Subscribe to our free, weekly email newsletter!


CEMA sees reversal of fortune this year

By Patrick Burnson, Executive Editor
March 10, 2011

Just how strong is http://www.cemanet.org/the current economic recovery? Judging by the Conveyor Equipment Manufacturers Association’s (CEMA) 78th Annual Meeting in Palm Springs California last week, pretty good.

“While we can’t get too excited by the numbers we are seeing now, all indications are that we’ve turned the corner,” said CEMA president, Bill Pugh.

On hand to confirm that impression was Alan Beaulieu, president of ITR, an economic forecasting firm. As he has done at past meetings, Beaulieu presented a broad overview of global trends in manufacturing and distribution.

“If we see an increase in private sector hiring, the chance of a double-dip recession fades considerably,” he said. “But that means U.S. companies will have to generate 200,000 jobs per anum for the next 10 years.

And Beaulieu thinks that will happen for two reasons: banks are prepared to lend again, and interest rates are still low.

“More money is coming into the economy because the government is printing and borrowing more,” he said.

This observation mirrors one made by Modern Materials Handling research analysts who contend that equipment manufacturers are finally making long-term capital investments in new system upgrades again.

Noteworthy highlights from suvey results included the fact that the median amount of money spent by firms on conveyors and/or conveyor parts and accessories during the last 12 months was estimated to be $55,000.  Eighteen percent reported spending $500,000 or more.

At the same time, system reliability remains far and away the most important factor in purchase considerations.  However, the reputation of the equipment supplier and design flexibility are becoming increasingly relevant to buyers. 

Beaulieu told the CEMA gathering (the largest in recent years) that investment in human capital was also key to a rebuilding strategy.

“It’s time to hire now if there’s any skill gaps in your operation,” he said. “And while you should be ruthless when it comes to efficiency, you should concentrate on retaining the best workers. Indeed, if you care about the people who work for you , give them raises. Productivity is at stake.”

For related articles, please click here.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Last week, the United States Department of Transportation took further steps to address various issues identified in recent train accidents involving crude oil and ethanol shipped by rail. The announcement was made by DOT with other DOT agencies, including the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA).

Logistics Management Group News Editor Jeff Berman had an opportunity to interview Derek Leathers, President and Chief Operating Officer of Werner Enterprises, at this month's NASSTRAC Shippers Conference and Transportation Expo in Orlando. They discussed various aspects of the truckload market, including prices, fuel, and regulations.

During this webcast our presenters will apply the findings of the 23rd Annual Trends & Issues in Transportation and Logistics Study to the world of shipper-carrier decision making. They'll examine the primary aspects that will influence the future direction for shipper-carrier decision-making.

For February, the month for which most recent data is available, the SCI dropped to -1.0 from January’s 2.6, with FTR explaining that the short term positive impact from one-time adjustments for rapidly dropping diesel prices and the suspension of the 2013 motor carriers hours-of-service expires later this year.

Seasonally-adjusted (SA) for-hire truck tonnage in March was up 1.1 percent on the heels of a revised 2.8 percent (from 3.1 percent) February decline, with the SA index at 133.5 (2000=100). This is off 0.3 percent from the all-time high for the SA of 135.8 from January 2015 and is up 5 percent annually.

Article Topics

News · Materials Handling · Conveyors · CEMA · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA