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.
Capital Expenditures for January were up significantlyDurable 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.
Ann Goyer, Executive Director of IHEA
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.
The Industrial Heating Equipment Association (IHEA) will present a new, one-day seminar which will focus on the recent changes to NFPA 86 Standard for Ovens and Furnaces. The NFPA 86 Updates Seminar will be held on Tuesday, May 14, at Fabricators & Manufacturers Association (FMA) in Elgin, Illinois, from 9:00 AM to 3:00 PM.
This class is an overview for those who are already familiar with NFPA 86 but want to understand the recent updates and the impact on their business. Noteworthy updates include changes to furnace heating systems; safety equipment and application; programmable logic controller systems; safety shutoff valves; safety controls and devices; and commissioning, operations, maintenance, inspection, testing, and auditing. IHEA instructors are industry experts and NFPA committee members that are directly involved in the development of the standard and revision process.
Registration fee includes a printed copy of the slides and the new 2019 NFPA 86 Standard for Ovens and Furnaces. For heat treaters not familiar with NFPA 86 or who need more in-depth instruction on the standard and how it applies to a shop’s operation, the full two-day Safety Standards and Codes Seminar will be held this September in Cleveland, Ohio. Watch for details on the IHEA website, www.ihea.org.
Registration is open for IHEA’s Fundamentals of Industrial Process Heating Online Learning Course that begins on April 15, 2019.
The course is ideal for students who wish to further their studies at home or work in a flexible web-based distance-learning format. It’s an affordable alternative to campus-based classes and allows students to go at their own pace. The program offers a vital tool to industrial process heating operators and users of all types of industrial heating equipment. Students learn safe and efficient operation of industrial heating equipment, how to reduce energy consumption, and ways to improve a company’s bottom-line.
The fundamentals course provides an overview of heat transfer, fuels and combustion, energy use, furnace design, refractories, automatic control, and atmospheres as applied to industrial process heating. For a complete listing of the topics covered visit www.ihea.org or click here.
Industry expert Jack Marino will lead students in this 6-week online course. Jack is a registered Professional Engineer with over 40 years’ experience in the heat processing business. He is a graduate of Rensselaer Polytechnic Institute with a bachelor’s degree in Aeronautical Engineering and has a master’s degree in Engineering Science from Penn State. Mr. Marino’s knowledge and experience offer invaluable resources that online students can access throughout the course.
IHEA will also offer an Advanced Industrial Process Heating course this fall. This course is a compliment to the Fundamentals of Industrial Process Heating and provides the student with an in-depth view of the control and efficient operation of industrial process heating equipment. Students will become familiar with a variety of oven, furnace, and kiln types used in industry.
Bob Sherlock CMO of Chief Outsiders will discuss “The Power of Value” at IHEA’s 90th Anniversary Annual Meeting in Sarasota, FL.
Registration has opened for the Industrial Heating Equipment Association 2019 Annual Meeting, where the organization will celebrate its 90th anniversary. The annual meeting, which this year will be 29 – May 1 at Lido Beach Resort in Sarasota, FL., provides plenty of opportunities to get involved with important industry-related developments while exploring new business contacts and growing relationships. provides plenty of opportunities to get involved with important industry-related developments while exploring new business contacts and growing relationships. IHEA members will enjoy the camaraderie created by the ever-popular social events and thought-provoking presentations.
The program will feature a dynamic presentation by Bob Sherlock, CMO of Chief Outsiders. Mr. Sherlock’s presentation, “The Power of Value,” will highlight why members should be paid for the value of their products and services rather than lowering prices to appease customers. Attendees will also hear from IHEA’s economist Chris Kuehl with his lively update on the economy, as well as a report from Omar Nashashibi from The Franklin Partnership, who lobbies in Washington D.C. on behalf of manufacturing trade associations. Mr. Nashashibi will offer insight to the government shutdown and latest developments on critical policies that will help companies plan for the unpredictable future.
IHEA members will gain valuable knowledge on cybersecurity and how to prolong the inevitable of being hacked. Chris Della Mora of HUB International Risk Services and James Moore of Goyer Management International team up to provide this critical session for anyone who uses the internet. The program also includes a presentation from IHEA member Scott Bishop with Alabama Power on the benefits of partnering with utility companies.
IHEA’s committees will meet in Sarasota as they continue to work on issues of importance to the membership and the industry at large. And the annual golf outing and beach games will provide the perfect social experience to round out the meeting agenda. Review the complete program and event details online here (or copy and paste: www.ihea.org/event/AM19).
