United States Department of Commerce Section 232 Exclusion Requests Tracking

July 11, 2018

In case you were wondering how well the US Department of Commerce is taking care of the exclusion requests by American Metalworking companies, here’s some data.

 

0ver 98.9% of all requests for exclusions remain unprocessed!

Requests for exclusions for both steel and aluminum have less than a half of a percent chance of being approved- 0.35% for steel and 0.47% for aluminum.

Where else but government is this level of performance tolerated?

We will update this from time to time.

 

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Beryllium Standard Final Rule- Do You Machine Beryllium?

July 3, 2018

The 2017 final rule established new permissible exposure limits.

It also included provisions to protect employees from exposure to Beryllium, such as

  • requirements for exposure assessment,
  • methods for controlling exposure,
  • respiratory protection,
  • personal protective clothing and equipment,
  • housekeeping,
  • medical surveillance,
  • hazard communication,
  • recordkeeping 

Do you machine Beryllium in your shop?

Have you evaluated your compliance to the above 8 points of regulatory concern?

Do you know the key regulatory enforcement and compliance dates?

Beryllium Copper is not only used in electrical applications!

If your shop machines any of the following Beryllium Copper grades, it does apply to you:

Beryllium Coppers C17000, C17200, C17300, C17410, C17500, C17510

The rule applies to occupational exposure to Beryllium in all forms, compounds, and mixtures in
general industry, construction, and shipyards.

  • Employers that are covered under the rule must use engineering and work practice controls to
    keep exposures at or below the PELs.
  • Engineering controls include using process isolation, ventilated enclosures, or local
    exhaust ventilation to keep beryllium from being dispersed throughout a work area.
  •  Examples of work practices to control beryllium exposures include keeping surfaces
    clean by using a HEPA-filtered vacuum or by wetting down dust before sweeping it up.
  •  If engineering and work practice controls cannot keep exposures at or below the PEL,
    employers must provide respiratory protection to affected employees.

PMPA is providing members with sensemaking regarding this final rule, compliance dates and strategies, and helpful links to better understand their responsibilities.

PMPA Beryllium Final Rule Members Only

Photo of VR38 Nissan GTR Beryllium Copper Valve Seats courtesy of Fast Forward Race Engines on Facebook

Not a PMPA member? Contact Matthew  Hooper to learn more mhooper@pmpa.org

 

 


JUNE 2018 ISM PMI- Manufacturing Thrives Despite Tariffs and Trucking Challenges

July 2, 2018

Despite the uncertainty of the US Section 232 Tariffs on Steel and Aluminum, demonstrably higher steel prices, full employment, and trucking difficulties, US manufacturing is having a strong year, as evidenced by the June ISM PMI.

““The June PMI® registered 60.2 percent, an increase of 1.5 percentage points from the May reading of 58.7 percent… The Supplier Deliveries Index registered 68.2 percent, a 6.2 percentage point increase from the May reading of 62 percent… 

 “Demand remains strong, with the New Orders Index at 60 percent or above for the 14th straight month, and the Customers’ Inventories Index remaining low. The Backlog of Orders Index continued to expand, reading at 60 percent of higher for the third consecutive month. Consumption, described as production and employment, continues to expand in spite of labor, skill and material shortages.””- Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee

Manufacturing continues to thrive despite tariffs and trucking Issues according to ISM PMI for June 2018.

PMPA members have reported price increases for Steel and Aluminum as a result of the imposition of the Section 232 steel tariffs, with lead times for raw materials lengthening and growing more uncertain and base steel prices up by 20 percent since March.

Demonstrably higher steel prices…

Steel prices are at their highest level since the 2009 recession, and the difference between US prices and foreign steel prices are at a record differential  according to Steel Benchmarker.

Precision Machining Industry Sales in May second highest level on record. Our latest Business Trends Report for May 2018 showed our industry’s  sales at their second highest level ever. We remain strongly positive on outlook for our manufacturing industry, confirming the ISM PMI Report.

Second highest value ever- second only to the value for March 2018!

We continue to hear reports of issues in trucking industry, including loss of routine deliveries caused by the strict adoption of electronic logs and enforcement of driver time shortening the reach of mills for deliveries out of state.

There are more job openings than people to fill them according to the JOLTS report of the Bureau of Labor Statistics.

Manufacturing in Europe and China cooling. According to Reuters “Euro zone factory growth slowed to an 18-month low in June, slipping for the sixth month in a row amid widespread concerns about trade barriers and their impact on overall economic activity, a survey showed on Monday.”Euro zone factory growth slowed to an 18-month low in June.

“Growth in China’s manufacturing sector cooled slightly in June as firms faced rising input costs and a decline in export orders amid an escalating trade dispute with the United States, a private survey showed on Monday.” Growth in China manufacturing sector ebbs in June.

Bottom line:Despite the uncertainty, US manufacturing  is having a strong year, as evidenced by the June ISM PMI. This is in strong contrast to  pessimistic manufacturing activity readings from Europe and China which are not at all positive. And in spite of uncertainty and challenges we face from tariffs, trucking, employment, pricing and other issues.

ISM PMI June 2018 Announcement

Steel Benchmarker  Steel Price History

Graph Courtesy Calculated Risk Blog

PMPA Business Trends Report May 2018

Job Openings


PMPA Business Trends Index for MAY 2018- Second Highest Value EVER!

