The 2020 Mid-Year Economic Update_long

Day: December 8, 2008

Applied Industrial Acquires Cincinnati Transmission

Applied Industrial Technologies, Cleveland, OH, has acquired Cincinnati Transmission Company, a single location, regional distributor of power transmission and motion control products as well as gearbox repair solutions in Cincinnati, OH.
Cincinnati Transmission serves a broad range of customers, primarily OEMs, with bearings, v-belts, drives, electric motors, clutches, and conveying equipment.  
We're pleased to strengthen our presence in the greater Cincinnati / northern Kentucky area with the addition of Cincinnati Transmission," said Todd A. Barlett, vice president -Acquisitions and Global Business Development for Applied.
Applied Industrial is an industrial distributor with more than 475 facilities and 5,200 employee-associates across North ...

Conference Board Employment Trends Index Falls in November

The Conference Board Employment Trends Index declined further in November. The index fell to 102.9, down 1.6% from the October revised figure of 104.5, and down over 13% from a year ago.
 
"Thus far, the U.S. economy has lost 1.9 million jobs and the declines in the ETI suggest job losses could very well surpass 3 million by mid 2009,"said Gad Levanon, senior economist at The Conference Board. "The continued deterioration in the labor market will exert significant downward pressure on wages."
 
The 16-month long decline in the Employment Trends Index is seen in all eight of its components, most notably over the past six months in temporary-help hires and part-time workers for economic reasons, said Levanon.
 
The Employment Trends ...

Machine Tool Consumption Falls in October

October U.S. manufacturing technology consumption totaled $273.85 million, according to the Association for Manufacturing Technology and the American Machine Tool Distributors'Association. This total, as reported by companies participating in the USMTC program, was down 43.4% from September and down 32.3% from the total of $404.36 million reported for October 2007. With a year-to-date total of $3,802.41 million, 2008 is up 8.2% compared with 2007.

These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTC program.

October orders for manufacturing technology declined sharply from September, although year-to-date figures are still up over 2007,"said Robert K. Simpson, AMT president. "While orders ...

U.S. PT/MC Sales Unchanged in October

U.S. distributors'overall sales of PT/MC products were unchanged in October 2008 compared to September 2008, according to the latest month-end trend data released by the Power Transmission Distributors Association. When matched up against sales in the same month last year, sales in October 2008 were up by 7.4%. Accounts receivable collection days rose 2.3% since September 2008. The confidence index of U.S. distributors for October was also unchanged, remaining at 5.2 (on a 10-point scale).
 
Following double-digit sales growth in September 2008, Canadian distributors reported a 4.2% drop in sales in October 2008. Sales over the same period last year were up 2.5%. Accounts receivable collection days fell 5.1% compared to September 2008. For the third consecutive ...

MAPI Outlook: Manufacturing Recession ‘Intensifies’ in 3Q

The U.S. manufacturing recession continued unabated, and in fact intensified in the third quarter, and is now part of a global downturn, according to the Manufacturers Alliance/MAPI Quarterly Industrial Outlook -Third Quarter 2008, a report that analyzes 27 major industries.
 
"There was a sudden and acute acceleration of the decline in the industrial sector in September and October,"said Daniel J. Meckstroth, chief economist for the Manufacturers Alliance/MAPI and author of the analysis. "The vicious circle of financial crisis, decline in wealth, consumer spending cuts, and job loss continues to spiral into a severe recession—certainly the worst since the early 1980s."
 
On an annual basis, MAPI forecasts a decline in the ...