Conveyor industry: CEMA report says booked orders were down in July

While the July index is down 22% from June, it is up 49% from the July 2009 index of 88.
By Lorie King Rogers, Associate Editor
September 13, 2010 - MMH Editorial

In its latest monthly report released today, the Conveyor Equipment Manufacturers Association (CEMA) reported that its July 2010 Booked Orders Index was 131. Index in July is down 36 points or 22% from June 2010’s index of 167. While down from June, the July 2010 index represents an increase of 49% from the July 2009 Index of 88.

CEMA’s baseline calculation uses the year 1990 as a comparison.  Numbers to the right of the equation show the current state of the conveyor industry as compared to 1990.  Therefore, anything above 100 indicates growth; while anything less indicates a contraction in the industry.

The Twelve-Month Index for Booked Orders was 120 in July. Index in July represents an increase of 3% from June 2010’s Twelve-Month Index of 117.

The CEMA Billed Sales (shipments) Index was 142 in July. Index in July represents an increase of 6% from June 2010’s Index of 134. The July 2010 Index represents an increase of 22% from the July 2009 Index of 116.

The Twelve-Month Index for Billed Sales was 113 in July. Index in July represents an increase of 2% from June 2010’s Twelve-Month Index of 111.

So what does the July report say about the current state of the conveyor industry?  In an interview with Modern, Bob Reinfried, CEMA’s executive vice president, said, “The conveyor industry had a very, very good month in June.  It’s not that July was a disappointment, it was just the norm.  And it’s still better from where we were in July in 2009.”

Last month, Reinfried admitted that CEMA saw good numbers in June, but he also explained that it was too early to tell if we should expect the numbers to continue to climb.  It’s still too early, he said. 

CEMA will be holding its Fall meeting in Chicago on September 21 and 22, at which time Reinfried said he hopes to gather more information from member companies and wrap some context around the numbers.

Reinfried told Modern that CEMA is forecasting an increase of 2% to 3% for the overall North American conveyor market in 2010, and this month’s report coupled with next week’s meeting will help determine if that expectation is still on target.



About the Author

image
Lorie King Rogers
Associate Editor

Lorie King Rogers, associate editor, joined Modern in 2009 after working as a freelance writer for the Casebook issue and show daily at tradeshows. A graduate of Emerson College, she has also worked as an editor on Stock Car Racing Magazine.


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

The Institute for Supply Management’s (ISM) August edition of the Manufacturing Report on Business saw its PMI, the ISM’s index to measure growth, fall 1.6 percent to 51.1, following a 0.8 percent decline to 52.7 in July. Even with the relatively slow growth over the last two months, the PI has been at 50 or higher for 31 consecutive months.

Hackett observed in the new report that China’s economy has lost steam, with actual growth falling short of targeted rates, while the United States most recent second quarter GDP reading at 3.7 percent outpaced expected targets, even though it was negatively impacted by gains in manufacturing and retail inventories.

The proposed merger of Cosco and CSCL could spark further container consolidation

The average price dropped 4.7 cents to $2.514 per gallon, which now stands at the lowest weekly average price for diesel since July 2009, when it was at $2.542 the week of July 27, 2009, according to EIA data.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in June dropped 3.8 percent annually to $99.0 billion. This followed a 10.8 percent decline in May to $92.7 billion.

About the Author

Bob Heaney is a seasoned professional with over 25 years of distinguished leadership experience in research, analysis, and advisory roles in Supply Chain Engineering. Heaney’s coverage area within Aberdeen includes various elements of Supply Chain Execution (Transportation Management, Warehouse Management, Distributed Order Management and Supply Chain Visibility). Contact Bob Heaney

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