“Stress cracks are defined as transverse or near transverse open crevices created when concentration of residual stresses exceed the
local yield strength at the temperature of crack formation. These stresses can be mechanically induced or attributable to extreme temperature differences and /or phase transformations. They can originate at almost any point in the manufacture of the steel.”– AISI Manual Detection, Classification and Elimination of Rod and Bar Surface Defects.
“With 79 companies responding, the PMPA Business Trends Index for June 2017 increased 5 points or 3.8% from May’s 130 to 135. This is the strongest level of shipments that we have seen in June, prior highs for June were 128 in 2015 and 2016. We continue to be optimistic for a strong performance for the industry for the balance of the year.”
The FED’s Industrial Production (IP) Index rose 0.4 percent in June for its fifth consecutive monthly increase.
Manufacturing output rose at an annual rate of 1.4 percent, a slightly slower increase than in the first quarter.
At 105.2 percent of its 2012 average, total industrial production in June was 2.0 percent above its year-earlier level.
The strength of our PMPA Business Trends Sales Index compared to that of the FED IP Indicator suggests that Industrial Production will continue to rise as companies use the products that we have shipped in excess of the IP demand in June. We remain positive for industry prospects, and note that our Sales Index is up almost 10% over last year’s full year average.
PMPA members can find the PMPA Business Trends Report HERE. Photo Credit Photo backstory
A strong ISM Report for June: The PMI Index increased 2.9 percent, New Orders Index up 4 percent, Production Index up 5.3 percent, and the Employment Index was up 3.7 percent over May.
Timothy R. Fiore, Chairman of ISM Manufacturing Business Survey Committee released this statement: “The June PMI® registered 57.8 percent, an increase of 2.9 percentage points from the May reading of 54.9 percent. The New Orders Index registered 63.5 percent, an increase of 4 percentage points from the May reading of 59.5 percent. The Production Index registered 62.4 percent, a 5.3 percentage point increase compared to the May reading of 57.1 percent. The Employment Index registered 57.2 percent, an increase of 3.7 percentage points from the May reading of 53.5 percent… Comments from the panel generally reflect expanding business conditions; with new orders, production, employment, backlog and exports all growing in June compared to May and with supplier deliveries and inventories struggling to keep up with the production pace.”
The consensus for the ISM PMI was to be up slightly at 55.1; the 57.8 actual index strongly outperformed analyst expectations.
That out-performance also aligned with the sentiment indicators from PMPA’s own Business Trends Report from May which had 82% of respondents expecting sales of precision machined products to remain level or increase…
Here is the long term ISM PMI graph courtesy of the Calculated Risk Blog
Recruiting the future workforce is at the forefront of the minds leading our shops today. Previously, I talked about how shops can open their doors to people within their communities. Another avenue is to provide specific activities and events that focus on students.