I was very late in watching the NFPA economic update webcast but I finally did. And when I did, I was pleased by what I heard. The information was presented by Andrew Duguay of the Institute for Trends Research, ITR.
If you have ever attended the NFPA Industry and Economic Outlook Conference, you have probably heard a presentation by ITR on the state of the fluid power industry and customer markets. Usually the presenter is Alan Beaulieu whom I have written about before.
The report was good as presented back in May. Most indicators are moving up, U.S. industrial production is rising, and NFPA total shipments are back to positive territory compared to a year earlier. Overall, U.S. industrial production is at a record high.
ITR has upgraded many manufacturing and machinery category forecasts. Housing and consumer spending could be a potential weakness looking forward. The logging and mining markets are expected to continue to be some of the strongest growth industries over the next three years.
Andrew showed a projection of overall fluid power growth of 5.4% for 2014, 0.6% for 2015, and 10.7% for 2016. This is encouraging news because there is no indication of a downturn or recession reflected in these numbers. I continue to be very optimistic about the near-term future for the fluid power industry.
If your company is a manufacturer of fluid power components, a fluid power distributor, or a supplier to the industry, consider joining the NFPA. You can get more information from their website by clicking here.