- Q4 forecast equipment, software investment lowered to 4.1%
- Okuma, Siemens show students CNC manufacturing technology
- Seco Tools’ Manufacturing Day event draws Detroit area students
- Global manufacturing growth at lowest levels since July 2013
- Fluid power industry growth trend
- Medical life-saving success with 3D printing
Q4 forecast equipment, software investment lowered to 4.1%
Washington, D.C. – Investment in equipment and software is expected to grow 4.1% in 2015, according to the Q4 update to the 2015 Equipment Leasing & Finance U.S. economic outlook released by the Equipment Leasing & Finance Foundation. The Foundation lowered its forecast to 4.1%, down from 5% growth forecast in its Q3 Update to the 2015 Annual Outlook released in July. The new report predicts that after a slow start to the year, equipment investment will pick up during the second half of 2015.
Highlights from the study include:
- The U.S. economy is expected to grow 2.6% in 2015. GDP growth accelerated from 0.6% in Q1 2015 to 3.9% in Q2.
- Growth in equipment and software investment slowed from 3.9% in Q1 2015 to 1.7% in Q2, driven by sharp contractions in energy and railroad investment. Overall, a modest pickup in investment is forecast for Q3 and Q4, bringing annual investment growth to 4.1% in 2015, down from 6.0% in 2014.
- An interest rate hike is anticipated in late 2015 or early 2016. The prospect of higher interest rates could encourage businesses to “pull forward” investment and provide a boost to the equipment finance industry.
- The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor forecasts the following equipment investment activity:
- Agriculture machinery investment growth will likely remain weak or negative over the next three to six months.
- Construction machinery investment growth should remain solid over the next three to six months.
- Materials handling equipment investment growth should slow over the next three to six months.
- All other industrial equipment investment growth is likely to moderate over the next three to six months.
- Medical equipment investment growth is expected to stabilize or slow over the next three to six months.
- Mining and oilfield machinery investment will remain weak over the next three to six months.
- Aircraft investment growth may remain solid over the next three to six months.
- Ships and boats investment growth may stabilize or slow somewhat in the next three to six months.
- Railroad equipment investment growth is likely to remain weak over the next three to six months.
- Trucks investment growth could ease somewhat over the next three to six months.
- Computers investment growth rates should increase modestly over the next three to six months.
- Software investment growth will likely remain strong over the next three to six months.
The Q4 report is the third and final update to the 2015 Annual Outlook.
Source: The Equipment Leasing & Finance Foundation
Okuma, Siemens show students CNC manufacturing technology
Charlotte, North Carolina – Okuma America Corp. and Siemens partnered to host Manufacturing Day 2015 on Friday, Oct. 2, 2015, in Charlotte, North Carolina, at their respective facilities. Okuma opened their doors and welcomed 150 students from six area schools in North and South Carolina, showing them what CNC manufacturing is all about and the various careers in the industry. The students and teachers discovered how manufacturing touches almost every aspect of their daily life – from the clothes they wear to the food they eat.
Students visited multiple stations at Okuma, learning about innovative technology in the aerospace and automotive industries, robotics, engineering and the multitude of career path options. They experienced hands on interaction with robots and virtual reality technology and were able to see live cutting demonstrations on state-of-the-art CNC machine tools including one station that produced custom-cut coasters for each student.
Okuma’s Manufacturing Day was a group effort that included several of Okuma’s Partners in THINC members, CU-ICAR students (Clemson University International Center for Automotive Research) and more than 20% of Okuma’s staff to make this special daylong event a huge success.
Source: Okuma
Seco Tools’ Manufacturing Day event draws Detroit area students
Troy, Michigan – Committed to working with local schools to generate interest in manufacturing careers, Seco Tools welcomed 170 Detroit Metro high school students to the company’s North American headquarters on Friday, Oct. 2, 2015, for National Manufacturing Day 2015. Seco partnered with MSC Industrial Supply for the event, which highlighted the diverse job options available within the manufacturing industry.
Students attending Manufacturing Day at Seco selected from a variety of breakout sessions highlighting unique careers, including IT, engineering, CAD, distribution, production, and sales. Industry experts and college advisors were on hand to meet with students and answer questions about these career paths.
Students also received a tour of Seco’s technical center and custom tool production facility. Demonstrations of CNC machining and 3D printing equipment provided students with a snapshot of the latest technologies used in today’s manufacturing industry.
According to results from a skills gap study released earlier this year by the Manufacturing Institute and Deloitte, over the next decade nearly 3.5 million manufacturing jobs likely need to be filled. The skills gap, caused in part by an anticipated increase in manufacturing jobs due to economic expansion and baby boomer retirements, is expected to result in 2 million of those jobs going unfilled.
Global manufacturing growth at lowest levels since July 2013
September wasn’t the best month for global manufacturing.
While most Western nations continued to show signs of measured industrial expansion last month, growth rates continued to slide in many Asian countries, according to the latest monthly Manufacturing Purchasing Managers’ Index (PMI) figures from industry analysts Markit Economics.
U.S. growth improved slightly after a poor August with a PMI of 53.1 in September, still one of its lowest levels in two years and causing a slowdown in manufacturing employment as companies worried about the business outlook for the final quarter of the year.
Fluid power industry growth trend
The latest data published by the National Fluid Power Association (NFPA) shows industry shipments of fluid power products for August 2015 decreased 14.4% compared to August 2014, and decreased 5.6% when compared to last month. Mobile hydraulic, industrial hydraulic, and pneumatic shipments decreased in August 2015 when compared to August 2014. Mobile hydraulic, industrial hydraulic, and pneumatic shipments also decreased when compared to last month. These charts are drawn from data collected from more than 80 manufacturers of fluid power products by NFPA’s Confidential Shipment Statistics (CSS) program. Much more information is available to NFPA members, which allows them to better understand trends and anticipate change in their market and the customer markets they serve.
Source: NFPA