Here are a few quotes from the economic report distributed by Steve Kline Jr. of Gardner publications. Steve tracks a ton of data related to the industry and often has great insights that he shares in Modern Machine Shop and in other Gardner publications. His latest includes…

February Machine Tool Sales

USMTC reported 733 units sold in February, which was the second lowest month on record (only surpassed by this past January). February’s unit sales were 61.54% lower than February 2008’s unit sales. This is the largest one month year over year change, beating out last month by 0.06 percentage points, in my database, which dates back to April 1965.

Like last month, my forecast was wildly off. My forecast was for 1,475 units to be sold. This put me off more than 100% for the second month in a row. So, I’ve adjusted my forecast for the rest of the year again. I don’t think anyone could have imagined the speed and depth of this contraction to this point but hopefully my new forecast will be a little more accurate.

Metalworking Business Index

With a reading of 37.3, the March MBI showed stabilization in the rate of contraction in the metalworking industry. The evidence for this is that the MBI has been at virtually the same level four of the last five months. This is a good sign because before the industry can turn around and resume growth the economic indicators must flatten, or bottom, out. Two other positive signs can be found in the new orders and production index. While both are still contracting, they have rebounded significantly from their lows in January 2009. The decreasing rate of contraction in new orders and production should help moderate the accelerating contractions in employment and backlog in future months. Material prices continue to contract at a faster rate while the prices received index seems to have bottomed out. In fact the prices received index has been above the material prices index for most of the past five months, indicating that improving profitability could be returning to metalworking facilities. And, the future business expectations index is at its highest level since September. In general, while the economy is still be in recession and it may last for most, if not all, of 2009, the MBI is pointing to the possibility that the industry has taken the necessary actions to adjust to a new reality and to reach a base from which it can grow.

http://www.gardnerweb.com/mbi/MBIResults.htm

I also received a positive article published in a Gardner e-mail referencing an emerging trend for manufacturing returning to the U.S.. It is a good read and a welcome change of tone. Here it is.

http://www.mmsonline.com/articles/second-thoughts-on-foreign-sourcing.aspx