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Red indexes; white hot for some automation; blue electroindustry outlook

-- Control Engineering, 7/4/2008

Rosslyn, VA –  NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American conditions slipped to 37.5 in June, in the red by 10.5 points from a month ago. The NEMA index has trailed the 50-point threshold – a level indicative of deteriorating industry conditions – in each month since November 2007. Over that period, index values have moved in a relatively tight range between 27.3 and 48, NEMA says.

In separate announcements, white hot and strong areas of growth include drives, wireless, Ethernet, and process automation, according to various ARC Advisory Group reports on automation-related investments.

Meanwhile, the NEMA EBCI for future North American conditions extended its modest rebound to a second month as the index climbed 5.5 points. That performance came on top of the 2.5 point gain seen from April to May. Despite these recent signs of life though, June’s reading, at 37.5, painted a blue picture of the electroindustry business environment over the next half year, according to NEMA. The Electroindustry Business Confidence Index gauges the business confidence of the electroindustry in Asia, Europe, North America, and Latin America, and is based on the results of a monthly survey of senior managers at NEMA member companies. Those companies represent more than 80% of the electroindustry. NEMA, the trade association of choice for the electrical manufacturing industry, provides statistics on industrial controls, drives, sensors, terminal blocks, motor starters, and PLCs.

Happy Independence Day.

– Edited by Mark T. Hoske, editor in chief

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