Doug Glenn, Author at Heat Treat Today

Heat Treat Economy Continues Strong Per IHEA Monthly Report

April 29, 2019 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

Of the eleven economic indices reported on monthly by the Industrial Heating Equipment Association for the benefit of its member companies, four of the indices showed upward growth while only a few dropped significantly. All others remained relatively unchanged.

The four upward trending indices included PMI New Orders, Automobile and Light Truck Sales, Metal Prices, and the Credit Managers Index. The IHEA report, supplied monthly to IHEA member companies, goes into detail on the significance of these upward movements dedicating one full page of the report to each of eleven indices.

Indices not faring so well included Capital Expenditures, Durable Goods Orders, Factory Orders, and Home Starts. Most of the non-positive moving indices saw only slight decreases.

For a full copy of the report, contact Anne Goyer, Executive Director of the IHEA by clicking here.

IHEA Annual Meeting Kicks Off in Florida

Leaders from the heat treating and thermal processing industry are meeting this week at Lido Beach Resort in Florida, USA. This three-day industry meeting, organized by IHEA, attracts leaders from heat treat furnace manufacturers, heat treat component suppliers, and providers of heat treating supplies and consumables. This year’s meeting features discussions on heat treating and cybersecurity, an update on the impact of Washington’s policies on the heat treating industry, as well as an in-depth look at the above mentioned economic indices from IHEA’s economist.

Registration Open for NFPA 86 Update Seminar

IHEA Lido Beach Resort Spring Meeting April 2019

IHEA’s next educational event will be an NFPA 86 Update Seminar being held on May 14th from 9:00-3:00 at the Fabricators & Manufacturers Association in Elgin, Illinois. For more information, contact Anne Goyer, Executive Director of IHEA by clicking here.

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Where’s the Heat Treat Economy Headed: Up, Down, Flat?

March 29, 2019 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

Finding the right metric to measure the ubiquitous heat treat economy is like trying to take the temperature of the ocean. It can be hot in some spots, cold in others, and an average temperature really doesn’t help anyone. Finding economic data that can help suppliers to the heat treat industry plan future business fluctuations is all but impossible. Industrial Heating magazine has been publishing its Economic Indicators for well over a decade. This is one of the best sources for heat treat-specific economic data freely available to the public. Click here for the latest numbers from Industrial Heating.

The Industrial Heating Equipment Association (IHEA) provides a monthly Executive Economic Summary to their members as well. According to the most recent report from IHEA, the signals are mixed as to where the heat treat economy is headed. Below are a few highlights. To access the full report, please contact Anne Goyer, Executive Director of IHEA by clicking here.

Factory Orders — headed up.
Durable Goods — headed up.
Transportation Index — headed up.
Steel Consumption — headed up.

All of the above indices are headed north, but exactly what impact does each have on the heat treat industry?

Industrial Capacity Utilization — headed down.
Metal Prices — softening.
Purchasing Managers Index — down.
Capital Expenditures — down.

Likewise, these four indices headed south but their impact on the heat treat industry is not easily discernible.

A more complete understanding of the direct impact of the above eight (8) indices plus three (3) others on the heat treat industry can be gained by the analysis provided in the IHEA Executive Economic Summary report. The monthly report dedicates one page to each of eleven (11) heat treat-related indices with in-depth analysis by IHEA’s contracted economist.

In my eyes, the data and analysis provided by IHEA is one of the most valuable pieces of economic heat treat data a heat treat industry supplier can have.

Contact Anne Goyer for more information on this report.

Where’s the Heat Treat Economy Headed: Up, Down, Flat? Read More »

Heat Treat Economic Report Continues Strong

February 28, 2019 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

Nine of eleven economic indicators from the monthly Industrial Heating Equipment Association (IHEA) were up in January. That miffed some who thought the industry was starting to soften. In fact, it is not conclusive one way or the other, but January’s numbers showed strength and surprisingly strong upward movements from a vast majority of the indices.

