Production Machining - Your access to the precision machining industrial buyer.
Issue link: https://pm.epubxp.com/i/144459
BY THE NUMBERS PMBI Shows Fourth Straight Contraction ith a reading of 44.8, Gardner's precision machining index showed that business activity contracted faster in June. Tis is the fourth straight contraction, and each month the rate of contraction has accelerated. Tere continues to be a signifcant gap in performance between large and small shops. In previous months, shops with more than 50 employees were growing. But in June, only shops with more than 100 employees grew. Facilities with 50-99 employees contracted for the frst time since December 2012. Te smallest shops, those with fewer than 19 employees, contracted at the second fastest rate since April 2012. New orders contracted for the third straight month. After four straight months of growth, production contracted as well in June. With the relatively stronger In June, only shops performance of producwith more than 100 tion versus new orders, employees grew. backlogs contracted at Facilities with 50-99 their fastest rate in 2013. employees contracted Tere are many indications that the industry for the frst time since is sufering from some December 2012. excess capacity at the moment. Employment contracted for the frst time in 2013. Exports continue to contract as the dollar continues to get stronger relative to other currencies. Supplier deliveries W STEVEN R. KLINE, JR. Market Analyst Gardner Business Media Inc. gardnerweb.com/economics/blog shortened for the frst time since December 2011. Tis is yet another sign of excess capacity in the market. Material prices grew at a slightly faster rate in June, while prices received continued to grow at the same rate, which has a slight negative impact on profts. Despite the recent poor performance in the industry, future business expectations reached their second highest level since June 2012. Te South Atlantic region grew for the second straight month. Te rate of growth increased signifcantly in June compared with May. Te West North Central region contracted in June after relatively strong performance in April and May. Te Pacifc region contracted for the third straight month, while the East North Central region contracted for the fourth straight month. Te Middle Atlantic region remains the worst performer, hitting its fastest rate of contraction since August 2012. Planned capital expenditures have fallen for four consecutive months, reaching their lowest level since November 2012. Production Machining Sub-Indices June May Change Direction Rate New Orders 44.7 47.6 -2.9 Contracting Faster 3 Production 45.5 50.7 -5.2 Contracting From Growing 1 Backlog 38.6 38.9 -0.3 Contracting Faster 15 Employment 48.1 50.9 -2.8 Contracting From Growing 1 Exports 44.6 46.2 -1.6 Contracting Faster 19 Supplier Deliveries 47.6 52.0 -4.4 Shortening From Lengthening 1 Material Prices 57.5 56.6 0.9 Increasing More 11 Prices Received 51.1 51.1 0.0 Increasing Flat 2 Future Business Expectations 63.3 62.0 1.3 Improving More 19 Production Machining Business Index 44.8 47.7 -2.9 Contracting Faster 4 64 PRODUCTION MACHINING :: AUGUST 2013