CompositesWorld
Issue link: https://cw.epubxp.com/i/930524
FEBRUARY 2018 14 CompositesWorld GARDNER BUSINESS INDEX: COMPOSITES FABRICATING December 2017 – 55.8 » Registering 55.8 in December, the Gardner Business Index (GBI): Composites Fabricating ended the month above its 2017 average of 55.1. e fourth quarter's readings were the year's highest and were well above the readings recorded during the same quarter a year earlier. Compared to December 2016, the Index this past December had increased approximately 8%. e Gardner Intelligence review of the underlying data for the month indicates that New Orders, Production and Employment lifted the Business Index higher while Exports, Supplier Deliveries and Backlogs held it back. However, only the reading for Backlogs indicated actual contraction (registering less than 50.0) during the month. roughout most of the year, Production and New orders were the major drivers of overall Index performance. During two of the three months in the fourth quarter, the readings for New Orders exceeded those for Production. Past examination of Gardner data suggests that when New Orders growth exceeds Production, manufacturers can expect continued industry growth. In addition, such instances typically result in a near immediate improvement in Backlogs, Exports or both. is has been proven out by both the sharp expansion in the Backlogs reading in November and the Exports reading in December. The Composites Fabricating Index closes 2017 on an up note 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 The 2017 surge will give 2018 a strong start The Composites Fabricating Index's December reading, up from November's, exceeded the calendar year average of 55.1. Trends within the data suggest that the composites fabricating industry will start off 2018 strongly. Strong demand indicated by key high readings Strong expansionary readings in the New Orders and Exports components of the Index suggest that export and domestic demand grew in the fourth quarter, pushing up Backlogs. Stay ahead of the curve with Gardner Intelligence. Visit the blog at gardnerintelligence.com or e-mail mguckes@gardnerweb.com PRESENTED BY