Lincolnshire, Illinois, January 3, 2006 - "In November, the
delinquency rate on machine tool leases was much lower than on home mortgages.
Shops are not booming but are uniformly in good financial shape," commented
Harry Moser, President of Agie Charmilles Corp.
The Agie Charmilles Machining
Business Activity Index was unchanged at 60 in November. The Index is created by
surveying machine tool users concerning their current business level versus
three months earlier (August '06). Any reading above 50 indicates that business
activity has improved. The Index was inaugurated in October 2004 and is the only
known monthly index of business in the U.S. machining industries. Business
activity was strongest in the EDM Job Shop sector and in the Central region.
Historical data is shown in Figure 1, and, along with a detailed breakdown of
results by geographic region and application/sector, is at
www.charmillesus.com/newsroom/bizindex.cfm.
The November 30 day delinquency
rate on machine tool leases was less than 2%, which is lower than the 4.7%
delinquency rate on home mortgages. The Agie Charmilles/USBEF Machining Industry
Financial Strength Index was 333, vs. 294 in October 2006, 370 in November 2005
and 55 in January 2002, the lowest reading on record. Any reading above 100
indicates that US Bancorp Equipment Finance's (USBEF's) machine tool lease
payment delinquencies (a good measure of liquidity and consistent profitability)
are at a rate below the average rate of 1990 to 1999. As profitability rises,
liquidity rises, delinquencies fall and the Index rises. Historical data is
shown in Figure 2 and is available at the Charmilles URL mentioned above.
The approximately 126,000
U.S. companies that use machine tools
have about 2 million machine tools and 750,000 to 1,000,000 directly related
employees (toolmakers, machinists, operators, programmers, etc.). Almost all
mid-size to large manufacturing companies use, and periodically purchase or
lease, machine tools. Thus, these indices give timely insight into the condition
of U.S. manufacturing. The Machining
Business Activity Index is a coincident indicator of this key manufacturing
sector. The Financial Strength lags business activity and leads capital
investment.
About Agie Charmilles
Corp.
About US Bancorp Equipment France
The Machine Tool Finance Group of US Bancorp Equipment Finance (USBEF) offers manufacturers and vendors, flexible and competitive lease financing for metal cutting, fabrication and plastics and wood manufacturing equipment. As a subsidiary of U.S. Bank, USBEF is one of the largest bank-affiliated equipment finance companies in the nation. Telephone (800) 255-8029 ext. 492.
###
MEDIA
CONTACTS:
Business Development Manager
847.913.5300
or
dgs Marketing Engineers®
Leslie Galbreath 317.813.2223
Latest from Today's Medical Developments
- Forkardt Hardinge strengthens market position with ATS Systems acquisition
- July is for learning – so drop in for this month’s second Manufacturing Lunch + Learn
- MMT expands capabilities with acquisition of Comco
- Essential strategies to protect your data
- TT Electronics achieves ISO 13485 medical certification at Mexicali EMS facility
- Boost productivity with Nidec's innovative MGC300
- Meet AEON: the future of humanoid robotics
- Okuma: Extraordinary Starts Where Limits End