I heard a lot of economic news and evaluation this week specifically regarding the fluid power industry and all of the markets served. I attended the 2016 Industry and Economic Outlook Conference presented by the National Fluid Power Association. What are my key takeaways and what does it all mean?
Well, let's start with the key takeaways
2016 has been a fairly soft year for all of fluid power with some negatives in mining and oil & gas dragging things down
US Industrial Production is low but growing and should grow through 2018
There is a possibility for inflation down the road
Brexit has had minimal effect on the world economy
The U.S. has once again become a great place to manufacturing all types of goods, machinery, and materials
2017 could be a good year for mobile hydraulics
Mining has been very depressed but could be showing a turnaround
The Chinese economy remains a concern for global economics
The U.S. construction industry has a good upside in 2017
2008-11 was the golden age for China and a new normal has sunken in
Without volume, China has a difficult time being profitable
The agriculture sector continues to over perform
The automotive industry is supporting the ISM optimism index
A low in commodities has been established
Most of the global economy will stay stable through 2018
Those are some of the themes I heard during a day and a half of listening. I may have missed or misinterpreted some of the points being made. There was a theme presented though and that is what I am reporting
What does all of this mean?
Well, I am not an economist but my take is that the industrial world is not great but not terrible and should stay that way for the next two years with a slight slant toward the positive.
This is still a great time to advertise to promote your company's brand awareness. Fluid Power World can help your company with that.