HEAT TREAT ECONOMIC NEWS Archives

IHEA Monthly Economic Report: Remarkable Recovery- Consumers Remain Cautiously Optimistic

September 28, 2020 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

Growth takes time, but celebrating the small steps and progress is good for the heart and soul– of people and country. “There has been a remarkable level of economic turnaround taking place in the last couple of months. Of the eleven indicators we watch there has been a recovery in every one of them,” so begins August’s Industrial Heating Equipment Association’s (IHEA) Executive Economic Summary.

Yes, the gains have come off record losses and numbers haven’t climbed back to where they were at the beginning of the year, however, as the report conveys, “Given the data that was showing up just a few months ago, the situation now could be far worse at this point and if there is a continuation of these recent trends there could be a recovery of that first quarter momentum by the beginning of the fourth quarter.

The report asks this question: With every index reading trending positive there is not much to contrast so the key issue is why. What is the prime motivation for the comeback and where might the weak points be?” Three factors are suggested for the gains. The first is the elements of the lockdown have been lifted. “Where there has been a relaxation of the restrictions, there has been economic growth.” The second reason for the economic growth is a resumption of consumer demand. “It was hoped that consumers would be eager to resume their old habits but there was no guarantee, and there was some hesitation as far as consumption was concerned. That largely vanished by the middle of the summer.” The third growth factor was the producers’ willingness to meet the recovering demand. “Production levels have been increasing through the last few months and there has been little indication that activity was being slowed deliberately as a means by which to boost prices through manufactured shortages.”

What is a potential weak area that could adversely affect the economy? The short answer– the election. “Perhaps the most potent unknown surrounds the election. There is always a concern when the possibility exists for a change in leadership. That concern ramps up when there is more at stake than just the White House. The business community is affected more by [who] holds power in Congress as this is where those fiscal decisions are made.

To highlight just two indices, first, take a look at the New Home Starts where the housing market “is booming in almost every respect. The analysis states, “The surge has been seen primarily in the single-family home category as there has been an exodus of people from urban areas to the suburbs and exurbs.” Why? Because due to the lockdown restrictions, people are tired of cramped living conditions, and many are craving more space in the suburbs. “The majority of the factors that stimulate home buying are trending in a positive direction. Mortgage rates remain at very low levels and lenders are still willing to do these home loans.”

There have been people leaving cities they no longer feel safe living in and perhaps the most salient factor is the desire to end their long commutes. (Source: IHEA)

The second index that highlights a viable and healthy rebound is the Factory Order index. “The gearing up for the holiday season is well underway as the retailers have clearly signaled that they are expecting a very early buying season. They will be entering the period with an ‘inventory light’ strategy and will be turning the entire month into ‘Blackvember’ with early sales and discounts designed to capture the attention of the early shopper.”

The recovery of the factory order segment is perhaps better news than the rebound in durable goods and some of the other industrial indicators as it is coming at an ideal time. The gearing up for the holiday season is well underway… (Source: IHEA)

Resilient has often described Americans throughout our history, and this period in time is no different. Challenges make us stronger, and hopefully, wiser. Here’s looking to a continued growing economy and wisdom in decision-making.

Check out the full report to see specific index growth and analysis which is available to IHEA member companies. For membership information, and a full copy of the 12-page report, contact Anne Goyer, Executive Director of the Industrial Heating Equipment Association (IHEA). Email Anne by clicking here.

IHEA Monthly Economic Report: Remarkable Recovery- Consumers Remain Cautiously Optimistic Read More »

Looking Ahead: Industry Expansion in Uncertain Climate

We see the expansion plans of companies related to the heat treat industry, and we are with you: How? Why? At this time?

Heat Treat Today’s Original Content article seeks to illuminate some of these questions and frame industry expansion in real terms, as well as share reasons to be hopeful for the future. Featured in this article are Industrial Heating Equipment Association (IHEA) Economic Specialist Dr. Chris Kuehl, Managing Director at Armanda Corporate Intelligence, and Jason Orosz, President of Nitrex Heat Treating Services (HTS).

“COVID-19 may own the spotlight today, but manufacturing’s tomorrow is getting some big-dollar investments.“

– Jill Jusko, “Looking for Good News in US Manufacturing? Major Expansion Plans Add Some Sizzle,” Industry Week

[spacer color=”3366ff” icon=”fa-question-circle”]

It is safe to say that manufacturers have taken encouragement from news of industry giants in the manufacturing industry announcing the status of their expansion plans. Last month, Industry Week covered several of these changes: Navistar International Corp. broke ground for a plant in San Antonio, TX; Canpack Group, based in Krakow, Poland, will build an aluminum beverage can plant in Pennsylvania; Tesla had already begun its Gigafactory located near Austin, Texas which is set to be operational by the end of 2021; and Nikola Corp. also broke ground on its 1 million-square-foot manufacturing facility in Coolidge, Arizona.

Ribbon Cutting with the Owners: Doug and Jackie Peters, Diana Wilkosz (VP), and Andy Wilkosz (President)
(photo source: Peters’ Heat Treating, Inc.)

In the heat treat world, we’ve seen companies, like Peters’ Heat Treating and Nitrex, celebrating plant expansions, opening new facilities and breaking ground to expand existing ones. Jason Orosz, president of Nitrex Heat Treating Services (HTS), illuminates that there is a backstory to the titillating headlines: “[many] recently announced expansion plans… were being formulated well before COVID-19 hit, and are based on assumptions about future business levels for 2021, 2022, 2023, and so on.” He goes on to recognize that, “for many industries, this year’s contraction will be seen as more of a temporary, but severe, loss of business than a permanent reduction.”

Still, what does this trend of expansion in the automotive industry in North America mean?

Dr. Chris Kuehl
IHEA Correspondent
Managing Director at Armanda Corporate Intelligence

Dr. Chris Kuehl, managing director at Armada Corporate Intelligence and IHEA’s executive economic summaries author, indicates that one must consider existing circumstances before one can understand the transition. For instance, setting up production sites abroad, Kuehl notes, typically has lower production costs, more than simply lower wages. In certain locations, one does not adhere to the same magnitude of regulations and restrictions that are implemented in the U.S. Additionally, access to raw materials is priority, and “setting up shop” closer to those foreign resources has helped to diminish production costs in the past. Lastly, Kuehl points out that thoughtful location of production centers abroad can open up new market opportunities for companies.

Looking at the current rise in production centers in the U.S. may mean three things, says Kuehl. First, the role of technology in capital distribution: “Technology and robotics [have] reduced the importance of cheap labor. The company using machines can worry about other factors. Now, they can think more about transportation costs and access to their market.”

Second, “working overseas is harder now than it was,” Kuehl comments. In previous years, more countries have engaged in protectionism, and the trade wars of last year did not make life any easier. Now, COVID-19 is just another blow to international supply chains, having “stranded some 40% of global cargo and basically crushed the whole concept of JIT [just-in-time production system].”

Jason Orosz
President
Nitrex Heat Treating Services

This current disruption in the economy cannot be minimized. Orosz states that the current economic climate has impacted how capital is deployed, and can occur in construction being delayed, or perhaps firms holding their cash for any future, COVID-19-related disturbances.

And third: the new trend of “mass customization.” Instead of needing mass quantities of products being made cheaply — which drove the practice of “distance sourcing” — Kuehl highlights that the present “consumer wants infinite variety and specialization,” which, as it were “requires manufacturers be close to that market to understand what is needed and when.”

This trend of bringing supply-chains closer to home is cause for hope, though. “[I] think companies,” comments Orosz, “are optimistic that, going forward, an increasing portion of the supply chain for American multinationals will be U.S.-based vs. what may have been seen over the past few decades. If this trend proves true, it will certainly trickle down into the local industrial heating sector.”

[blockquote author=”Jason Orosz, President of Nitrex Heat Treating Systems” style=”1″]”Over the long term, expansion plans for stable, forward thinking manufacturing companies will proceed mostly unchanged. Of course, there are notable exceptions… but I think situations like that are the exception, not the rule.”[/blockquote]

From left to right : Groundbreaking with Tom Cooper (Vice President of Business Development), Bill Walter (Facility Manager), and Raja Gumber (Senior Account Manager)

Considering present events, Orosz notes that “over the long term, expansion plans for stable, forward thinking manufacturing companies will proceed mostly unchanged. Of course, there are notable exceptions like the passenger aerospace industry whose supply chain will be impacted for a number of years, but I think situations like that are the exception, not the rule.”

“Our expansion in Aurora is on track,” Orosz continues, as an anecdote to his point, “and we expect it to be operational mid-2021. Our main goals are to increase our overall production capacity and install the latest in new technology to ensure that the services we can offer our customers are on the leading edge of what’s possible metallurgically.”

Hope is the often idealized maxim of many societies: “Hope is the thing with feathers,” “we hope in the things unseen,” “our greatest glory is not in never falling, but in rising every time we fall.” But in times of crisis, how many of us choose to do the hard and essential thing: hope?

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IHEA Monthly Economic Report: Continued Climb and Steady Improvement

August 31, 2020 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

"There is one positive aspect when it comes to a dramatic drop as experienced in March and April of this year. When one has fallen that far there is nowhere to go but up! Since then there has been a steady improvement in almost every category." When one considers the challenging year 2020 has been thus far, and the dramatic hit the U.S. economy has taken due to the pandemic, this encouraging opening from the Industrial Heating Equipment Association’s (IHEA) Executive Economic Summary for the month of July is the bolstering news we all need to hear.

The report states, "The progress that has been made thus far has been contingent on several factors. The first is that many businesses have engaged in rebuilding their inventories in anticipation of an eventual economic recovery...hopes lie in a rebound by the fourth quarter. The second major motivator for recovery has been the willingness of the consumer to return to old habits as far as consumption. This has been a mixed experience as there has been some return to those old habits, but there have also been many new habits formed and these have all had their impact on business."

An uptick is evidenced in all but one of the measures and "even this showed only a very slight decline from the month prior." The summary also reports that "Of the twelve index readings tracked, all but one trended positively and in some cases the numbers registered this month were better than they have been in over a year."

The numbers have not been this high in well over a year and suggests that there is considerable optimism for the future. (Photo source: IHEA)

The summary shared, "The more interesting data was found in those categories that seemed to have fully recovered and even exceeded levels seen earlier this year and at the end of 2019. The New Orders Index from the Purchasing Managers’ Index was back to the 60s and that is a level that has not been seen in over a year. Given that the new orders sub-index is the forward looking part of the overall PMI, it bodes well for the recovery at the end of the year." Other areas that showed a jump was in transportation that always "provides some confidence about the future," the parcel delivery sector (not those tied to imports or exports, however), and the metals market, especially copper and aluminum. Lastly, "The production indicators such as durable goods and factory orders have shown progress as business tries to rebuild inventory levels but there is ongoing concern regarding new demand."

The price of metal commodities have been rising. (Photo source: IHEA)

Of those indices that trended positively, "the majority remain distant from the readings that dominated at the start of last year." However, the data shows "a solid recovery in many areas." Albeit, it will take time before you can describe it as robust.

Steel consumption was the only reading that did not trend upward, however, it still was stable and looked similar to the previous few months.

The summary concludes, "The bottom line is that there is resilience in the economy despite the trials of the last few months. It now all depends on whether the pandemic necessitates a wider crackdown and a resumption of the conditions that collapsed the economy in the first place."

The report is available to IHEA member companies. For membership information, and a full copy of the 12-page report, contact Anne Goyer, Executive Director of the Industrial Heating Equipment Association (IHEA). Email Anne by clicking here.

