Machine tool growth slows in '98 after five years of gains
Midwest Industrial Tools' Allan Chartier: sales have slowed in early '99.
By Staff -- Industrial Distribution, 3/1/1999
MCLEAN, VA.--What goes up must come down, even in the machine tool industry. December's U.S. machine tool consumption tried to rally, falling only four percent after a tough November. However, December was still down 39 percent compared with year-ago levels, which put total consumption for 1998 at $7.6 billion, down 12 percent compared to 1997. According to the Assn. for Manufacturing Technology and the American Machine Tool Distributors' Assn., December usage was estimated at $482 million."After a five-year ride to the top, machine tool consumption cooled in 1998," says AMTDA president Ralph J. Nappi. "While the fundamental indicators for manufacturing are still sound, we will likely experience a sporadic year for capital equipment expenditures... throughout 1999."
Allan Chartier, president of Midwest Industrial Tools and outgoing chairman of AMTDA, says his firm had a good fourth quarter, but 1999 started slowly. He says that's true with other distributors he has spoken with.
"Everything we hear says the first half should be okay," says Chartier. "We still have good activity level, but it's just more difficult to get the customer to put their name on a [contract]. We still have customers looking at productivity improvements and lowering their cost of production; things are just moving a little slower."
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