From Jay Timmons, President and CEO, National Association of Manufacturers (NAM), at President’s Council on Jobs and Effectiveness, Regulatory Reform Working Group, June 15, 2011:
“In a time of economic recovery where capital is scarce, every dollar diverted from productive use creates additional pressure to reduce labor costs. When the prices of commodities and other manufacturing inputs are increasing, as they are today, even more pressure builds to squeeze labor costs. In this environment, it is clear that unnecessary or cost-ineffective regulation dampens economic growth and will continue to hold down job creation. For some firms, this will be the final straw that destroys the whole business.”
Thank you Jay, our sentiments exactly.
PMPA is at this Regulatory Reform Subcommittee Meeting to assure attention is paid to the regulations that hamper our precision machining members’ ability to operate sensibly and sustainably.
Link to NAM Manufacturing Strategy for Jobs and Competitiveness
Tag: Economic Recovery
Industry Week’s report on the AISI’s annual meeting in Colorado Springs is the Official report on AISI website.
Here are a few key highlights.
- U.S. steel shipments will rise 14% in 2011 to approximately 90 million tons as the industry continues to rebound from the recession, according to Nucor Chairman and CEO Daniel DiMicco
- In March finished steel imports into the United States rose to their highest level since January 2009, said DiMicco, who also serves as AISI chairman.
- Demand from the commercial and residential construction industry remains weak and is not expected to reach pre-recession levels until 2012 at the earliest, said DiMicco.
- Increased demand from infrastructure construction projects has the potential create up to 3 million jobs over the next several years, said Mario Longhi, president and CEO of Gerdau Ameristeel Corp. and AISI director.
PMPA’s own Business Trends shows a recovery in progress. AISI reporting Steel Shipments up 14% and record imports confirm this- Steel is foundational to economic activity.
If you think steel prices are high now wait until commercial and residential construction recovers in a year or so…
This graph is pretty clear.
PMPA’s Index of Sales of Precision Machined Products in February 2011 was 110, staying even with the adjusted value for January 2011. (January had been reported at 111.) February’s index of 110 remains at its highest level in the thirty-two months since June 2008. Additional data in the February report indicated the industry is recovering nicely, and outlook is positive. The February 2011 sales level was equal to the February 2008 level prior to the Economic Recession.
This strong showing of industry sales is a clear signal that we need to adjust from our recessionary mode “hunker down” management style to a recovery mode “aggressively manage risk” methodology if we are to take full advantage of the markets today.
More than ever before, the keys to our company’s success are in our hands, not market externalitites.
PMPA members can read the full report at this link.
Accredited Press please contact PMPA for a copy of the report.
The August 2009 PMPA Business Trends Report increased to 73 in August up 3 points from July, up 4 points from June, and up 8 points from the May 2009 low of 65. Three months in a row of upward movement!
Three consecutive months of improvement. Or as one of my more pessimistic colleagues puts it, ” three consecutive months of sales not getting any worse.”
We’ll prefer our positive optimism to living in his dreary outlook anyday.
Here are our latest reasons we believe that the precision machining industry has begun its recovery based on approximately 100 members participating in our monthly PMPA Business Trends Report.
- Three consecutive months of sales increases.
- Over half 52% of respondents reported sales increases, and one third reported double digit sales increases.
- Average length of first shift climbed again to 38.2 hours.
- 63 % of responding companies reported 40 hour or more average length of first shift.
The shops reporting serve the Medical, Automotive, Aerospace, Heavy Machinery, Truck, Construction Equipment, Food Service Equipment, and Military Markets.
PMPA members can see the latest Business Trends Report here.
Bonus good news about the economy from the Fed Open Market Committee per an email from Dr. Ken Mayland, Clearview Economics:
“…economic activity has picked up…” versus last meeting on 8/12: “…economic activity is leveling out.” Yeah! The economy is now recovering (not recovered).
Picture credit : http://www.itsallabouteeyore.awoodman.net/
How do they know?
In comments to reporters accompanying the issuance of July 23’s Monetary Policy Report Bank Governor Mark Carney declared the recession over in Canada.
“We believe the economy will grow this quarter. The rate of growth will pick up to the end of the year and into 2010.”
The bank is forecasting economic growth of about 1.3% in the current quarter through September. Three percent (3%) through next year.
Ford’s $2.8 billion earnings surprise just might be evidence to that effect, and a sign to our industry that better days are, to use Bank Governor Carney’s terminology, ‘nascent.’
PMPA’s June Business Trends Report- available to members here – showed sales up a mere three points to 68 from May’s 65. However, of the 102 shops reporting, 42 % reported double digit sales increases in June compared to May. The average increase of those shops was 32.9%.
This is one time that we certainly won’t mind if this Canadian Economic Weather makes it down to us South of the border.