IHEA Monthly Economic Report: Continued Climb and Steady Improvement Read More »

IHEA Monthly Economic Report: Robust Growth and Significant Gains

July 27, 2020 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

"It may not be time to start dancing in the streets, but the news this month is certainly a stark contrast from what it was last month." This note of encouragement begins the Industrial Heating Equipment Association’s (IHEA) Executive Economic Summary for the month of June 2020. The report continues, "Of the eleven indicators we watch, there were nine trending in a positive direction and not by a narrow margin. This was robust growth and significant gains."

The common theme among the nine indices reporting a positive trending was that "The lockdown was lifted and business was allowed to resume. The expectation was near universal and proved to be accurate. The vast majority of businesses promptly reopened to the degree they were able and that varied with the sector. The majority of the manufacturing community was able to resume operations with minimal adjustment."

The recovery in automobile sales is impressive, but it will take awhile to offset the decline of the last few months. The summary explains how vital the health of the auto sector is to the overall economy: "It is hard to overestimate the importance of the overall auto sector to the health of the greater economy. It is not just the thousands of jobs in the assembly plants but the tens of thousands of jobs in the companies that supply the parts and assemblies. Not to mention the jobs in the dealerships, the service operations, the people in the insurance and financing communities, the marketing people and the guys that work the car wash. It is a massive economic engine and that is what led to the old phrase 'What’s good for GM is good for the nation.'"

The recovery in vehicle sales has been impressive.

The Purchasing Managers' Index also reflected significant gains. Last month it dropped to the 30s, which is the lowest it had been since its inception. The rebound was expected as the lockdown restrictions were loosened, however, it was much stronger than anticipated. The report explains, "The fact that this is coming from the more future oriented part of the index is also encouraging. This indicates there is more confidence in the future as the assumption is that there will be a further return to normal business operations. It is also an indication that new orders have been arriving in a variety of sectors as almost all of the measured categories saw an improvement. The notable exceptions have been aerospace and sectors tied to hospitality and travel in general."

The Purchasing Managers’ Index jumped back into positive territory in a big way.

The two negative readings were in capital investment and steel consumption. The summary cites, "The desire to invest in either new machinery or expansion is still very low as the future of the rebound remains in question. Most companies have been working off their inventory and have not needed to add anything – there is still plenty of slack. The investment outlook remains cautious. Steel consumption remains down as there has been a collapse in public sector activity and the commercial construction sector has not figured out demand as [of] yet. The vehicle sector is growing again, but carmakers are still working off their old inventory."

Reminding readers that the readings are still worse than they were before the pandemic and lockdown caused the economy to tumble, the summary states, "But the fact that a reversal has begun promises some continued expansion." A caution is offered, however, because "the economy remains in uncharted territory" due to the fact that this hasn't been a "normal recession."

Bottom line: There is hope. We'll take it.

IHEA Monthly Economic Report: Robust Growth and Significant Gains Read More »

China Exclusion Request Granted

July 13, 2020 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS, MANUFACTURING HEAT TREAT, OP-ED

Recently, the United States imposed a 25% tariff on thousands of products from China, but permitted U.S. companies to request an exclusion from paying tariffs. In this article, Omar Nashashibi, founding partner of The Franklin Partnership, LLC, and a resource of Industrial Heating Equipment Association (IHEA), explains the latest news regarding the exclusion and its relevance to structural components for industrial furnaces.

Omar Nashashibi,
Founding Partner,
The Franklin Partnership, LLC

The United States Trade Representative (USTR) has extended an exclusion for importers from paying a 25% tariff on industrial furnace components from China. The exclusion to the China Section 301 tariffs for structural components for industrial furnaces was extended in the Federal Register notice published on July 9, 2020 (85 FR 41267). The exclusion to the 25% tariffs, originally granted in July 2019 and set to expire on June 9, 2020, is now extended through December 31, 2020. The extension of the exclusion to industrial furnace components is one of twelve announced by USTR. Nearly 100 other products, including furnace casings, will see their tariff exclusions expire.