Graph of Capital Expenditures — Capital Expenditures for January were up significantly

Graph of Durable Goods orders. — Durable Goods orders were strong in January

The numbers, which we will dive a bit deeper into below, are provided monthly to members of the IHEA along with a 12-page report that digs into each index and how movement in that index will specifically impact the thermal processing industry. Anyone interested in receiving the report should contact Anne Goyer, Executive Director of IHEA, whose contact information is given at the end of this post.

Which indices were up? As mentioned earlier, nearly all of them.

New Home Starts took a significant jump.
Steel Consumption was up significantly.
Industrial Capacity Utilization was also up from the previous month.
Metal prices (aluminum, gold, nickel, copper) were also up.
The PMI was up significantly.
Capital Expenditures took a huge jump upward.
Durable Goods saw modest growth.
Factory orders rebounded from a previous month’s dip.
Transportation Index experienced a nice rebound after falling for several months.

The only two indices that did not improve were:

New Automobile and Light Truck Sales were essentially flat falling only slightly.
Credit Movement was significantly down

According to the IHEA report, this downward movement in the credit index causes one to pause and question whether 2019 will be as robust as 2018.

Further analysis of each of these 11 indices can be obtained from Anne Goyer, Executive Director at IHEA, who can be reached at anne@goyermgt.com.

Heat Treat Economic Report Continues Strong Read More »

Heat Treat Prospects: Short Term, Good; Long-Term, Questionable

January 31, 2019 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

The final 2018 monthly economic report from the Industrial Heating Equipment Association (IHEA) was released earlier this month and reveals five indices trending upward and six trending downward. According to IHEA’s economist, the six trending downward are more long-term-looking while the five upward trending indices are more short-term-looking. The report suggests that it would be safe to conclude that the economy is softening and may start to slow in growth before the end of 2019.

Three of the biggest dippers were the Purchasing Managers Index (PMI) which “. . . crashed hard this month,” according to the report, the Credit Managers Index, and the Transportation Index. The full report offers a more complete analysis of these three indices.

Moving in a positive direction were new home starts, capacity utilization, capital expenditures, durable goods, and factory orders.

Each of the eleven indices receives a full page analysis as well as commentary on how the changes in that index may affect the thermal processing/heat treating industry.

To receive a complete copy of this month’s report, contact IHEA Executive Director, Anne Goyer, by email.

Heat Treat Prospects: Short Term, Good; Long-Term, Questionable Read More »

Merry Christmas from Heat Treat Today

December 21, 2018 / FEATURED NEWS

A Holiday Wish from the Publisher

For a large percentage of the world’s population, Christmas is about the birth of Jesus Christ, God’s gift of His Son to save a sinful world. That Gift is “the Reason for the season.” Although commercialism continues to grow, there are those diehard fans of Christmas who try to preserve the real meaning and significance of the holiday. Christmas is about giving. (Speaking of “die hard,” my son and I just finished watching Die Hard 1, the classic “Christmas” movie starring Bruce Willis. It may be “classic,” but it doesn’t appear to have anything to do with “the reason for the season.” Nonetheless, you might enjoy it . . . especially if you have teenage or 20-something men in your home.)

One of my favorite quotes about “giving” is from a Christian missionary named Jim Elliot. “He is no fool who gives [away] what he cannot keep,” said Elliot, “to gain what he cannot lose.” He was referring to giving away of one’s physical life (which you can’t keep) to gain eternal life (which you can’t lose). Mr. Elliot, at the young age of 28, did that exact thing — gave his physical life trying to share the Source of eternal life with others. You can read more about his story here.

Since “giving” characterizes the season, I’d like to give a “thank you” to some of the people who have helped Heat Treat Today grow to be a leading heat treat industry media brand in 2018.

First, thanks to all of the manufacturers with in-house heat treat departments, especially in the aerospace, automotive, medical, and energy sectors who read our content or listen to our Heat Treat Radio podcasts. Our hope is that you’ll continue to find the content we provide more and more helpful in your work. You’re the ones we have in mind every time we prepare our content for publication. Please let us know if we can be more helpful.

