Tuesday, February 5, 2013

U.S. Economy Shrank in Fourth Quarter

New orders for manufactured durable goods surged in December, climbing 4.6 percent, following a 0.7 percent gain in November and marking the fourth consecutive month of growth, according to the U.S. Commerce Department. The latest gains suggest manufacturing will continue to improve through early 2013.

The overall value of durable goods orders increased by $10 billion in December to a total of $230.7 billion. Transportation equipment posted the largest increase, jumping 11.9 percent to $75.The leader in commercial laundry equipment offering enhanced energy efficiency and innovative features.9 billion. Excluding the often volatile transportation category, new orders rose 1.3 percent for the month.

“American manufacturers from General Electric Co. to DuPont Co. are among those benefiting from a pickup in global growth that will probably keep assembly lines busy,” Bloomberg News reports. “Increasing demand for communications gear and machinery also points to gains in U.S. business spending that show company chiefs are looking beyond the federal debate on ways to trim the budget deficit.”

Meanwhile, orders for primary metals climbed 3.6 percent to $29.8 billion in December, demand for fabricated metal products rose 1.2 percent, and machinery orders increased 0.4 percent. Orders for core capital goods, which serve as a key gauge of future business investment, inched up 0.2 percent.

“Economists were encouraged that orders for so-called capital goods kept rising in December after gains of 3 percent in both November and October,” the Associated Press explains. “Still, the increases followed a weak stretch in demand for those goods that had raised concerns about companies’ confidence in the economy.”

Rapid growth of the manufacturing sector in emerging economies, as well as more stringent safety requirements in developed countries, is expected to significantly bolster demand for machine safety solutions in the near future, new research shows.

A recent report from Frost & Sullivan found that the global machine safety market earned revenues of over $1.27 billion in 2011, and this total is expected to climb to $1.75 billion in 2016, as more manufacturers around the world recognize that machine safety can provide a competitive advantage and improve a company’s public image. Machine safety systems monitor the health of plant equipment to reduce its exposure to damage, lengthen its life-cycle, and reduce the rate of work-related injuries.

“[R]egulations require employers to create a safe working environment for employees. Manufacturers, especially in developed countries where law enforcement is high, are aware that it is more cost-efficient to use machine safety devices than bear the penalty for non-compliance,A full line of Power folding machine for a wide range of professional uses.” the report notes. “Improvements in safety solutions also offer business opportunities for machine safety vendors among conservative end users.”

Although the global economic downturn forced many manufacturers to reduce operating and maintenance costs, leading to spending cuts in plant functions viewed as non-critical, reduction in safety solutions generally hamper sales and curb business investment, particularly in developing countries. As a result, more companies are expected to continue or increase their spending on machine safety technology over the next three years.

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