NEMA: motors rebound, predicts mixed conditions

For the second straight quarter, shipments of fractional-horsepower motors have increased. However, gains and projections are meager.


Shipments of integral and fractional horsepower motors increased for the second consecutive quarter, as NEMA’s Motors Shipments Index increased 2.8% on a quarter-to-quarter basis during the second quarter of 2007. On a year-over-year basis, the index suggests that underlying gains in motors demand growth remain small, with a 0.1% gain in the top-line index compared to the second quarter of 2006. Nonetheless, the motors shipment index has increased 56% from its lowest point in the last economic downturn.
Integral horsepower motors will likely continue to see modest gains in demand. By contrast, end-market conditions have soured for fractional horsepower motors and are expected to remain a limiting factor to future gains in the top-line index. The residential housing market, which is one of the more important ultimate destinations for products containing fractional motors, has not yet reached a bottom, and the probability that conditions worsen further during the second half of 2007 is high and rising.
The NEMA Motors Index is a composite measure of NEMA-member companies’ U.S. shipments of fractional and integral horsepower motors. Product shipments data are drawn from NEMA statistical surveys and are adjusted for inflation and seasonal fluctuations.

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