Gardner Business Media

2013

Gardner Research

Issue link: https://gbm.epubxp.com/i/184692

Contents of this Issue

Navigation

Page 1 of 7

2 0 1 4 C a p i t a l S p e n d i n g Survey & Forecast $7.442 Billion According to the 2014 Metalworking Capital Spending Survey by Gardner Research, U.S. metalworking facilities will spend $7.442 billion, an increase of almost 19%, on new metalcutting equipment next year. $6.040 2008 2009 2010 WHy tHe inCreaSe? $3.213 There are four factors that help to explain the forecasted increase in machine tool sales: $3.709 2011 2012 2013 2014 $6.322 1. CapaCity utilization $6.796 2. HiStoriCal perSpeCtive $6.263 3. reSHoring / Quality StandardS 4. CoSt BenefitS $7.442 Durable Goods Capacity Utilization vs. Real Machine Tool Sales gardner reSearCH 2014 Capital Spending Survey & Forcast 10 83 9 80 8 77 7 Jan-13 Jan-11 Jan-07 Jan-09 Jan-05 Jan-01 Jan-03 Jan-97 Jan-99 Jan-95 Jan-91 Jan-93 Jan-87 Jan-89 Jan-85 Jan-83 Jan-79 0 Jan-81 56 Jan-75 1 Jan-77 59 Jan-73 2 Jan-71 3 62 Jan-67 65 Jan-69 4 Jan-65 68 Jan-61 5 Jan-63 6 Jan-57 74 71 Jan-59 Durable Goods Capacity Utilization Forecasted operating capacity is 77%. Capacity utilization is the number one leading indicator for machine tool sales. Changes in capacity utilization tend to lead changes in machine tool sales by about one year on average. According to Federal Reserve data, capacity utilization has generally been on the rise since October 2012 and is still at or above the most recent peak in July 2012. Based on our survey results capacity utilization is slightly higher than the most recent Federal Reserve estimates. Based on the trend in capacity utilization, machine tool sales should increase in 2014. 11 86 1. CapaCity utilization 12 89 Real Machine Tool Sales (billions of $) 92

Articles in this issue

view archives of Gardner Business Media - 2013