4 More Reasons The Precision Machining Industry Is Recovering

September 29, 2009

The August 2009 PMPA Business Trends Report increased to 73 in August up 3 points from July, up 4 points from June, and up 8 points from the May 2009 low of 65.  Three months in a row of upward movement!

"Only three months in a row of non negative sales growth"

"Only three months in a row of non negative sales growth"

Three consecutive months of improvement. Or as one of my more pessimistic colleagues puts it, ” three consecutive months of sales not getting any worse.

We’ll prefer our positive optimism to living in his dreary outlook anyday.

Here are our latest reasons we believe that the precision machining industry has begun its recovery based on approximately 100 members participating in our monthly PMPA Business Trends Report.

  1. Three consecutive months of sales increases.
  2. Over half  52% of respondents reported sales increases, and one third reported double digit sales increases.
  3. Average length of first shift climbed again to 38.2 hours. 
  4. 63 % of responding companies reported 40 hour or more average length of first shift.

The shops reporting serve the Medical, Automotive, Aerospace, Heavy Machinery, Truck, Construction Equipment, Food Service Equipment, and Military Markets.

PMPA members can see the latest Business Trends Report here.

Bonus good news  about the economy from the Fed Open Market Committee per  an email from Dr. Ken Mayland, Clearview Economics:

“…economic activity has picked up…” versus last meeting on 8/12: “…economic activity is leveling out.”  Yeah!  The economy is now recovering (not recovered).

Picture credit : http://www.itsallabouteeyore.awoodman.net/

 

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3 Reasons We Believe Precision Machining Industry Recovery Has Begun

August 19, 2009

The July 2009 PMPA Business Trends Report remained level at 69 in July. We were pleased to see that this index did not further erode in July.

This is a departure from both the seasonal trend of low sales in July and a departure from the declines in sales all this year (only 1 month out of 7,  March 2009,  showed an uptick). 

Here are three reasons we believe that the Precision Machining Industry’s recovery has begun.

  1. Sales have leveled off and did not decline further in July.
  2. Exactly half of all PMPA Business Trends Participants reported increases in sales for July. Almost one third reported double digit sales increases.
  3. Average length of first shift indicator climbed by 1.2 hours in July, first such increase all year. (The length of first shift has declined each month since January 2009 until July)

The shops reporting included those serving markets in Medical, Automotive, Aerospace, Heavy Machinery, as well as Trucks, Construction Equipment, Food Service, and Military.

Are we out of the dark tunnel yet? No.

You are here?

You are here?

But the  PMPA’s Monthly Business Trends Report data tells us that about half of us are seeing some light at the end of the tunnel.

PMPA members can see the PMPA Business Trends Report here.

Photo courtesy Blueridgecollargirl her August 8 2008 post gives perspective and is worth a read.

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