Economic slowdown hits tools

The economic slowdown has struck manufacturers of factory equipment and tools, but the hit hasn't been too severe. All 19 industries classified here as tools manufacturers saw their U.S. end markets slow in the 12-mo ending March 2001, but in most cases, the deceleration was miniscule. For example, the industry that makes instruments to measure electricity (SIC 3825) saw end-market growth sl...

06/01/2001


The economic slowdown has struck manufacturers of factory equipment and tools, but the hit hasn't been too severe. All 19 industries classified here as tools manufacturers saw their U.S. end markets slow in the 12-mo ending March 2001, but in most cases, the deceleration was miniscule.

For example, the industry that makes instruments to measure electricity (SIC 3825) saw end-market growth slow to "only" 48.62%, down from 53.87% in the 12-mo ending December 2000. That change is a 5.3% slowdown, but it's from such a high level that the change hardly registers.

More noticeable is the negative growth seen in the fluid meters (SIC 3824) and process controls instruments (SIC 3823) industries. Here, end-markets fell 3.38% in the 12-mo ending March 2001.

The demand slowdown should brighten prospects for plant engineers who are buying new equipment and tools. Tools producers may be more willing to cut prices in order to maintain market share. We also see improvements in the margin conditions for 11 industries in the tools and equipment arena.

Price/cost/demand roundup

IndustrySICAverage Product PricesAverage Product PricesDirect Mfg. CostsDirect Mfg. CostsGrowth in U.S. End MarketsGrowth in U.S. End Markets

the average producer in an industry. Grades of A to A+ mean plant engineers may be able to strike a better bargain with suppliers and better control plant costs.

All data prepared and presented by Thinking Cap Solutions, Inc., Port Angeles, WA (telephone: 360-452-6159; e-mail: ebaatz@ice-alert.com).
Other hand and edge tools34231.030.99StableB6.235.31
Hand saws and saw blades34250.420.29StableC4.262.69
Other hardware34291.911.61StableA3.611.61
Other power transmission equipment35681.091.04StableA+6.153.62
Conveyors and conveying equipment35351.131.46StableA+7.235.86
Hoists, cranes, and monorails35361.761.94StableA+6.354.36
Industrial trucks and tractors35371.231.54StableA8.736.48
Metal-cutting machine tools35410.780.74StableC17.2915.47
Machine tool accessories35450.981.30StableF11.198.31
Power driven hand tools35460.210.65StableF3.652.36
Welding apparatus35482.122.04StableB2.49-0.30
Pumps and pumping equipment35611.661.86StableA4.002.47
Air and gas compressors35631.211.17StableB4.002.47
Speed changers, drives, and gears35662.132.22StableA6.153.62
Transformers36122.401.56StableC33.0030.68
Motors and generators36210.230.32StableF22.9820.39
Process control instruments38231.101.16StableC-0.54-3.38
Fluid meters and counting devices38242.662.74StableD-0.54-3.38
Instruments to measure electricity38251.341.35StableF-3.8748.62





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