Hotel reservations at the Lido Beach Resort can be made by clicking here. The group rate for junior suites is $209.00/night. Please book hotel reservations now to ensure you receive our group rate.
Photo caption: AM2019 Presentation – IHEA’s annual meeting presentations address timely topics and thought-provoking information for all members.
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.
IHEA PMI December 2018
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.
IHEA Factory Orders December 2018
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.
Ann Goyer, Executive Director of IHEA
To receive a complete copy of this month’s report, contact IHEA Executive Director, Anne Goyer, by email.
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.
New Orders were up significantly.
Factory Orders were down.
Credit Movement was positive.
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.
A Special Report from Heat Treat Today Publisher, Doug Glenn
Nearly 100 top level heat treat and finishing professionals have gathered in Atlanta to discuss future trends in the heat treating industry. The event kicked off last night with an opening reception at the Intercontinental Hotel in Buckhead, Georgia (see photographs at the bottom of this post). Representatives from Mexico, Europe, and the United States are present to hear what an excellent panel of speakers has to say about the future of heat treat as well as share ideas with each other. (Listen to Heat Treat Radio’s interview with heat treat consultant Thomas Wingens as he discusses future MegaTrends in the heat treat industry. Click here.)
Of note in today’s sessions is an opening keynote address by Dr. Irene Petrick from Intel Corporation on “Factories of the Future: What Does the Future Workforce Look Like?” Based on anecdotes from the attendees, the recruitment of skilled help is becoming a significant issue.
Dr. Irene Petrick, Intel Corporation, speaking on Factories of the Future: What Does the Future Workforce Look Like?The “tape rule” test has eliminated more potential employees than a drug test!
And not only recruitment but retaining good workers. Since heat treating is not considered a cutting-edge industry, it is difficult to recruit and retain. Passing a drug test is one obstacle, but one high-ranking executive suggested that there is an even more significant hurdle for new employees to pass, what he referred to as the “tape rule” test — being able to read and accurately add measurements from a tape rule. Doesn’t seem like a monumental test to pass, but according to this source, it has eliminated more candidates from employment than the drug test. There’s something to be said for listening in 3rd- and 4th-grade math class when the concept of common denominators is taught.
Another industry consultant commented on the increased demand for experienced and knowledgeable individuals to advise when it comes to owning and operating heat treat equipment. The need for hands-on training as well process education is widespread as a vast amount of knowledge is leaving the industry through retirement. Fortunately, for this consultant, business is very good due to this fact. More companies are needing his services.
To help locate a qualified heat treat consultant, Heat Treat Today has launched a new Heat Treat Consultants resource. The “official” launch will be in a few weeks, but you can get a sneak peak by clicking here.
Todd Grimm, T.A. Grimm & Associates speaking on Trends in Additive Manufacturing
Additive manufacturing will also be one of the topics covered today by Todd Grimm of T.A. Grimm & Associates. As one of the more disruptive manufacturing technologies in the last decade, additive manufacturing is a topic often covered within the webpages of Heat Treat Today. For a glimpse at some of the articles published in the recent past, click here.
For a complete list of ITPS presentations, click here.
We begins this month’s economic report with a special request: Please register and attend the International ThermProcess Summit (ITPS) in Atlanta next week, July 30-August 1. This event, sponsored by IHEA, is meant for high-level executives in the heat treating industry including manufacturers with in-house heat treat as well as industry suppliers and contract heat treaters. Click here for more information. Thank you. Now on to our report…
Transportation was up strongly in June. Source: IHEA Monthly Economic Report
This month’s Industrial Heating Equipment Association (www.ihea.org) economic summary report shows sustained growth in nearly all sectors. The report, issued monthly to key executives whose companies are members of IHEA, summarizes approximately 12 indicators determined to be important to the thermal processing market. These indices include metal prices, housing starts, durable goods orders, purchasing managers index, credit managers index, a transportation index, new car & light truck sales, as well as others. The 12-13 page report, provided to IHEA by The Armada Group, IHEA’s exclusive economic advisor, provides not just a summary of the index movements, but an in depth explanation of the factors affecting each index. The report has been a valuable tool for key executives in IHEA member companies.
Steel consumption was up significantly in June. Source: IHEA Economic Survey
This month’s report showed an increase in the transportation index, steel consumption, and housing starts. Flat this month were factory orders, durable goods, and capital expenditures, as well as the PMI and industrial capacity utilization. Tariffs, or the threat of tariffs, continue to loom large over the direction of the economy. It is speculated that steel consumption is up strongly due to preemptive purchases, purchases made by many manufactures in advance of what they consider will be significant tariff price hikes.
