CompositesWorld

NOV 2018

CompositesWorld

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NOVEMBER 2018 10 CompositesWorld GARDNER BUSINESS INDEX: COMPOSITES FABRICATING September 2018 — 58.4 » e GBI: Composites Fabricating Index extended its latest expansion run into rarely reached territory with a reading of 58.4 in September. e latest reading marks the third time in the Index's history during which the index has been on an upward trajectory that took it above a reading of 57. e latest reading is 6.2% higher than it was during the same month one year ago. Gardner Intelligence's review of the underlying data for the month indicates that the Index was pulled higher by supplier deliveries, backlog, production and new orders. e Index — calcu- lated as an average — was pulled lower by employment and exports. Among all components, backlogs expanded faster than all other components except for supplier deliveries. After new orders expansion peaked in March 2018, supplier deliveries and production were regularly the two fastest-expanding components of the Composites Index. At the same time, new orders expansion fell, indicating only that the monthly rate of growth of new orders was slowing. Since July's new order reading, however, new orders growth has rebounded. is has occurred despite the fact that exports have contracted since June 2018. e net effect appears to suggest that while export demand has slowed in the composites space during the second quarter of 2018 and early in the third, total demand for composites manufacturing is doing very well. New orders since mid-2015 have continued to cyclically improve. Composites Index expands into rarely seen territory 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 in a wide range of industries. Guckes received his BA in political science and economics from Kenyon College and his MBA from Ohio State University. mguckes@gardnerweb.com ABOUT THE AUTHOR New orders improve despite export weakness New orders readings have been improving along their long-run cyclical path since mid-2015. The latest readings indicate new order growth despite weakness in exports. Stay ahead of the curve with Gardner Intelligence. Visit the blog at gardnerintelligence.com or e-mail mguckes@gardnerweb.com PRESENTED BY GBI: Composites Fabricating GBI: Composites Fabricating — New Orders and Exports (3-month moving average) New Orders Exports Industry growth continues into second month The September Composites Fabricating reading extends the quickening growth rate for the industry for a second month. Rarely in the Composites Index's history has it pushed above a reading of 57.0.

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