Thanks also goes to the growing number of heat treat industry suppliers who are finding Heat Treat Today an effective way to get the word out about their products or services. It’s these industry suppliers who pay the bills and make this venture possible. Thank you, friends!

Finally, thank you to the people who make Heat Treat Today happen every day!

Thank you, Laura Miller, editor, for your faithful labors. You’re a joy to work with, and you deserve much more recognition than you receive.

Thank you, Brandon Glenn, web design manager and nephew (not son) of yours truly. Brandon, your help has been invaluable and your passion for the true Reason for the season is something I pray grows and grows. Thanks for all your help.

Thanks to Jonathan Lloyd for his work on Heat Treat Radio and CONGRATULATIONS for completing just days ago his undergraduate studies in audio/visual arts. Jonathan, you will be successful. Keep your eyes on the Reason for the season as you progress through life.

Heat Treat Today has added several other helpers this year including Meredith Egeland (formerly Meredith Glenn, my daughter) who helps with social media, Kelly Condon (mother of Jonathan Lloyd) who has helped with accounting and billing, and Michelle LaMay who recently joined us to help with editorial content.

Second to last and most cherished in my heart is the lovely and gracious Mrs. Glenn (Mary) who makes every day a joy. Thanks for your help!

Finally, thanks to the One who gives all of us on the Heat Treat Today team the ability to do anything worthwhile, Jesus Christ, the real Reason for Christmas.

Blessings to you and your families from the Heat Treat Today family.

Heat Treat Today will not publish content December 24–January 1. We’ll return with new and exciting content on January 2, 2019. Be safe.

Merry Christmas from Heat Treat Today Read More »

IHEA Report Suggests Continued Growth in 2019 Even with Severe Political Divide

December 20, 2018 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

The monthly Executive Economic Summary published by the Industrial Heating Equipment Association showed slowing growth in November. Nonetheless, the report suggests that the economy will continue to grow steadily in 2019 despite a moderation of growth rates.

Here are a few highlights from the report which is made available in its entirety to IHEA members each month:

Indexes moving up included:

Car and light truck sales have increased slightly. This index was expected to drop significantly earlier this year and never did.
Housing starts continued to grow but more slowly than in previous months.
Steel consumption continues to be strong.
Metal prices also remain steady or increasing.
Capital investment — up.
Credit index — also up.

Those indices that retreated include:

Capacity utilization. Still slightly below 80 which is where economists like to see it. Nonetheless, this number is still quite high compared to recent months.
Purchasing managers index also slipped but continues to show significant growth.
Durable goods orders — down
Factory goods orders — down
Transportation index — down

Although a number of indexes were down, almost all continue to show growth or slight levels of economic contraction.

The 12-page report dives deeply into the above 11 indexes dedicating a complete page to each index.

The complete report is available to IHEA member companies. To obtain a copy of the report, please contact Anne Goyer, Executive Vice President of the Industrial Heating Equipment Association (www.ihea.org). You can email Anne by clicking here.

IHEA Report Suggests Continued Growth in 2019 Even with Severe Political Divide Read More »

IHEA Monthly Economic Indices — 5 Up, 7 Down

December 3, 2018 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

Vehicle sales, durable goods orders, capacity utilization, and factory orders were four of the five indices trending upward.

Housing, metal prices, capital expenditures, and the purchasing manager’s index were among the seven indices that suffered in October. According to IHEA’s economist, the most disturbing of the declining indexes is the decline in the Purchasing Manager’s Index, which was more than anticipated. Overall, however, all of the declining numbers are still well above historic averages showing that the economy continues to be strong.

“. . . but it is important to note that even with the declines in some sectors, the overall status of these readings remains higher than it had been in several years.”

~ Excerpt from IHEA’s Monthly Executive Economic Summary

The Purchasing Managers Index took a significant dip in October.

Automobile and light truck sales continue to be strong in October.

Analysis of all 12 indices is presented monthly to IHEA member companies and is available by contacting Ann Goyer at ann@goyermgt.com or at (941) 373-1830.

