Trouble for wood buyers
Plant engineers may have noticed that their budget for wood products isn't buying as much as it used to. A trade dispute between the U.S. and Canada has tightened supplies of lumber. As a result, prices for some lumber products popped in May 2001. For example, compared to a year earlier, prices for southern CDX interior sheathing jumped 19.
Plant engineers may have noticed that their budget for wood products isn't buying as much as it used to. A trade dispute between the U.S. and Canada has tightened supplies of lumber. As a result, prices for some lumber products popped in May 2001. For example, compared to a year earlier, prices for southern CDX interior sheathing jumped 19.9% while light framing pine lumber prices also increased 17.8% and tags for western hemlock lumber surged 16.9%.
This inflationary environment helped the softwood plywood (SIC 2436) industry to pull off the greatest bottom-line victory. Here, average prices in May 2001 increased 19.1% from April and 9% from a year ago. Factory buyers, however, may find May's price hike was an aberration that will not lead to future price concessions, for during the entire 12-month period ending May 2001, average softwood plywood prices actually fell 17.5%.
The slowdown in demand that we commented on three months ago has become considerably more noticeable. Again, end-markets for all the industries in our construction and maintenance supplies group continued slowing from a quarter ago. Now four industries have actually seen their end-markets decline. However, manufactures of flat glass, sheet metal work and wiring devices continue to enjoy double-digit end-market growth, so factory managers who buy these supplies had better stay on their toes.
Average Product Prices1Change, %, During 12-Mo Ending...
Direct Mfg. Costs2and Margins Grade
Growth in U.S. End Markets3Change, %, During 12-Mo Ending...
1Average product price changes are calculated from the producer price index for each 4-digit SIC (standard industrial classification) industry from the U.S. Bureau of Labor Statistics.
General sawmills and planing mills
Hardwood veneer and plywood
Softwood veneer and plywood
Metal partitions and fixtures
Paints and allied products
Other structural clay products
Steel pipe and tubes
Plumbing fittings and brass goods
Metal doors, sash, and trim
Sheet metal work
Refrigeration and heating equipment
Current-carrying wiring devices
Noncurrent-carrying wiring devices
Commercial lighting fixtures
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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