June 28, 2018

PMPA Business Trends Sales Index for May climbed to its second highest value ever as forward looking indicators for Sales, Lead Time, Employment and Profitability softened but remained positive.

Second only to the value for March 2018!

Our year to date average is 136, up 11 points or 8.8% over 2017’s year-end average of 125.

We are at 106% of where we were a year ago in May.

The FED reported that Industrial Production (IP) Industrial Production edged down 0.1 percent in May after rising
0.9 percent in April. Manufacturing production fell 0.7 percent in May, largely because truck assemblies were disrupted by
a major fire at a parts supplier. Excluding motor vehicles and parts, factory output moved down 0.2 percent.”

Our industry is clearly outperforming IP- they cannot make it until we produce the precision components needed.

The sentiment indicators while lower, still remain in positive territory, and are likely based on the realization that the summer is typically less demanding than the first quarter.

Full report available HERE


ISM PMI May 2018 at 58.7- Manufacturing Remains Solid

June 1, 2018

According to the just released Manufacturing ISM® Report On Business® “No industry reported a decrease in PMI® in May compared to April. Economic activity in the manufacturing sector expanded in May, and the overall economy grew for the 109th consecutive month; the May PMI® registered 58.7 percent, an increase of 1.4 percentage points from the April reading of 57.3 percent.” – Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. 

Here are the key points:

  • The May PMI® registered 58.7 percent, an increase of 1.4 percentage points from the April reading of 57.3 percent.
  • The New Orders Index registered 63.7 percent, an increase of 2.5 percentage points from the April reading of 61.2 percent.
  • The Production Index registered 61.5 percent, a 4.3 percentage point increase compared to the April reading of 57.2 percent.
  • The Employment Index registered 56.3 percent, an increase of 2.1 percentage points from the April reading of 54.2 percent. 
  • The Inventories Index registered 50.2 percent, a decrease of 2.7 percentage points from the April reading of 52.9 percent. 
  • Demand remains strong, with the New Orders Index at 60 or above for the 13th straight month, and the Customers’ Inventories Index remaining at very low levels.
  • The Backlog of Orders Index continued expanding, with its highest reading since April 2004, when it registered 66.5 percent.

Another solid month of manufacturing performance

Consumption, described as production and employment, continues to expand in the face of labor shortages,  skill shortages and both price and supply uncertainty on necessary material inputs, primarily driven by the Section 232 Tariffs.

Just as the national  anthem is a sign that the ball game is about to start, this ISM report is our signal that we need to start having price increase discussions with our customers.

The tariffs are here, and our inputs are all increasingly difficult to obtain and expensive.

 

Game on!

ISM PMI May 2018 

 

Calculated Risk Blog


April ISM PMI 57.3- Solid Report

May 1, 2018

Despite a drop of two points from 59.3 to 57.3, the April Institute for Supply Management Purchasing Managers Index (ISM-PMI) indicated continued solid, but slowing growth in the manufacturing sector. Of the 18 Manufacturing Industries, 17 reported growth in April. Demand remains robust, but the nation’s employment and supply chains continue to struggle- April 2018 ISM PMI, Timothy Fiore, Chair, ISM Manufacturing Business Survey Committee.

The April report noted declines in other indexes such as New Orders (down 2 points); Production Index (down 3.8 points); New Orders down 0.7 points); and he Employment index (down 3.1 points) compared to March. Prices  index was up 1.2 percent  from prior month, indicating the 26th consecutive month of gains.

The prices index is currently at its highest value since April 2011; 17 of 18 industry sectors reported price increases.

108th consecutive month of expansion for the overall economy according to ISM PMI for Manufacturing.

What is going on in manufacturing? Here are  a couple of comments from some of the ISM’s respondents:

  •  “Business is off the charts. This is causing many collateral issues: a tightening supply chain market and longer lead times. Subcontractors are trading capacity up, leading to a bidding war for the marginal capacity. Labor remains tight and getting tighter.” 
  • “[The] 232 and 301 tariffs are very concerning. Business planning is at a standstill until they are resolved. Significant amount of manpower [on planning and the like] being expended on these issues.”
  • “The recent steel tariffs have made it difficult to source material, and we have had to eliminate two products due to availability and cost of raw material.

PMPA’s March Business Trends Report just came in and showed a record high at 143 for sales. We look forward to seeing what our April report has in store.

Chart courtesy Calculated Risk Blog

ISM April PMI Report


In Like A Lion- March Business Trends Index Sets New Record

April 27, 2018

With 91 companies responding, the PMPA Business Trends Index for March 2018 increased 14 points or 10.8% over
February to 143, the highest value for the Business Trends Index EVER! At 143, the index is up 11.2 points or 8.5%
above the five-year average for the March sales index of 131.8. ”  – PMPA March 2018 Business Trends Report

All time high for Our Sales Index!

Sentiment indicators from our respondents remained high. PMPA members can get the full report here. Press can request a copy  – we’ll be happy to share.

Two of three months  in 2018 have set new records for sales. Our industry is outperforming five year averages by wide margins- up 8.5% for March.

Prospects for employment remain high in our shops, even as the national figures tout “full employment.”

If you know someone that is underemployed, or unemployed, the prospects for great careers in our precision manufacturing shops have really never looked better.

 

Lion

March 2018 PMPA Business Trends Report

Great Careers