Economic slowdown hits tools
The economic slowdown has struck manufacturers of factory equipment and tools, but the hit hasn’t been too severe. All 19 industries classified here as tools manufacturers saw their U.S. end markets slow in the 12-mo ending March 2001, but in most cases, the deceleration was miniscule.
For example, the industry that makes instruments to measure electricity (SIC 3825) saw end-market growth slow to “only” 48.62%, down from 53.87% in the 12-mo ending December 2000. That change is a 5.3% slowdown, but it’s from such a high level that the change hardly registers.
More noticeable is the negative growth seen in the fluid meters (SIC 3824) and process controls instruments (SIC 3823) industries. Here, end-markets fell 3.38% in the 12-mo ending March 2001.
The demand slowdown should brighten prospects for plant engineers who are buying new equipment and tools. Tools producers may be more willing to cut prices in order to maintain market share. We also see improvements in the margin conditions for 11 industries in the tools and equipment arena.
|Industry||SIC||Average Product Prices||Average Product Prices||Direct Mfg. Costs||Direct Mfg. Costs||Growth in U.S. End Markets||Growth in U.S. End Markets|
|the average producer in an industry. Grades of A to A+ mean plant engineers may be able to strike a better bargain with suppliers and better control plant costs.
All data prepared and presented by Thinking Cap Solutions, Inc., Port Angeles, WA (telephone: 360-452-6159; e-mail: email@example.com).
|Other hand and edge tools||3423||1.03||0.99||Stable||B||6.23||5.31|
|Hand saws and saw blades||3425||0.42||0.29||Stable||C||4.26||2.69|
|Other power transmission equipment||3568||1.09||1.04||Stable||A+||6.15||3.62|
|Conveyors and conveying equipment||3535||1.13||1.46||Stable||A+||7.23||5.86|
|Hoists, cranes, and monorails||3536||1.76||1.94||Stable||A+||6.35||4.36|
|Industrial trucks and tractors||3537||1.23||1.54||Stable||A||8.73||6.48|
|Metal-cutting machine tools||3541||0.78||0.74||Stable||C||17.29||15.47|
|Machine tool accessories||3545||0.98||1.30||Stable||F||11.19||8.31|
|Power driven hand tools||3546||0.21||0.65||Stable||F||3.65||2.36|
|Pumps and pumping equipment||3561||1.66||1.86||Stable||A||4.00||2.47|
|Air and gas compressors||3563||1.21||1.17||Stable||B||4.00||2.47|
|Speed changers, drives, and gears||3566||2.13||2.22||Stable||A||6.15||3.62|
|Motors and generators||3621||0.23||0.32||Stable||F||22.98||20.39|
|Process control instruments||3823||1.10||1.16||Stable||C||-0.54||-3.38|
|Fluid meters and counting devices||3824||2.66||2.74||Stable||D||-0.54||-3.38|
|Instruments to measure electricity||3825||1.34||1.35||Stable||F-||3.87||48.62|