Manufacturer's alliance/MAPI report: Growth slows, but some sectors stay strong in 1Q

The quarterly Manufacturers Alliance/MAPI report on the health of the manufacturing sector offered a mixed bag of news for the first quarter of 2005. While it sees slowing growth in the sector over the next two years, only four of 27 industries surveyed showed declining business activity in the first quarter.

07/01/2005


The quarterly Manufacturers Alliance/MAPI report on the health of the manufacturing sector offered a mixed bag of news for the first quarter of 2005. While it sees slowing growth in the sector over the next two years, only four of 27 industries surveyed showed declining business activity in the first quarter.

"The cyclical analysis of 27 industries in the current report finds that most industries are past the peak growth rate that they will achieve in this cycle. This does not mean that there will not be further growth, only that the rate of growth will decelerate," the report stated. "We predict that manufacturing industrial production growth will decelerate from its 4.8% growth level last year to 3.4% in 2005 and 3.0% in 2006. "In general, industries that were in the peak phase of growth in the fourth quarter of last year decelerated their pace of growth in the first quarter."

There were still some strong areas of growth, as mining and oil and gas field machinery; oil and gas well drilling; communications equipment; navigational, measuring, electromedical, and control instruments; electronic computers; and material handling equipment all experienced double-digit growth in the first quarter, according to the Manufacturer's Alliance/MAPI report.

Data on equipment manufacturing was especially strong. "A positive sign that the manufacturing recovery has longevity is that six of the seven production equipment categories experienced growth in the first quarter of this year," the report noted. "Manufacturing industrial production is growing at a moderate pace and is driving the need to move materials around the factory floor and warehouse. Furthermore, large increases in trade flowing through the nation's ports, trucking terminals, and rail yards are an indication that material movement is increasing. First quarter inflation-adjusted material handling orders were 35% above order activity one year ago."

"Mining and oil field and gas field machinery production was up 12% in first quarter 2005 versus one year ago. World economic growth will decelerate this year, particularly in Japan and Europe, which should take some pressure off energy demand growth," according to the report. "China, the second largest oil-consuming country in the world, still is booming though and shows few signs of a promised slowdown to a soft landing in its manufacturing sector. With petroleum and metal prices at record highs, there is a profit incentive to expanding mining activity. Mining and oil field and gas field machinery production is making a strong recovery but is not booming as it has in the recent past.

"All told, mining and oil field and gas field machinery production is projected to increase 14% in 2005 and grow 7% in 2006," the report concluded.





Top Plant
The Top Plant program honors outstanding manufacturing facilities in North America.
Product of the Year
The Product of the Year program recognizes products newly released in the manufacturing industries.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
June 2018
2018 Lubrication Guide, Motor and maintenance management, Control system migration
May 2018
Electrical standards, robots and Lean manufacturing, and how an aluminum packaging plant is helping community growth.
April 2018
2017 Product of the Year winners, retrofitting a press, IMTS and Hannover Messe preview, natural refrigerants, testing steam traps
June 2018
Machine learning, produced water benefits, programming cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
Spring 2018
Burners for heat-treating furnaces, CHP, dryers, gas humidification, and more
April 2018
Implementing a DCS, stepper motors, intelligent motion control, remote monitoring of irrigation systems
February 2018
Setting internal automation standards

Annual Salary Survey

After two years of economic concerns, manufacturing leaders once again have homed in on the single biggest issue facing their operations:

It's the workers—or more specifically, the lack of workers.

The 2017 Plant Engineering Salary Survey looks at not just what plant managers make, but what they think. As they look across their plants today, plant managers say they don’t have the operational depth to take on the new technologies and new challenges of global manufacturing.

Read more: 2017 Salary Survey

The Maintenance and Reliability Coach's blog
Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
One Voice for Manufacturing
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 Maintenance and Reliability Professionals Blog
The Society for Maintenance and Reliability Professionals an organization devoted...
Machine Safety
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
Research Analyst Blog
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Marshall on Maintenance
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
Lachance on CMMS
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Electrical Safety Update
This digital report explains how plant engineers need to take greater care when it comes to electrical safety incidents on the plant floor.
Maintenance & Safety
The maintenance journey has been a long, slow trek for most manufacturers and has gone from preventive maintenance to predictive maintenance.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
Randy Steele
Maintenance Manager; California Oils Corp.
Matthew J. Woo, PE, RCDD, LEED AP BD+C
Associate, Electrical Engineering; Wood Harbinger
Randy Oliver
Control Systems Engineer; Robert Bosch Corp.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me