LIFTING CLEAN UP
• Flat lift ratings of
220 to 2,200 lbs.
• Push, hang and
Schrader International `` 205 Frazier Road, Altavista, VA 24517
800.288.1804 x8820 `` SchraderInternational.com
Couplers & Plugs (121 skus),
Air Compressors from
2HP to 30HP, electric,
gasoline or diesel (84 skus)
*Couplers & plugs are manufactured from bar stock;
air compressors are built with parts of foreign and
domestic manufacture in Altavista, Viginia USA.
“A couple of things are playing into this,” explains Holcomb.
“First, decreasing oil prices have caused buyers to slow down their
buying activity in anticipation of lower prices of raw materials in
a few weeks from now. But they can’t hold out very long because
they need inventories to keep production going. The second
factor is the West Coast docks slowdown is impacting the delivery of imported goods and, along with that, raw materials from
Exports, Imports & Prices
ISM’s New Export Orders Index registered 52 percent in December,
which is 3 percentage points lower than the 55 percent reported
in November. “Although exports are down 3 percentage points,
they are still growing for 25 consecutive months,” notes Holcomb.
“At this point, it’s a normal variation. I’m just glad to see exports
above 50 when you look at some of the headlines about Europe
and China. But the number does show confidence in U.S. manufactured goods.” ISM’s Imports Index registered 55 percent in
December, which is 1 percentage point lower than the 56 percent
reported in November. This month’s reading represents 23 consecutive months of growth in imports.
The ISM Prices Index registered 38. 5 percent in December, which
is a decrease of 6 percentage points compared to the November
reading. This is the second consecutive month that raw materials
prices have registered a decrease, with the Prices Index decreasing
a total of 15 percentage points over these two months. A Prices
Index above 49.7 percent, over time, is generally consistent with
an increase in the Bureau of Labor Statistics (BLS) Producer Price
Index for Intermediate Materials.
“Prices have gone down significantly for two months in a row,
but those are healthy decreases, largely, if not exclusively related
to oil reduction which ultimately impacts a lot of other things,”
explains Holcomb. “The positive here is that raw materials prices
are lower, which helps the margins of manufacturing companies.
The lower oil prices also result in less energy to run their plants, so
there’s a double benefit. On the flipside, the oil specific industry
group will ratchet down their spending and do some belt tighten-
ing until they sort things out.”
While activity slowed at the turn of the year, it seems clear that
the U.S. factory sector will likely remain on a moderate growth
track. “The port slowdown could influence factory sector perfor-
mance over the next few months or more, however. And, more
significantly, the weak economic outlook outside of the U.S. is
troubling for the export strength that U.S. goods producers have
come to increasingly rely on. Short-term performance issues in the
Eurozone, China, and Latin America, and a brewing crisis in Rus-
sia, will affect all goods production markets to some extent both
in terms of demand and pricing," concludes Waldman.
For more information on the Institute of Supply Management,