Motors shipments decline sharply to close out 2007

On a year-over-year basis, the index fell nearly 7% and has slipped in four of the last five quarters. Over the full calendar year, the index declined 3.5% after posting two consecutive years of double-digit growth.

02/29/2008


NEMA ’s Motors Shipments Index contracted 7.3% quarter-to-quarter during the last three-month period of 2007. On a year-over-year basis, the index fell nearly 7% and has slipped in four of the last five quarters. Over the full calendar year, the index declined 3.5% after posting two consecutive years of double-digit growth. The index’s recent weakness stems largely from a precipitous decline in fractional horsepower motor shipments, a decline likely related to the U.S. housing market’s recession. By contrast, demand for integral horsepower motors has remained strong throughout the recent slippages in the top-line index.
Fears of an impending recession have been stoked by a host of negative economic data in recent weeks. For example, the fourth quarter 2007 reading on real GDP showed the U.S. economy expanded at a mere 0.6% rate, the weakest performance since 2002. The ISM nonmanufacturing index showed the services side of the economy contracted in January, marking the first decline in service sector business activity in more than five years. In addition, indicators suggest no improvement any time soon in the housing market as construction activity continues to plummet, prices decline and foreclosures mount. On a more positive note, the manufacturing sector, notwithstanding a slump in fourth quarter output, has held fairly steady.
The industrial sector is expected to register steady growth going forward, thanks to export demand and to a lesser extent business investment and inventory replenishment. As a result, demand for integral horsepower motors is expected to support the overall index. Unfortunately, further declines in the index are likely as NEMA/BIS anticipates conditions underlying the fractional horsepower segment will worsen.





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Prescriptive maintenance; Hannover Messe 2017 recap; Reduce welding errors
Safety standards and electrical test instruments; Product of the Year winners; Easy and safe electrical design
Safer human-robot collaboration; 2017 Maintenance Survey; Digital Training; Converting your lighting system
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
Automation modernization; Predictive analytics enable open connectivity; System integration success; Automation turns home brewer into brew house
Commissioning electrical systems; Designing emergency and standby generator systems; Paralleling switchgear generator systems
Natural gas for tomorrow's fleets; Colleges and universities moving to CHP; Power and steam and frozen foods

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
Compressed air plays a vital role in most manufacturing plants, and availability of compressed air is crucial to a wide variety of operations.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me