CompositesWorld
Issue link: https://cw.epubxp.com/i/891910
NOVEMBER 2017 10 CompositesWorld GARDNER BUSINESS INDEX: COMPOSITES FABRICATING The Composites Fabricating Index registers 55.0 in September 2017. » Registering 55.0 for September, the Gardner Business Index (GBI): Composites Fabricating added another strong monthly reading to an already impressive 2017 for the US composites industry. e reading raised the 2017 Index average through September to 54.6, and brought the third quarter to a close, which also registered 54.6. For the year-to-date and 12-month periods, the Index was up, as September closed out, approximately 11% and 8%, respectively. A Gardner Intel- ligence review of the underlying data for the month indicated that Production, Supplier Deliveries, Employment and New Orders lifted the overall Index higher while Backlogs and Exports pulled the Index lower. e only component that showed contraction (<50.0) for September was Exports. Material Prices and Prices Received in the market continued to diverge through the third quarter of the year. e Material Prices subindex has moved higher than the subindex for Prices Received since the beginning of 2016, indicating that fabricators may not be passing some of their increasing costs onto their customers. Find out more about the Composites Fabricating Index at gardnerintelligence.com . US composites industry: Another strong quarter Michael Guckes is the chief economist for Gardner Intelligence, a division of Gardner Business Media (Cincinnati, OH US). He has performed economic analysis, modeling and forecasting work for nearly 20 years among a wide range of industries. Michael received his BA in political science and economics from Kenyon College and his MBA from The Ohio State University. mguckes@gardnerweb.com Material Prices - 3MMA Prices Received - 3MMA ABOUT THE AUTHOR Besting record highs set in 2014 The Composites Fabricating Index for the US composites industry is on track to register 2017 as the US composites industry's best year since before 2013 and is edging out the record set in 2014. Material Prices and Prices Received still divergent Index readings for Material Prices and Prices Received first indicated a divergence in 2016. Since then the rate of growth in input costs have continued to outpace gains in Prices Received. This could indicate that fabricators are experiencing or are at risk of experiencing profit-margin compression. Stay ahead of the curve with Gardner Intelligence. Visit the blog at gardnerintelligence.com or e-mail mguckes@gardnerweb.com PRESENTED BY GBI: Composites Fabrication Prices Received and Material Prices (3-Month Moving Average) 35 75 55 65 45 70 50 60 40 35 40 45 50 55 60 65 Jan 13 Jan 13 Jan 14 Jan 14 Jan 15 Jan 15 Jan 17 Jan 17 July 13 July 13 July 14 July 14 July 15 July 15 Jan 16 Jan 16 July 16 July 16 July 17 July 17 September 2017 GBI — 55.0