Motors shipments slip in third quarter

The NEMA Motors Shipments Index dropped between the second and third quarters of 2007 and was down 3.1% on a year-over-year basis.

12/07/2007


The NEMA Motors Shipments Index, a composite measure of NEMA-member companies’ U.S. shipments of fractional and integral horsepower motors, dropped 4.5% between the second and third quarters of 2007, and was down 3.1% on a year-over-year basis. Moreover, topline index has fallen in three of the last four quarters, which suggests that although demand for motors remains at a high level, it has clearly trailed off from cyclical highs.
The recent drop in fractional and integral HP motors demand came despite an uptick in broader macroeconomic growth. Real GDP increased by an average annual rate of 3.9 % during the third quarter of 2007, up slightly up from the 3.8% annualized gain during the April to June period, NEMA said. The primary concern with respect to the economy as a whole remains the housing market. Virtually all indicators point to a deepening of the housing market’s problems, which include falling prices, rising foreclosure rates and declining construction activity, over the course of the next several months and likely well into the second half of 2008, as the subprime mortgage crisis continues to unfold. The industrial sector remains in better shape, thanks to solid growth in output and business capital spending; however, confidence levels have slipped among manufacturers due to looming uncertainty over the economy’s trajectory and ebbing corporate profits.
Going forward, shipments of integral horsepower motors are expected to increase thanks to steady replacement and business investment demand. While that will buoy the overall total, the fractional horsepower segment is expected to weigh on the index over the next several quarters as crucial domestic end-markets will likely see conditions worsen. Consequently, NEMA/BIS anticipates the Motors Shipments Index will post modest declines over the near term.





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...
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
World-class maintenance: The three keys to success - Deploy people, process and technology; 2016 Lubrication Guide; Why hydraulic systems get hot
Flexible offshore fire protection; Big Data's impact on operations; Bridging the skills gap; Identifying security risks
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

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.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me