Heat Treat Industry Economic News

9 of 11 Indices Up in IHEA Economic Report

/ 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.
PMI for September showed slight reductions, but is still strong overall.
Transportation Activity Index was slightly off for September, but still quite strong.
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.

Ann Goyer, Executive Director of IHEA
Ann Goyer, Executive Director of IHEA

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IHEA Monthly Economic Report: Economy Strong, Rising Prices Predicted

/ 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.

Ann Goyer, Executive Director of IHEA
Anne Goyer, Executive Director of IHEA

 

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

IHEA Monthly Reports Shows Strong Industrial Activity

/ 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.
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.
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.

Ann Goyer, Executive Director of IHEA
Ann Goyer, Executive Director of IHEA

IHEA Monthly Reports Shows Strong Industrial Activity Read More »

Last Day to Recognize Young Heat Treat Talent

/ FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

 

It’s well documented that there is a brain drain in manufacturing, including in the heat treat industry. Back in April, Heat Treat Today spoke with one company who estimated that up to 60 percent of the heat treat brains in their organization will retire within the next 10 years. Read more here: “One Fix for Heat Treat Brain Drain”

“This is not an isolated case. Baby boomers, who make up the vast majority of today’s heat treat industry brain trust, are beginning to retire and there are not enough metallurgists graduating from North American universities to fill the gap.” ~ Doug Glenn, Publisher of Heat Treat Today

It’s no surprise, then, that dozens of companies are taking advantage of the opportunity to nominate the young talent within their organization for Heat Treat Today‘s 40 Under 40 Class of 2018.

Today (Wednesday, August 15, 2018) is the last day. If you are looking for a way to recognize the young heat treating professional in your circles, Heat Treat Today is here to help. HTT’s 40 Under 40 Class of 2018 will bring prestige and recognition to your key young talent helping with retention appreciated by many Millennials, Gen Xs, and Gen Ys.

Who to nominate:

  • Nominate yourself (good!)
  • Nominate your colleagues (very good!)
  • Nominate your CUSTOMER (excellent!)

MAXIMUM EXPOSURE — Where it will appear:

How to nominate – 2 EASY STEPS:

1. Click the “Nominate” button to the right.

2. Follow the quick, easy instructions.

NOTE:

  • Each nomination should take no more than 5 minutes.
  • Multiple nominations allowed.
  • Nominate your customer and be recognized as their sponsor. Points!!

Nomination Deadline: TODAY, August 15, 2018

 

Questions/More Info:

 

The Editor: Editor@HeatTreatToday.com

 

Last Day to Recognize Young Heat Treat Talent Read More »

IHEA Indicies for May: 5 Up; 6 Down — Analysis Available

/ FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

The economic report issued monthly to IHEA member company key executives showed what economists are calling a “transition” month with 5 indices showing an upward trend and 6 showing a downward trend. Among those moving upward: metal prices, capacity utilization, PMI, credit managers index, and the transportation index. Those heading south: auto/light truck sales, new home starts, steel consumption, capital expenditures, durable goods shipments, and factory orders.

This monthly report, which averages 12 pages every month, provides not only useful trending data but also in-depth analysis of each index. IHEA’s proprietary economist provides the analysis with special emphasis on how these movements affect the heat treat and thermal processing industries.

For a full copy of the report, contact Anne Goyer by email (click here), Executive Vice President of the Industrial Heating Equipment Association (www.ihea.org).

Ann Goyer, Executive Director of IHEA
Ann Goyer, Executive Director of IHEA

 

 

 

 

 

 

 

 

IHEA Indicies for May: 5 Up; 6 Down — Analysis Available Read More »

IHEA Monthly Economic Indices: 8 Up; 4 Down

/ FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

Steel consumption, somewhat counter-intuitively, took a significant jump in April despite rising prices.

The rising price of steel along with three other negative moving indices were the only four downward-moving indices in May according to the authoritative monthly report issued by North America’s leading thermal processing equipment manufacturing association, the Industrial Heating Equipment Association (www.ihea.org).

