August Machine Tool Demand Up Sharply

[charrison]

linkage

U.S. machine tool demand in August rose sharply from a year earlier as manufacturers ratcheted-up purchases amid signs the economy is improving, two industry trade groups said in a report released on Sunday.


The American Machine Tool Distributors' Association (AMTDA) and the Association for Manufacturing Technology (AMT) said U.S. machine tool demand stood at $225.52 million in August, up 54.2 percent from $146.27 million in August 2003.

In the first eight months of 2004, machine tool demand stood at $1.779 billion, up 38.4 percent from $1.285 billion in the same 2003 period, according to the report.

....

August tool consumption also rose 6.4 percent from July when demand came in at $211.91 million.

Tool and Die sales can be used a leading indicator on the economy.

 

[conjur]

Good for corporate profits. But, manufacturing jobs dropped quite a bit last month.

 

[charrison]

Originally posted by: conjur
Good for corporate profits. But, manufacturing jobs dropped quite a bit last month.

I dont think you realize how significant this increase is. You dont buy tools unless you are planing to build something.

 

[AFB]

Originally posted by: charrison

Originally posted by: conjur
Good for corporate profits. But, manufacturing jobs dropped quite a bit last month.

I dont think you realize how significant this increase is. You dont buy tools unless you are planing to build something.

But you don't fire people either.

 

[Engineer]

Originally posted by: charrison

Originally posted by: conjur
Good for corporate profits. But, manufacturing jobs dropped quite a bit last month.

I dont think you realize how significant this increase is. You dont buy tools unless you are planing to build something.

Or, as I know working in a "tool shop", it could be model year changeovers, etc. Shifting from one form of production to a newer model.

The saddening thing about the increased tooling is that it could be simply replacing workers. Something I see on a daily basis!

Then again, it could be just a great start to a huge economic pickup.

Time will tell.

 

[conjur]

Originally posted by: charrison

Originally posted by: conjur
Good for corporate profits. But, manufacturing jobs dropped quite a bit last month.

I dont think you realize how significant this increase is. You dont buy tools unless you are planing to build something.

Right. And that translates to increased sales and that translates to higher corporate profit as the manufacturing jobs are being moved overseas where labor is cheaper.

Or, perhaps you missed the latest jobs numbers?

 

[Pennstate]

Is it domestic demand?

 

[Squisher]

Originally posted by: amdfanboy

Originally posted by: charrison

Originally posted by: conjur
Good for corporate profits. But, manufacturing jobs dropped quite a bit last month.

I dont think you realize how significant this increase is. You dont buy tools unless you are planing to build something.

But you don't fire people either.

Well, actually you could fire/layoff production workers. Leadtime for tooling builds is in months.

 

[charrison]

Originally posted by: Pennstate
Is it domestic demand?

The US has always been a worldwide toolmaker.

 

[CADsortaGUY]

Originally posted by: conjur

Originally posted by: charrison

Originally posted by: conjur
Good for corporate profits. But, manufacturing jobs dropped quite a bit last month.

I dont think you realize how significant this increase is. You dont buy tools unless you are planing to build something.

Right. And that translates to increased sales and that translates to higher corporate profit as the manufacturing jobs are being moved overseas where labor is cheaper.

Or, perhaps you missed the latest jobs numbers?

WTF? Are you really that "anti-business", conjur? Are you going McOwen on us? Sheesh. Increased sales are GOOD for America. Corporate profits are GOOD for America. Ofcourse you want to claim that all the jobs are being moved but that just isn't true.

Wow - I never realized that the left here had so much hate and resentment for the people who provide jobs and products for people.

CsG

 

[charrison]

Originally posted by: Engineer

Originally posted by: charrison

Originally posted by: conjur
Good for corporate profits. But, manufacturing jobs dropped quite a bit last month.

I dont think you realize how significant this increase is. You dont buy tools unless you are planing to build something.

The saddening thing about the increased tooling is that it could be simply replacing workers. Something I see on a daily basis!

Very valid comment. Technology is replacing the assembly line work. I would not be surprised if the manufacturing only required a couple percent of population in another 20 years(much like what happened to farmers 100 years ago).

 

[b0mbrman]

Originally posted by: charrison
Tool and Die sales can be used a leading indicator on the economy.

That, or restructuring toward a more capital-based economy...good for efficiency and the GDP and growth later on but not necessarily for jobs...at least in the short term.

[Edit] Oops. Looks like Engineer already touched on this...

 

[conjur]

Originally posted by: CADsortaGUY

Originally posted by: conjur
Right. And that translates to increased sales and that translates to higher corporate profit as the manufacturing jobs are being moved overseas where labor is cheaper.

Or, perhaps you missed the latest jobs numbers?