In July 2018, the United States imposed 25% tariffs on $34 billion worth of products imported from China (List 1). Of importance to the industrial heating industry, included in List 1 were parts of industrial electric furnaces and ovens as well as industrial induction or dielectric heating equipment (HTS 8514.90.80).

With this extension, all products meeting the description of “structural components for industrial furnaces” and are classified under the HTS code 8514.90.8000, will continue to be excluded from the 25% tariff. To claim the extended exclusion, importers must report the regular HTS code for the product, as well as the exclusion HTS code: 9903.88.52.

China Exclusion Request Granted Read More »

IHEA Monthly Economic Report: Don’t Be Faint of Heart; Rebound Coming

July 1, 2020 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

The latest Industrial Heating Equipment Association’s (IHEA) Executive Economic Summary begins, “The lockdown recession has been with us for over three months now, and there are few that have not experienced the impact.” How true are those words. But, be encouraged, “By most accounts this will be the bottom, and future reports will start to show slow improvement . . . there have been consistent assertions that economic growth will rebound by the third and fourth quarter.” Some may doubt the optimism, however, “there are some indications that such a forecast may be realistic.”

The indices share a consistent theme in that all show a decline “that are nearly a straight line down.” Yet, there is one notable exception: the data for the Credit Managers’ Index reveals the same severe decline, but with an upward trend at the end. The summary explains, “The index is divided into favorable and unfavorable categories from the perspective of a credit manager. The favorables include categories such as ‘sales,’ ‘applications for credit,’ ‘dollar collections’ and ‘amount of credit extended’. The unfavorables include ‘rejections of credit applications,’ ‘accounts out for collection,’ ‘disputes,’ ‘slow pays’ and ‘bankruptcies’.”

The decline that was evident in March and April was due “almost entirely to the collapse in the favorable data.” But in May, they improved substantially. Interestingly and optimistically, “Credit managers tend to think in the future as they are most concerned with what shape a debtor will be in when they are due to pay. If a company has 90 or 120 or 180 days to pay the credit manager is not going to worry about them until that time. The fact that they are getting a bit more confident now indicates that they are starting to see some positive developments down the road and not all that far away.”

The upward trend in the Credit Movement shows positive progression down the road in the not too distant future.

The other indices share a woeful tale with record setting declines. The report explains, “There is no mystery at all as to why this is the case as the lockdown was universal and sudden. There was no time at all for business or the consumer to prepare, and there have been very few options available since the declaration.” However, the U.S. Labor Department released the latest job numbers and there were expectations that the unemployment number would hit 20%, but in reality the number was 13.4%.

So, where does the economy go from here? The summary cites three factors that will come into play: First, the attitude of the consumer — “If there is to be a real rebound the consumer will have to want to resume their old behaviors and soon.” Second, the action of the government — “[This] has varied from state to state. Some have been eager to reopen and others have put off this resumption until into 2021.” Third, the course of the viral infection — this will drive the first two factors.

Buckle up, folks, the wild adventure continues!

IHEA Monthly Economic Report: Don’t Be Faint of Heart; Rebound Coming Read More »

IHEA Monthly Economic Report: Don’t Be Discouraged, Better Days Ahead, but Resilience Needed

June 4, 2020 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

The changes and current events occurring in our cities, states, country, and around the world are causing our heads to spin and our equilibriums to stagger. While information from the latest Industrial Heating Equipment Association’s (IHEA) Executive Economic Summary will come as no surprise for many, an unexpected, yet welcome projection will be sure to bring hope and encouragement to our weary spirits.

The report begins by explaining the incredible speed, fluidity, and “real time” fluctuations of information. “The data stream that informs the assessments we review each month has been affected right along with everything else in the economy. The changes have been taking place at a bewildering pace, outdated almost as soon as the data is collected.” Hence, because these numbers are so organic, “This set of numbers and graphs are only as accurate as they were a week or so [ago], and by now, they have all changed in significant ways.”