Another negative indicator was the metal price index which reports on aluminum (up slightly), copper (steady), nickel (up slightly), and gold (steady). Given the anticipated and now-imposed steel and aluminum tariffs, it is uncertain what will happen to aluminum and steel prices although the report suggests that steel consumption was up not so much due to demand, but in anticipation of future shortages resulting from tariffs.

The PMI saw its fourth straight monthly decline.

Positive indices included industrial capacity utilization, new home starts, capital expenditures, and durable goods shipments.

Each month, the report details the movements and rationale behind 11-14 metal industry-specific indices. The full report is available to IHEA member companies.

To inquire about the full report, please contact Anne Goyer, Executive Director of IHEA by clicking here.

Ann Goyer, Executive Director of IHEA
Ann Goyer, Executive Director of IHEA

 

IHEA Monthly Economic Indices: 8 Up; 4 Down Read More »

UK Heat Treater Joins Trade Mission to Poland to Explore Aerospace Options

/ AEROSPACE HEAT TREAT, AEROSPACE HEAT TREAT NEWS, FEATURED NEWS

 

Source: BQLive.com

 

A group of aerospace firms or suppliers from the UK’s Midlands, including a heat treating company, recently traveled to Rzeszow, Poland, which has the largest aerospace cluster within the country, on a trade mission to tour local factories and explore potential partnerships.

 

Read more: “First Joint Aerospace Sector Trade Mission Visits Poland”

Photo credit: Express.com

UK Heat Treater Joins Trade Mission to Poland to Explore Aerospace Options Read More »

April IHEA Report: Good and Bad in the Numbers

/ FEATURED NEWS, HEAT TREAT ECONOMIC NEWS, MANUFACTURING HEAT TREAT

Following several months of nothing but relatively good news, this month’s IHEA Executive Economic Summary Report shows some numbers dipping. As Chris Kuehl, the economist behind the report, states in his monthly in-depth analysis, “This month there is good news in bad data and some bad news in the good data. It is not always about whether an index is climbing this month or not. Sometimes it is the overall trend line and how it compares to what it might have been some months ago.”

Auto and light truck sales continue to be strong.
Auto and light truck sales continue to be strong.

Every month, Dr. Kuehl, through IHEA, provides not only raw data that is of specific interest to the heat treating industry, but he also provides insightful analysis of what the numbers mean and why readers should care.

Dr. Chris Kuehl, economic analyst for IHEA, prepares the monthly IHEA Economic Trends Index.

The April report showed an increase in roughly half of the index numbers, including a surprisingly strong automobile and light truck sales index which, according to Kuehl, “continues to shock analysts as there is an assumption that the market is already saturated. It seems not to be the case as the consumer still has a desire for new wheels and if the current hike in gas prices accelerates there may soon be a new desire for those fuel sippers.”

Steel consumption continues to be week.
Steel consumption continues to be weak.

Along with auto and truck sales, some of the other indices that also continued to climb were industrial capacity utilization, capital expenditures, and durable goods shipments.

Falling indices included the purchasing managers index, new home starts, and steel consumption.

Anne Goyer, Executive Director of IHEA
Anne Goyer, Executive Director of IHEA

For a look at the complete report, contact Anne Goyer, Executive Director of the Industrial Heating Equipment Association (IHEA).

April IHEA Report: Good and Bad in the Numbers Read More »

One Fix for Heat Treat Brain Drain

/ FEATURED NEWS, HEAT TREAT ECONOMIC NEWS
Doug Glenn, Publisher, Heat Treat Today
Doug Glenn, Publisher, Heat Treat Today

A Special Report by Doug Glenn, Publisher

Manufacturers with in-house heat treat would benefit from what’s going on this week in Scottsdale, Arizona. As many of you have expressed, experts are leaving your organizations, and they are not easy to replace.

