Machine tool accessories prices rising

Of the 19 industries tracked here as manufacturers of equipment and tools used in factories, average prices went up in 11 industries, fell in 4, and were flat in 4 others.

03/01/2001


Of the 19 industries tracked here as manufacturers of equipment and tools used in factories, average prices went up in 11 industries, fell in 4, and were flat in 4 others. Despite the fact that most manufacturers (17 of 19) are enjoying stability in their direct manufacturing costs, producers of tools and equipment remain under pressure to hike prices.

Trying to figure out exactly which tools or equipment may cause plant engineers the biggest pricing headaches means we must delve down into an analysis of the products that each industry makes. Let's look at the machine tool accessories (SIC 3545) industry. Here, average industry prices rose 0.98% in the 12-mo period ending December 2000. When we look at the prices paid for the average machine tool accessory in December 2000 compared to December 1999, average industry prices actually rose 1.3%.

The problem in the machine tool accessories industry, as with many others, is that materials costs have taken a big turn upward. Consider this: in 2000, imported materials costs jumped 6.5% while domestic materials costs also rose 1.4%.

Price/cost/demand roundup

IndustrySICAverage Product Prices 1 Change, % During 12-Mo Ending...Sep 00Average Product Prices 1 Change, % During 12-Mo Ending...Dec 00Direct Mfg. Costs 2 and Margins Grade Costs are...GradeGrowth in U.S. End Markets 3 Change, % During 12-Mo Ending...Sep 00Growth in U.S. End Markets 3 Change, % During 12-Mo Ending... Dec 00


Other hand and edge tools


3423


1.05


1.04


Stable


C


6.70


6.11


Hand saws and saw blades


3425


0.24


0.41


Rising


C


4.97


4.15


Other hardware


3429


2.18


1.96


Stable


B


5.02


3.62


Other power transmission equipment


3568


1.23


1.07


Stable


A


6.41


5.73


Conveyors and conveying equipment


3535


1.16


1.13


Stable


A


5.64


7.39


Hoists, cranes, and monorails


3536


1.59


1.75


Stable


A


6.13


6.42


Industrial trucks and tractors


3537


0.76


1.20


Stable


C


7.27


8.90


Metal-cutting machine tools


3541


0.70


0.78


Stable


D


15.29


16.94


Machine tool accessories


3545


0.74


0.98


Stable


F


10.74


10.89


Power-driven hand tools


3546


0.20


0.22


Stable


D


4.30


3.62


Welding apparatus


3548


1.74


1.96


Rising


C


3.58


2.33


Pumps and pumping equipment


3561


1.63


1.63


Stable


A


4.49


3.98


Air and gas compressors


3563


1.20


1.20


Stable


C


4.49


3.98


Speed changers, drives, and gears


3566


2.03


2.11


Stable


B


6.41


5.73


Transformers


3612


2.86


2.32


Stable


C


31.72


33.14


Motors and generators


3621


0.04


0.24


Stable


F


23.77


23.16


Process control instruments


3823


1.04


1.10


Stable


C


0.39


-0.66


Fluid meters and counting devices


3824


1.65


2.64


Stable


C


0.39


-0.66


Instruments to measure electricity


3825


1.42


1.48


Stable


F-


49.52


52.61


1 Average product price changes are calculated from the producer price index for each 4-digit SIC (standard industrial classification) industry from the U.S. Bureau of Labor Statistics.

2 Analyses of each industry's direct manufacturing cost changes are from Thinking Cap Solutions, Inc.'s proprietary Industry Cost Escalation (ICE) model. The "grade" indicates that recent price/cost changes have produced record high (A+) margins to average margins (C) to record low (F-) margins for the average producer in an industry. Grades of A to A+ mean plant engineers may be able to strike a better bargain with suppliers and better control plant costs.

3 Growth in U.S. end markets data are from the ICE model and are estimates of output for the domestic end markets which purchase a given industry's products.

All data prepared and presented by Thinking Cap Solutions, Inc., Port Angeles, WA (telephone: 360-452-6159; e-mail: ebaatz@ice-alert.com).





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Save energy with automation; Process control system upgrades; Dispelling controll myths; Time-sensitive networking; Control system integration; Road to IANA
Additive manufacturing advancements; Machine vision enhances robotics; Fieldbus evolution; Process safety; Advice from System Integrators of the Year; Road to IANA
Salary and career survey: Benchmarks and advice; Designing controls; Remote data collection, historians; Control valve advances; Hannover Messe; Control Engineering International
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
click me