For a complete copy of the monthly report, please email Anne Goyer.
This is the third and final special report from the triennial mega-meeting hosted by the Metal Treating Institute (MTI) and the Industrial Heating Equipment Association (IHEA) and the pressing question that needs to be answered is: “Where do manufacturers with in-house heat treat departments find good training and troubleshooting resources?”
This three-day event with over 91 heat treat industry supplier companies represented and approximately 200 attendees addresses the “brain drain” topic we reported on in Monday’s special report (click here to read Monday’s post).
Pete Hushek, 2018 President of MTI, talks about heat treat training for manufacturers with in-house heat treat operations
Both organizations are offering training courses, both live and web-based, for manufacturers with in-house heat treat. Some of the specific courses are mentioned below. In addition to offering training, both organizations also offer memberships to these same companies.
For membership information, click on the appropriate links below:
For the Industrial Heating Equipment Association, click here.
For training, consider the following:
IHEA Training Opportunities
If you’re looking for comprehensive, face-to-face combustion training, consider attending IHEA’s Combustion Seminar. The next combustion seminar is scheduled for early October and a link to register will be up on the website (www.ihea.org) in the near future. You can also purchase a video recording of a recent Combustion Seminar by clicking here. The cost is $960 (less for IHEA members). The course includes the following (plus more):
chemistry and efficiency of combustion
types of industrial burners available and how they are applied for efficient operation
supply and control of the fuel and air for these systems including piping design and valve selection
flame safety requirements of combustion systems
process and ratio controls with exposure to micro-processor equipment
furnace pressure controls for operation and efficiency improvements
preheated combustion air and furnace recuperators
NOX and other emissions: what causes them and how to minimize them
infrared process heating overview and applications
IHEA also offers an Induction Webinar and a Safety Webinar for training your employees how to safely operate and work around heat treating equipment. The next iteration of these face-to-face seminars are scheduled for early October. Check back to IHEA’s website for exact details.
IHEA also offers a very comprehensive online training course which covers many of the fundamentals of heat treating. More information at https://www.ihea.org/events/event_list.asp.
MTI Training Opportunities
The MTI offers equally good training in its Online Academy (click here for more information). The course offering is broad and very professionally presented. The Online Academy comes at a very affordable price of $1,400-$2,800 per year for up to 10 “seats”.
The Academy for Heat Treaters has both technical and managerial content. With over 175 hours of training, there is a wide array of heat treat topics to help management and line personnel understand the technical aspects of heat treating as well as “think” like a heat treater.
Since its inception, the MTI Academy has held over 25,000 classes all across the world. It satisfies minimum training requirements for Nadcap, ISO, and most other certification bodies.
Sample MTI Certificate of Completion available for completing certain MTI Academy training courses.
Within the Academy, students can earn four different certificates:
Courses can be purchased individually or through the Academy Annual Corporate Subscription Program which provides unlimited use of all 175+ hours of training for a heat treat plant.
There’s More
The above listing of courses is not all that can be said about the offering from either organization. More can be found at each organization’s website or by contacting me directly with any questions. Click here to send me an email.
With the need for training being real, both of these organizations have well-developed educational and training programs that are worth pursuing.
See the first two Special Reports by Heat TreatTodaypublisher Doug Glenn here:
Special Report by Doug Glenn, Heat Treat Today Publisher
Doug Glenn, Publisher, Heat Treat Today
As mentioned in yesterday's special report, the Metal Treating Institute (MTI) and the Industrial Heating Equipment Association (IHEA) kicked off their combined triennial meeting yesterday in Scottsdale, Arizona, at the Talking Stick Resort.
For manufacturers with in-house heat treat departments, this event carries significance . . . even though it is not an event many (or any) of you might attend. It's at this event where the suppliers of your equipment, components, technology, and know-how update and hone their skills for helping you accomplish the heat treating you do every day.
Because many of you in the aerospace, automotive, medical, and energy sectors may know and recognize some of the attendees at this event (and because we all like seeing OUR pictures online!), today's Special Report is a selection of photos taken at last night's Opening Reception. Enjoy today's Special Report and let your favorite vendor know you saw them on Heat Treat Today if/when you see them next.
Also, special thanks goes out to these three generous sponsors for helping to underwrite the cost of this event:
