Strong demand may cause supply problems
Plant engineers may find that buying factory equipment and tools is getting a bit tougher these days.
Plant engineers may find that buying factory equipment and tools is getting a bit tougher these days. That's because with the economy so hot these days, many of the industries that make plant engineering equipment have been enjoying record-breaking demand. As a result, factory managers who buy the equipment may find suppliers are allocating product to their most loyal customers before taking new orders.
As the Plant Engineering price/cost/demand table (on opposite page) shows, end-market demand for instruments that measure electricity is particularly strong, up 48.14% in the 12-mo period ending September 2000 after growing at a 42.22% pace in the 12-mo period ending June 2000. The markets that buy transformers, motor and generators, and metal-cutting machine tools and motors and generators are also exceptionally strong, up 31.04%, 23.84% and 14.45%, respectively.
1Average 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.
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.
3Growth 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 industrys products. All data prepared and presented by Thinking Cap Solutions, Inc., Port Angeles, WA (telephone: 360-452-6159; e-mail: email@example.com).