Cautious optimism prevails for '99
By Staff -- Industrial Distribution, 1/1/1999
The outlook for 1999 among abrasives industry executives runs from cautious to buoyant.According to Industrial Market Information, Inc., national coated abrasives sales were expected to increase last year by about $200 million, or one percent, to $1.92 billion. Sales of bonded abrasives also were expected to rise by four percent last year to $898 million.
"We're a little concerned with the softening economy," says James Hanson, director of marketing for Worcester, Ma.-based Norton Co.'s engineered solutions division. "We think some segments in the arena will be softer than in 1998; it's heading that way."
Hanson sees weaker demand in the specialty steel business, a slowing in general metal fabrication and uncertainty for the automotive market, while aerospace should continue to be stable. He says the flood of steel imports especially harmed the U.S. stainless steel industry.
Others are more optimistic. John Sidebottom, president of the Coated Abrasives Fabricators Assn., believes the global economic problems that impacted many U.S. manufacturing sectors during the second half of 1998 missed the converter industry. Sidebottom says many abrasives converters are upbeat about opportunities to take market share away from other suppliers.
"We'll probably see another 10 to 20 percent growth for a lot of converters," he says. "The economy's been really good. I think everyone has a little wonder about what's going to happen in 1999 ... You just have to stay aggressive."
John Siskovic Sr., vice president at Strong Tool Co. in Euclid, Ohio, expects another strong year for his company, an abrasives and cutting tool specialist, which was acquired by JLK Direct Distribution in 1998.
"Our sales have been excellent," he says. "We've had a good year and exceeded our budget ... automotive dictates it and we feel '99 will be a good year also."
One key account for Strong Tool is a new Daimler Chrysler transmission plant in Indianapolis. He says the company's Gary, Ind. branch has seen the effects of foreign steel dumping, which hurt the area's steelmakers.
Still, "When talking with Chrysler and Ford, we're going to have a good year," he says.
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