NEMA sees robust industrial control business growth

01/03/2006


Sales of industrial control products and systems, as measured in NEMA’s Primary Industrial Controls Index, increased 3% during the third quarter of 2005. The index jumped by 5.5% compared to the same period a year ago, according to NEMA. With its eighth consecutive quarterly gain, NEMA’s Primary Industrial Controls Index is now 24% above the market’s recessionary low point. “Consequently,” said Brian Lego, NEMA's director of economic analysis, “these data indicate a period of increasingly robust growth for an industry that was hit hard by the protracted weakness in U.S. manufacturing activity.”

The Primary Industrial Control and Adjustable Speed Drive Index gained 4.2% between the second and third quarters of 2005. In addition, sales growth accelerated for this market segment, as the index posted a 9.6% gain when compared to the third quarter of 2004. “The most recent quarter’s reading nearly eclipsed the index’s all-time high and represents a 27% increase in overall sales since the close of 2002,” Lego said.

Manufacturing activity is expected to remain a positive driver for industrial controls demand. The factory-operating rate increased to its highest point in five years during the third quarter of 2005 and total manufacturing output has been on the rise in the last nine quarters. In fact, manufacturing activity has rebounded strongly enough that certain industries are slated to undergo capacity additions. The manufacturing sector is expected to see a re-acceleration in output during 2006 as hurricane-related rebuilding in the Gulf Coast begins in earnest.

Healthy demand for industrial machinery and equipment has bolstered demand for industrial automation systems. After an unexpectedly weak second quarter, in which real business investment in industrial equipment declined measurably, this measure jumped more than 20% during the third quarter, marking the largest one-quarter jump in more than a decade. “There was a pullback in industrial machinery production during the third quarter, but this is expected to be temporary,” Lego said. “Indeed, output growth is expected to average more than 6% until late 2007 as domestic companies, many of which are seeing profits soar, replace old equipment or expand capacity.”





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 Product of the Year; Diagnose bearing failures; Asset performance management; Testing dust collector performance measures
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
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 of plant safety and offers advice on best practices.
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