Heat Treat Today recently had a manufacturer in the mid-Atlantic region call to say, “We need help with stress relieving!” They had nowhere to turn so they called us. This same type of thing is happening time and time again across the country as those with in-house heat treat knowledge retire or move on to other companies.

Where does a manufacturer with in-house heat treat turn for heat treating knowledge?

Besides subscribing to one of Heat Treat Today‘s regular newsletters and visiting the website periodically, in-house heat treaters can tap into the resources that have converged on Scottsdale this week. Starting today at the Talking Stick Resort in Scottsdale, North America’s largest gathering of heat treating industry professionals are holding a combined meeting with two of the nation’s most prestigious thermal processing organizations:

Both of these organizations have separate semi-annual meetings, but once every 3 years they have a combined mega-meeting that brings in one of the largest gatherings of heat treat intelligence in all of North America. Companies from Canada, Mexico, and the USA are represented. This week’s meeting has drawn over 200 attendees and is full of educational sessions and networking opportunities to keep North America’s heat treat minds fresh and progressive.

Companies with in-house heat treat should consider tapping into one or both of these organizations to help them fill the brain drain that is happening and will continue to happen over the next decade.

Brain drain is a real phenomenon.

Heat Treat Today spoke with one company who estimated that up to 60 percent of the heat treat brains in their organization will retire within the next 10 years. This is not an isolated case. Baby boomers, who make up the vast majority of today’s heat treat industry brain trust, are beginning to retire and there are not enough metallurgists graduating from North American universities to fill the gap. Where are these manufacturers with in-house heat treat going to turn for specific, real-life heat treat help?

MTI CEO, Tom Morrison seen here with Mary and Doug Glenn of "Heat Treat Today" in Scottsdale, Arizona, as plans are being finalized for this week's big heat treat brain trust meeting.
MTI CEO, Tom Morrison takes a “selfie” with Heat Treat Today’s Mary and Doug Glenn in Scottsdale, Arizona, as plans are being finalized for this week’s big heat treat brain trust meeting.

Both MTI and IHEA encourage manufacturers with in-house heat treat to join their organizations. This would be a great place to start. Both of these organizations are capable of fielding nearly any heat treat-related questions and if they don’t know the answers, they know people who will know the answers.

Both organizations also provide excellent training programs targeted especially for manufacturers with in-house heat treat.

  • IHEA’s combustion, safety, and induction seminars are all highly rated and reasonably priced. For more information on these courses, click here.
  • MTI offers a wide spectrum of heat treating courses in their “Heat Treat Academy”. Some are free, some come at a price. Click here for more information on the Heat Treat Academy.

So, here is a challenge. If you are a manufacturer with in-house heat treat, and your company is located near Scottsdale, Arizona, I suggest you send one or more of your top heat treat personnel over to the Talking Stick hotel/resort/casino sometime on Tuesday or Wednesday to join in on the meetings of top heat treat minds. If you’re brave and compulsive enough to take the challenge, please send me an email and I’ll help make the arrangements.

Otherwise, think about joining one or both of these organizations.

Finally, you can always contact Heat Treat Today with any heat treat related problems or questions.

 

One Fix for Heat Treat Brain Drain Read More »

Orders for North American Steel, Aluminum on Rise

/ ALUMINUM PROCESSING NEWS, FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

 

Source: ThomasNet.com

 

Orders for North American steel and aluminum have been on the rise since speculative talk about restrictions on the import of metals began last year, according to Tony Uphoff at Thomasnet.com, and the recent recommendation from U.S. Commerce Department Secretary Wilbur Ross to impose steep tariffs on foreign steel and aluminum seems to support the motivation behind the trend. Alcoa, Arconic, AK Steel, U.S. Steel, and Nucor were among the U.S. steel and aluminum manufacturers which saw increased activity prior to the announcement.

Read more here about the specific percentages proposed and the U.S. output goal: “Proposed Steel & Aluminum Tariffs Bolster Domestic Metals Sourcing”.

 

Orders for North American Steel, Aluminum on Rise Read More »

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