Despite the data pointing downward, almost universally, there are two of the twelve sectors assessed that have shown growth — steel consumption and capital investment. The summary states, “Steel consumption should be down given all the problems outlined in manufacturing and construction. There has been very little traditional demand for steel and that would lead one to expect deteriorating consumption. The slight uptick suggests that some users of steel are preparing for a return to higher prices down the road when there is an economic recovery and thus, they are trying to buy now while prices are low.”

Sectors buying steel now and storing it until they see their own demand start to recover.

The motivation behind the gain in the capital investment index has been similar to that of steel consumption. “Now is the time to invest in new equipment or even expanded facilities as the prices are very low and there is some willingness to deal. This is a pattern that is nearly always seen during recessions . . .”

In a recession, acquisition of capital goods and physically expanding facilities occurs.

As to the rest of the numbers, the report says, “The first and most important is that this is an artificial recession imposed by a lockdown strategy intended to address another issue. In the simplest of terms, the economic crisis is collateral damage in the war on the COVID 19 outbreak.”

But, as we conclude, there is optimism as we get a glimpse of, in the words of Paul Harvey, “the rest of the story.”

“There is a surprisingly level of confidence as far as the future is concerned. The analysts that have been looking at the expected progress of the economy, as well as the virus, still contend that we are in the midst of a “V” recession – one that falls very quickly but rebounds just as fast. The assertion is that there is enough pent up demand to drive consumer behavior, and this will encourage business to respond quickly, and that will mean they will bring the majority of their workforce back from their “furlough,” and that will encourage even more consumer activity. . . It all becomes a matter of timing and the resilience of the consumer.”

IHEA Monthly Economic Report: Don’t Be Discouraged, Better Days Ahead, but Resilience Needed Read More »

IHEA Monthly Economic Report: No Surprises Here

April 29, 2020 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS, MANUFACTURING HEAT TREAT NEWS

“It is the time to dare and endure.” Winston Churchill made that statement in 1940, and it is apropos today, as hopefully, many of us are coming to the end of the “stay at home” quarantine and will soon be free to roam again. It has also been said that it is during particularly difficult times where possibilities are mined and take flight. We will need those encouraging words in the days, months, and perhaps years ahead as evidenced in the latest Industrial Heating Equipment Association’s (IHEA) Executive Economic Summary. The report states, “This may well be the most distressing assessment of the U.S. (and global economy) since the recession of 2008. None of the bad news that follows will come as any surprise to anyone as we are all quite aware of the damage that has been caused by the reaction to the COVID 19 pandemic.”

The report explains the difference between the 2008-09 recession and that of 2020 – the current recession is an artificial one created by the forced shutdown of the economy. The U.S. enjoyed a robust economy and healthy job numbers at the beginning of the year. “The potential silver lining to all of this is that government … can reverse the process. The day that lockdowns are declared at an end, there will be recovery. Consumers will consume again, employers will hire again, producers will produce again. How much and how fast will be the prime questions.”

In the meantime, however, “Of the twelve indicators followed in this index, there are only four that are still trending in a positive direction and they will not be holding that distinction for long.” The durable goods numbers and factory orders numbers rose a little, but this only indicates there has been a delay in terms of industry response. The activity in the durable goods category is a lagging indicator. There has not yet been enough time for the reduction in activity to manifest in the numbers, i.e., airlines, heavy construction equipment, oil field machinery, farm equipment which have all taken major hits in decline.

Durable goods tracked a bit higher this month, however, be aware that its activity is a lagging indicator.

The summary continues, “The improvement in the transportation numbers may be a bit more realistic. There has been high demand in the parcel sector as everybody has been ordering things delivered.” The other sectors in transportation have not fared as well like ocean cargo, air freight, and the rail sector.

The transportation sector is showing some positive development.

The only other area that experienced a gain was in capacity utilization, “but that will shift as there is now considerably more slack in the system than was the case earlier.” Normally these numbers would reflect the pushes and pulls of supply and demand, but that process has been interrupted … and now almost every business has an overcapacity concern.

