Posts Tagged ‘Economy’

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Robotics market shrinks; innovation continues

April 22nd, 2010
By: Dan Davis

The manufacturers and systems integrators that gathered for ABB's 2010 Robotic Technology Days, April 21-22, in Auburn Hills, Mich., showed up in good moods. The economy looks to be slowly emerging from the depths, and the technological innovations haven't slowed down during the slowdown.

The past 16 months have been very sobering for those involved in the robotics industry. It has slumped with the automotive and automotive components industries, where most robots are used in the U.S.

According to Paul Kellett, director of market analysis, Robotic Industry Association, Ann Arbor, Mich., shipments of industrial robots in 2009 decreased by more than 50 percent when compared to 2008, from 16,242 in 2008 to 7,864 in 2009. Shipments in early 2010 remain sluggish as well. (more...)

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'Our most-used machine is so old …

March 10th, 2010
By: Vicki Bell

... that the hydraulic cylinder doesn’t have a conventional seal, but uses rings of packing to slow the flow of hydraulic fluid.' 

This is just one of the comments we received yesterday in response to the March "Fabricating Update" e-newsletter that addressed companies' reluctance to invest in new equipment (and hire) until consumers resume spending, which they are reluctant to do given the current jobs situation.

We know that the economy has dampened fabricators’ desire and ability to purchase new machinery, even when their equipment may need replacing, so we thought we’d ask readers just how old their most-used machine is. (more...)

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The aftermath of exuberant times

February 12th, 2010
By: Dan Davis

Remember former Federal Reserve Board Chairman Alan Greenspan's comments about the U.S. economy being swept up in "irrational exuberance"? He used the phrase in 1996 to describe the stock market boom that might have been overvalued.

To be frank, I thought he had coined the phrase in the 2000s to describe the stock market expansion of recent times. It's amazing how one economic expansion reminds me of another.

Having said that, I'm afraid this recovery won't be similar to ones in recent memory. Manufacturing has to deal with the ramifications as it relates to its own period of "exuberance" in building up manufacturing capacity. (more...)

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I’ll know the recession has ended when…

January 27th, 2010
By: Vicki Bell

Tonight, President Barack Obama will take the podium to deliver his State of the Union address. In his preview of the speech, White House press secretary Robert Gibbs said that Obama hopes to use his message to “outline a hopeful track for our future.”

He also said, “The president is going to explain why he thinks the American people are angry and frustrated.” (more...)

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The need to adapt, no matter what happens

January 12th, 2010
By: Tim Heston

When I saw the words manufacturing and boom in one headline, I had to do a double take. An AllianceBernstein economist was especially optimistic, predicting that manufacturing may be gearing up for the biggest turnaround seen in 25 years.

"The evidence points to a 20 percent jump in output in the fourth quarter, as there finally has been an end to the inventory reduction process that has gripped the industry for most of the past two years," said Chris Kuehl, economist for the Fabricators & Manufacturers Association, in a Monday e-newsletter. "The key point for Alliance is that new order growth is far outstripping the current inventory levels, and that is a recipe for growth under most circumstances. If this trend holds, the economy is in for some solid numbers in the months ahead."

(more...)

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Clueless in Washington

January 6th, 2010
By: Vicki Bell

In December, "Fabricating Update" readers responded to the annual survey about business concerns. A recap of the survey findings will be published on thefabricator.com next week. In summary, the majority who responded said that business is picking up or they expect improvements soon. Fifteen percent are "barely hanging on." One percent have closed up shop.

Respondents who shared comments weighed in not only on their business concerns and how their companies are faring. They also blasted the government.

(more...)

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A welcome farewell to the aughts

January 4th, 2010
By: Tim Heston

A year ago Troy Berg wasn't in a good place.

"I knew in January that 2009 was gone. Never in the history of my business have I had to kiss off a year in January & Now that we're through 2009, the hard cuts have been made, we've made a little bit of money, and those of us who are still standing are looking at 2010 to be a better year."

A few days ago Berg told this to a reporter for the Wisconsin State Journal. Berg is president of Dane Manufacturing, a precision sheet metal shop in Dane, Wis., north of Madison. His comment pretty much sums up where metal fabricators stand today: battered and bruised, cautiously optimistic (an overused phrase these days), and ready to take on a better year. Some are expecting strong growth this year, some foresee it taking several years before sales volume gets back to 2007 and 2008 levels, but most agree we've started the recovery.
(more...)

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Returning to the slightly-worse-than-yesterday but still good ol' days

December 18th, 2009
By: Dan Davis

I read an interview with some highfalutin investment guy in the Dec. 21 issue of Fortune, and I'm starting to feel good about the future. It's not that he's bullish about the economy in the months to come, but that may not necessarily be all bad.

Mohamed El-Erian, who is CEO of an investment firm called Pimco, but who also was once in charge of steering Harvard University's $30 billion endowment for a short while, told his interviewer that U.S. consumers face considerable pressures related to high unemployment, underemployment, and rebuilding their nest eggs. He doesn't even mention the skyrocketing cost of health care and college tuition. The U.S. consumer of the late 1990s and early 2000s won't be showing up at the door of retailers anytime soon.

"& the ATM has disappeared—for a number of years we all used our houses as ATMs. So it's very difficult for the U.S. consumer to continue carrying not only the U.S. economy but also the rest of the world," he told the magazine.

(more...)

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The 12 months of oh-nine

December 16th, 2009
By: Vicki Bell

Here's a quick look back at a few highlights and lowlights from 2009—where we were when we began the year, where we are now, and what happened as the year unfolded, particularly when it comes to jobs. I wish you peace and a happy, healthy, and prosperous 2010.

The first month of oh-nine
Obama raised his hand
To begin his presidency
Based on "Yes, we can"

Unemployment stood at 7.2

(more...)

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The Catch 22 of collateral

December 15th, 2009
By: Tim Heston

Earlier this year, I landed at the Detroit airport en route to a conference. I got into my rental car, headed to the I-94 on-ramp, and then I saw it. There, next to the highway, was a big billboard advertising, of all things, a metal fabricator: "W Industries: Aerospace, Defense, Energy, Industrial."

Notice anything missing?

At the time, W Industries was making headlines. Local organizations were recognizing the company as one who successfully diversified outside automotive. And that was definitely something to flaunt in this economy.

But today, as the economy and credit markets get back on their feet, a wrinkle has been thrown into the diversity equation: the depreciation of assets. As Chris Kuehl, economist for the Fabricators & Manufacturers Association, Intl., wryly said during a keynote panel at this year's FABTECH Intl. & AWS Welding Show, "Now [the banks] are saying, 'Gosh, we expect you to pay the money back, and we're interested in collateral.'"

(more...)

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