Economic Outlook

Well, another NFPA Industry & Economic Outlook Conference has been completed and those who attended have come away with some insight into what the economic future holds for the fluid power industry.

So, what does the near term future hold for our industry?  I came away with some optimism but mixed messages at best.  One economist called for a slower growth year for 2019 with, in my opinion, the key word being growth.  Even if 2019 is 1% or 2% better than 2018, then the fluid power economy is still expanding rather than contracting. 

Another very respected presenter called for 10% growth in 2018 overall and between 5% and 15% growth in 2019.  This is a big range but still very optimistic.  I always put a lot of faith into what economist Jim Meil has to say and at the conference this year, he too is calling for growth in the fluid power industry for 2019 but his figure for fluid power shipments overall was 7% growth.  Sounds good.

Much was made about the trade tariffs put in place by our government and they are an unknown factor thus far.  They may influence pricing and availability of materials and components in 2019.  A lot depends on how long they are in place and what the reactions are from our trading partners.

All in all, I came away with a fairly positive "economic outlook."  For more information, visit the NFPA Website.