WTF? Are you really that "anti-business", conjur? Are you going McOwen on us? Sheesh. Increased sales are GOOD for America. Corporate profits are GOOD for America. Ofcourse you want to claim that all the jobs are being moved but that just isn't true.

Wow - I never realized that the left here had so much hate and resentment for the people who provide jobs and products for people.

CsG

Perhaps you've missed the fact that corporate profits are rather high right now but tax revenues are at the lowest % of GDP in over 40 years.

Perhaps you've missed the fact that American wage increases are lagging behind the rate of inflation?

Perhaps you've missed the fact that manufacturing jobs are moving overseas to much cheaper labor, thus increasing corporate profits more and benefiting only the investment class?

 

[umbrella39]

Well this is my area of business (my real job). In SE Michigan, the Machine Tool industry boomed in the late 90's. Lines were being built by Detroit Center Tool, Paslin, Kuka, Ingersol Rand, Pico, etc at a stagering pace and contract company's that staff during these busy times were making a mint. It was not uncommon to have between 150-200 workers employed at our accounts.

We would gladly welcome good news, like machine tool is picking up but unfortunetly, is has become far too easy to build these lines overseas and have them dis-assembled, transported, and re-assembled here at one of the Big 3 instead of having them build here by the American workers who made them all their cash in the late 90's. I will have to agree with Conjur on this, someone is still making great money in the machine tool industry here in Michigan, it is just not the workers any longer. For the most part, we only see 10-20 contractors in any given plant by all the staffing firms combined. That number used to be well into the 100's. Thankfully, I saw the writing on that wall in early 2000 and opened a side business that thrives, cuz the machine tool industry ain't cutting it any more. We will never see that kind of boom again I regret no matter who is president.

 

[charrison]

Originally posted by: umbrella39
Well this is my area of business (my real job). In SE Michigan, the Machine Tool industry boomed in the late 90's. Lines were being built by Detroit Center Tool, Paslin, Kuka, Ingersol Rand, Pico, etc at a stagering pace and contract company's that staff during these busy times were making a mint. It was not uncommon to have between 150-200 workers employed at our accounts.

We would gladly welcome good news, like machine tool is picking up but unfortunetly, is has become far too easy to build these lines overseas and have them dis-assembled, transported, and re-assembled here at one of the Big 3 instead of having them build here by the American workers who made them all their cash in the late 90's. I will have to agree with Conjur on this, someone is still making great money in the machine tool industry here in Michigan, it is just not the workers any longer. For the most part, we only see 10-20 contractors in any given plant by all the staffing firms combined. That number used to be well into the 100's. Thankfully, I saw the writing on that wall in early 2000 and opened a side business that thrives, cuz the machine tool industry ain't cutting it any more. We will never see that kind of boom again I regret no matter who is president.

Glad to hear you have a thriving business now. I hope your good fortune continues.

 

[umbrella39]

Originally posted by: charrison

Glad to hear you have a thriving business now. I hope your good fortune continues.

Thanks. It sucks though to have to work 2 jobs. I run the other from my house so it isn't so bad but it does cut into 'family time' a lot I hope they will understand someday.

 

[charrison]

Originally posted by: umbrella39

Originally posted by: charrison

Glad to hear you have a thriving business now. I hope your good fortune continues.

Thanks. It sucks though to have to work 2 jobs. I run the other from my house so it isn't so bad but it does cut into 'family time' a lot I hope they will understand someday.

I know the feeling, I have been there before. When you are working for yourself, you tend to be your own worst boss.

 

[conjur]

Originally posted by: umbrella39
Well this is my area of business (my real job). In SE Michigan, the Machine Tool industry boomed in the late 90's. Lines were being built by Detroit Center Tool, Paslin, Kuka, Ingersol Rand, Pico, etc at a stagering pace and contract company's that staff during these busy times were making a mint. It was not uncommon to have between 150-200 workers employed at our accounts.

We would gladly welcome good news, like machine tool is picking up but unfortunetly, is has become far too easy to build these lines overseas and have them dis-assembled, transported, and re-assembled here at one of the Big 3 instead of having them build here by the American workers who made them all their cash in the late 90's. I will have to agree with Conjur on this, someone is still making great money in the machine tool industry here in Michigan, it is just not the workers any longer. For the most part, we only see 10-20 contractors in any given plant by all the staffing firms combined. That number used to be well into the 100's. Thankfully, I saw the writing on that wall in early 2000 and opened a side business that thrives, cuz the machine tool industry ain't cutting it any more. We will never see that kind of boom again I regret no matter who is president.

I saw it happening in the 90s, myself. When I worked for a small consulting firm, we did a lot of work for Ford. Two plants we used to work with are now closed, the jobs having gone overseas.