IHEA Monthly Economic Indices — 5 Up, 7 Down Read More »

9 of 11 Indices Up in IHEA Economic Report

October 31, 2018 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

According to IHEA’s monthly economic report to member companies, nine of the eleven indices are up and the only two that are not up are still quite strong. To get the weak indices out of the way, here they are: Purchasing Managers Index (which is still quite high), and the Transportation Activity Index (which also is quite high). Both showed slippage in September, but neither is a focus of worry.

PMI for September showed slight reductions, but is still strong overall.

Transportation Activity Index was slightly off for September, but still quite strong.

On the lead page of the report, the following summary paragraph appears:

The nine categories that ended up in positive territory include “new automobile/light truck sales” and this reflects the fact that consumers are still quite confident about their job security and have no issue with taking on debt to buy a new car or truck. The “new home sales” category is healthy, although it is important to note that there is a deepening division between the cities that are seeing growth between 20% and 40% and the those that are shrinking. It has all come down to which cities are generating jobs. The existing home market has not been quite as lively as the new home sector and it is much the larger of the two. The “steel consumption” category is still reflecting the desire on the part of steel consumers to hoard cheaper steel, but there has also been evidence of returning steel demand in everything from vehicles to pipelines to construction activity. The “metal prices” readings are all going up and that has been anticipated for some time. The only one that hasn’t is gold and that would suggest that fewer people are seeking shelter from inflation in this metal. The other industrial metals are all going up in response to increased demand.

The 12-page report goes on to offer in-depth analysis of all 11 indices and what impact each might have on the thermal processing industry. The full report is available for review from the Industrial Heating Equipment Association (www.ihea.org) and is an exclusive benefit of membership in the organization. If you’re interested in seeing a copy of the report, contact Anne Goyer, Executive Director of IHEA at Anne@GoyerMgt.com.

9 of 11 Indices Up in IHEA Economic Report Read More »

IHEA Monthly Economic Report: Economy Strong, Rising Prices Predicted

September 28, 2018 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

The monthly economic report published by the Industrial Heating Equipment Association (www.ihea.org) for its member companies reported that the economy is strong mostly due to tax cuts and deficit (debt) spending and warns of rising prices in the future.

Of the 11 indices that are watched and commented on each month, 5 of them are moving in a positive direction, lead by very strong positive numbers from both the Purchasing Managers Index (PMI) as well as the Credit Managers Index (CMI). Six indices trending downward all moved only slightly downward, leaving economists to believe that the industrial sector may be treading water while the flood waters (literally and figuratively) recede and until the direction of the economy is more clear.

Of more immediate concern was the reason behind the strong economy. According to IHEA’s economist, the economy has responded positively primarily due to tax cuts and deficit spending. Both of these factors tend to result in future broad-based price increases.

The 11-page report has one overview page followed by 10 pages of deep-dive analysis, one page for each of the 11 indices watched.

To get a full copy of this monthly report, please contact Anne Goyer, Executive Director of the Industrial Heating Equipment Association (IHEA). Email Mrs. Goyer by clicking here.

IHEA Monthly Economic Report: Economy Strong, Rising Prices Predicted Read More »

IHEA Monthly Reports Shows Strong Industrial Activity

August 31, 2018 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

The Industrial Heating Equipment Association’s (IHEA) monthly report for July showed very strong industrial activities.

IHEA report shows that durable goods had a strong showing in July.

Among the winners were durable goods orders, industrial capacity utilization, factory orders, and capital expenditures. New automobile and light truck sales were also up.

There were, however, some downward moves. Most notably: housing starts took a huge dip, while steel consumption and metal prices both took a dip.

Several indices — the transportation activity index, the purchasing managers index, as well as the credit movement index — were all well above 50, showing continued growth even though several of them revealed minor signs of weakening.

IHEA report showed strong gains in capital expenditures in July.

A more complete explanation of each index is provided in the full report which is published monthly by IHEA for member companies.

If you’d like to receive a full copy of this 12-page report, contact Anne Goyer, Executive Director of IHEA by clicking here.

IHEA Monthly Reports Shows Strong Industrial Activity Read More »

Doug Glenn