CompositesWorld
Issue link: https://cw.epubxp.com/i/620463
JANUARY 2016 18 CompositesWorld GARDNER BUSINESS INDEX: COMPOSITES Production and employment improvements complement strong capital spending forecast. 70 60 50 40 30 » With a reading of 44.2, the Gardner Business Index in November 2015 showed that the US composites industry contracted for the seventh time in eight months. Te rate of contraction had remained virtually unchanged since August. New orders contracted for the ffth month in a row in November. Tat subindex was essentially unchanged for a third month after dropping signifcantly in August. Te production subindex also contracted for fve months in a row in November but improved that month to its highest level since July 2015. Te backlog index continued to contract in November at a signifcant rate. Te trend in backlogs indicated falling capacity utilization at composite fabrica- tors' facilities. By contrast, the employment subindex increased for the frst time since July 2015. Exports, however, continued to contract because of the strength of the US dollar during the past year. At the end of November, the export subindex had shown contraction at a generally accelerating rate throughout 2015. Supplier deliveries had lengthened in every month since the GBI survey for composites began in December 2011. But in November, they lengthened at their slowest rate since those frst GBI results were recorded. As November closed out, materials prices had increased at a signifcantly slower rate for four months; that subindex was at its lowest level since the survey began. Prices received decreased for the second month in a row. Tey also decreased at their fastest rate since the survey began. Te future business expectations subindex fell sharply in November. Expectations were at their lowest level since December 2012. Composites manufacturing plants in the US with more than 250 employees expanded for the third month in a row in November. Te rate of growth at these companies had been quite strong. But facilities with 100-249 employees contracted for the third time in four months, and facilities with 50-99 employees had a subindex below 40 for the third month in a row. Companies with 20-49 employees contracted for the ffth straight month, but their subindex was at its highest level in that fve-month period. Companies with fewer than 20 employees saw their subindex fall in November to its lowest level since July 2013. Regionally, the US composites business contracted every- where in November. Te North Central-West, the only region to grow in October, contracted at the slowest rate. It was closely followed by the North Central-East and West regions. Te South- east and Northeast contracted at a noticeably faster rate. Te US South Central subindex, which had deteriorated in the preceding months, fell to 31.6 in November. Future capital spending plans in November improved signif- cantly compared with the previous two months, increasing by nearly 100%. In November, they reached their second highest level since May 2015. However, spending plans were still below average and contracting, compared with the fgures from the same period one year earlier. November 2015 – 44.2 Steve Kline, Jr. is the director of market intelligence for Gardner Business Media Inc. (Cincinnati, OH, US), the publisher of CompositesWorld magazine. He began his career as a writing editor for another of the company's magazines before moving into his current role. Kline holds a BS in civil engineering from Vanderbilt University and an MBA from the University of Cincinnati. skline2@gardnerweb.com A GBI reading of >50.0 indicates expansion; values <50.0 indicate contraction. 60 50 40 40.6 46.0 35.3 50.9 New Orders Production Backlogs Employment Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 NO-15 44.2 GBI NOVEMBER Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15