PMPA’s Index of Sales of Precision Machined Products rose to 85, the highest value for the year. This is an increase of 30.8% in the Sales index compared to the 2009 low of 65 in May for the 96 companies reporting this month. Our industry sales continue to recover.
Reason for optimism: October marks the fifth month in a row of increasing sales in the precision machining industry. The three month moving average crossed the 12 month moving average. For our industry, this data shows that recovery is underway. Thirty-four percent (34%) of participating shops reported double digit sales increases in October.
Sales Outlook: The percentage of respondents who felt that sales would decline over the next three months was almost equal to the percentage that thought sales would be up, (25% vs. 26%) with 48% expecting sales to remain about the same. The outlook for sales in the short term has stabilized.
Our report for October 2009 confirms that the sales of the precision machining industry are recovering. The percentage of respondents showing positive sales growth, the three month moving average for sales crossing the 12 month moving average for sales, five consecutive months of improved sales, and the rise of the sales index by 30.8% over the year’s low in May are strong and positive indicators of sales recovery.
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Tag: Double Digit Sales Increases
For the Precision Machining Industry, a strong case can be made that our sales are recovering.
PMPA’s Index of Sales of Precision Machined Products rose to 82, just one point below January’s high of 83.
This is an 11 percent rise in the sales index compared to August, and documents the 95 reporting companies in aggregate are showing a 26% recovery in sales compared to the 2009 year low of 65 in May, 2009.
Fifty-two percent (52%) of our particpants reported double digit sales increases in September.
The outlook for sales in the short term has stabilized, with only 19% of respondents expecting a decline in sales overthe next three months.
For almost a year, Tom Brady sat on the sidelines, working on his recovery. In the sixth week of this new season, he set an NFL record for touchdown passes in one quarter. What a comeback!
The Precision Machining Industry is still on the field despite being hamstrung last fall by the economic meltdown. Our performance continues to be 100% on time and zero ppm. We just need more time on the field. Comeback in progress!
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We have open time on our machines. How can we help you?
The July 2009 PMPA Business Trends Report remained level at 69 in July. We were pleased to see that this index did not further erode in July.
This is a departure from both the seasonal trend of low sales in July and a departure from the declines in sales all this year (only 1 month out of 7, March 2009, showed an uptick).
Here are three reasons we believe that the Precision Machining Industry’s recovery has begun.
- Sales have leveled off and did not decline further in July.
- Exactly half of all PMPA Business Trends Participants reported increases in sales for July. Almost one third reported double digit sales increases.
- Average length of first shift indicator climbed by 1.2 hours in July, first such increase all year. (The length of first shift has declined each month since January 2009 until July)
The shops reporting included those serving markets in Medical, Automotive, Aerospace, Heavy Machinery, as well as Trucks, Construction Equipment, Food Service, and Military.
Are we out of the dark tunnel yet? No.
But the PMPA’s Monthly Business Trends Report data tells us that about half of us are seeing some light at the end of the tunnel.
PMPA members can see the PMPA Business Trends Report here.
Photo courtesy Blueridgecollargirl her August 8 2008 post gives perspective and is worth a read.
