There Are Many Indicators Used to Help Us Understand Where The Economy Is Going

There are many indicators used to help us understand where the economy is going and where it has come from. One area of interest is the commercial building and construction sector. This sector impacts a few key areas. First, when the commercial sector is building it is generally seen as a strong indicator that their business is growing. This growth of course fuels the development of new buildings, training facilities and plants. This growth can also be seen as an indicator of consumer confidence. After all consumer purchases are in the end what fuels development. When people purchase more companies expand to meet that need. How the commercial building sector impacts industrial machinery sales The chart below is a condensed report from the USA census report 962 – Construction Materials–Producer Price Indexes. Pulling out relevant metric for the roll former machine sectors shows us a few interesting things. One of the largest changes is within the gypsum (or drywall) manufacturing sector. This area dropped 18% and remains low. The heating equipment (or HVAC) sector saw a 13% increase and the metal door and sash sector say a 5% growth in production. Table 962. Construction Materials–Producer Price Indexes: 1990 to 2010 Commodity 2007 2008 2009 2010 Unit indicator Heating equipment 195.5 208.8 219.1 221.4 113.25% Metal doors, sash, and trim 197.3 205.6 209.2 208.1 105.47% Sheet metal products 181.2 192.5 186.8 190.2 104.97% Gypsum products 233.0 213.2 213.8 206.8 88.76% So what does this mean? In review of these indicators it would appear that there is more business in the repair renovation industry than the new construction sector. Why? When renovating a property drywall products are generally not replaced. These means products that support the use of drywall, such as steel studs and tracks, are not required. Companies manufacturing steel framing roll formers would also see a drop in orders. In contrast these same machinery manufacturers would see new growth in the metal door orders or at least see some growth in new tooling. Although it is obvious the USA is still in a serious slump some companies are reluctant to believe it's true. Looking at the numbers would hopefully help those manufacturers see the light and look to new horizons. This years Metalcon show in Chicago will also show us some insights in to the USA's outlook. This show over the past few years as seen and felt the impact of the worsen state of machine building in the USA. Source: Industrial Machinery News