Cincinnati, Ohio —U.S. durable goods manufacturers will invest nearly $15 billion in capital equipment in 2002. This represents an increase of nearly 10 percent over 2001 levels, according to the 2002 Gardner Research Capital Spending survey.

Gardner Research executive vice president Steve Kline said 2001 represented a 12-year low in spending.

In 2001, spending on machine tools, plastic processing machinery and other production equipment fell 30 to 50 percent.

"Even with the expected increase [this year], we will see spending levels well below the 2000 figures," said Kline. "The number of companies planning to increase their capital spending is about 28 percent.

"Even during the last recession in 1992 it only dropped to 38 percent."

Machine tool consumption is projected to increase to nearly $5.2 billion from a 2001 level of $4.5 billion. This represents more than a 20 percent decline over 2000 levels.

"A bellwether indicator of machine tool consumption and capital investments is capacity utilization," said Kline. "When it gets below 80 percent, it is bearish for capital spending."

Figures released in November by the Federal Reserve said capacity utilization was 74.7 percent in October. Kline said he expected 76 percent utilization for 2001, which is the lowest figure since 1991.