Published July 2014
By PMPA Staff
Together with its subsidiary company, Traub, Index Group is one of the world’s leading manufacturers of CNC turning machines.
Month: July 2014
Published July 2014
By Miles Free III
Precision manufacturing today is far different from the dirty factories that most people remember from the days of black and white television.
Update, The June SAAR for Auto sales is over 17 million: http://www.autonews.com/article/20140701/VIDEO/307019968/autonews-now-sales-hit-17-million-pace?cciid=email-autonews-annow&r=5668G6084245G8Y
“The June PMI® registered 55.3 percent, a decrease of 0.1 percentage point from May’s reading of 55.4 percent, indicating expansion in manufacturing for the 13th consecutive month. The New Orders Index registered 58.9 percent, an increase of 2 percentage points from the 56.9 percent reading in May, indicating growth in new orders for the 13th consecutive month. The Production Index registered 60 percent, 1 percentage point below the May reading of 61 percent. Employment grew for the 12th consecutive month, registering 52.8 percent, the same level of growth as reported in May. Inventories of raw materials remained at 53 percent, the same reading as reported in both May and April. The price of raw materials grew at a slower rate in June, registering 58 percent, down 2 percentage points from May.”
-Bradley J. Holcomb, ISM link
While the PMI dropped 0.1 from May, and production dropped 1.0% from May, New Orders increased by 2%. New orders that our industry wil lbe producing components for.
Why this is a positive sign for the economy:
“The June PMI® indicates growth for the 61st consecutive month in the overall economy, and indicates expansion in the manufacturing sector for the 13th consecutive month. The past relationship between the PMI® and the overall economy indicates that the average PMI® for January through June (54.0 percent) corresponds to a 3.6 percent increase in real gross domestic product (GDP) on an annualized basis. In addition, if the PMI® for June (55.3 percent) is annualized, it corresponds to a 4.0 percent increase in real GDP annually.”
15 markets reported growth in June: Furniture & Related Products; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Machinery; Fabricated Metal Products; Computer & Electronic Products; Transportation Equipment; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Apparel, Leather & Allied Products; Wood Products; Printing & Related Support Activities; Petroleum & Coal Products; Primary Metals; and Paper Products. We have highlighted those served by precision machining industry in Boldface Type.
On a related note, we see that North American Auto sales rate has remained over 16 million for two months now. Calculated Risk Blog
Automotive is one of the Precision Machining Industry’s most heavily served markets.
The June ISM PMI report bodes well indeed.
I was reminded of the possibility of heat stress in our shops when I started the car the other day.
Early in my career in the blast furnace casthouse and on the ore docks staying safe from the effects of high heat was a daily event.
On top of the coke plant batteries it was a minute by minute struggle.
While we do not face these same levels of heat in our precision machining shops per se, the summer can bring high, unaccustomed temperatures. Temps of over 100 degrees are easily attained in places with high solar gain and stagnant air.
Unloading trucks outside or doing external work on roofs or even landscaping can put even the most fit worker into some form of heat stress if precautions have not been taken.
Here is the OSHA pocket card for Heat Stress Awareness
Click here for link to the PDF