We are all living in a “waiting” mode anticipating the “all clear” proclamation. Then, as the summary report concludes, “Once some measure of control is achieved, the economy will be restarted, and then the focus will be on the speed of recovery.”

The report is available to IHEA member companies. For membership information and a full copy of the 12-page report, contact Anne Goyer, Executive Director of the Industrial Heating Equipment Association (IHEA). Email Anne by clicking here.

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Heat Treat Fringe Friday: It’s a Beautiful Day in Pittsburgh’s Neighborhood 91

April 3, 2020 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

Heat Treat Fringe Friday

Sometimes our editors find items that are not exactly "heat treat" but do deal with interesting developments in one of our four key markets: aerospace, automotive, medical, or energy. As we approach the weekend, today's Heat Treat Fringe Friday, Best of the Web post focuses on an interesting development in additive manufacturing.

The hometown of Mr. Rogers is getting a new additive manufacturing neighborhood. The Barnes Group Advisors (TBGA), a large independent advanced manufacturing engineering consultancy, has released an impact study revealing the overall economic benefits of an additive manufacturing production campus at Pittsburgh International Airport.

Christina Cassotis, CEO, Allegheny County Airport Authority (source: Pittsburgh International Airport)

While the Pittsburgh Airport's other modernization projects have ground to a halt in the wake of the COVID-19 pandemic, Neighborhood 91 has happily been able to continue pressing forward with trying to sign tenants and pursuing plans surrounding the master developer. Overall, according to Allegheny County Airport Authority CEO Christina Cassotis, "We are still seeing interest expressed in Neighborhood 91 from throughout the world."

An excerpt: "According to the study, the innovative industrial park at Pittsburgh International Airport will create nearly 6,000 jobs over the next decade and will generate about $2.2 billion in wages over that same time period. The authors note that Neighborhood 91 will act as a catalyst for additive manufacturing AM industrialization and innovation with the creation of a cost-efficient ecosystem and the collection of smart people."

To read more about this story, click here.

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IHEA’s Monthly Report: The Good Old Days

April 1, 2020 / FEATURED NEWS, HEAT TREAT ECONOMIC NEWS, MANUFACTURING HEAT TREAT

Automotive sales have been stable, which means the whole sector has been stable (Click image to enlarge)

February’s Industrial Heating Equipment Association’s (IHEA) Executive Economic Summary suggests, “The numbers revealed in this month’s index will someday be remembered as the ‘good old days.’ This will be the last version that can be termed “PCV” or pre-corona virus.” The report continues, “It will be important to look back on the last couple of months and remember that conditions looked pretty decent at the start of the year.”

The three indices that are trending positive include new automobile and light truck sales which reveal strongly that consumers favor their new vehicles. There was also a nice boost in steel consumption which suggests that there has been more construction activity in the public sector. Additionally, despite the threat, consumers remained active as factory orders were also up slightly.

While eight indices are trending downward, the summary reports, “The semi-good news is that several of the negative readings are only slight in that category.” The biggest declines were seen in “metal prices (and commodities in general) as well as capital expenditure, credit and transportation. The only one that really crashed hard was capital expenditure and that is partly due to the slump in manufacturing that started last year.”

The capacity utilization dip still registers in the high 70s (Click image to enlarge)

A little less dramatic in declines are the housing market, which still remains healthy although new home starts are down; and, capacity utilization, that has been sinking, but “is still not all that far off the pace considered normal.” The durable goods numbers and the data from the Purchasing Managers’ Index also slowed down, but not significantly.

“The next month will show drastic reductions in business activity in many sectors and the job losses will start to mount. The hope on the horizon is that COVID-19 behaves like others of its kind and starts to fade as the weather warms. If the worst of the impact is in March and April the recovery will be obvious by June and July.” states the report.

It is an uncertain time for everyone, and we can all resonate with this concluding thought, “It is hard to say what these numbers tell us. This is uncharted territory for the US.”

IHEA’s Monthly Report: The Good Old Days Read More »

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