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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