Shuttle Mold System
Published

Total Mold Business Index for April 2005: 51.2

Activity levels for North American mold makers were little changed in recent weeks.

Share

Activity levels for North American mold makers were little changed in recent weeks. Based on the latest survey for our Mold Business Index (MBI), the MBI value for April is 51.2. This represents a modest 0.9 percentage point decrease from the March value of 52.1. The Production and Employment sub-indices both advanced in the latest month while most of the other components were steady. On the down side, there was another strong rise in Materials Prices, and Backlogs were a bit shorter. The Future Expectations sub-index backed off to a cautiously optimistic value of 67.9.

The Mold Business Index is based on a monthly survey of North American mold makers. Mountaintop Economics & Research, Inc. conducts the survey, and then calculates a diffusion index based on 50.0. A value above 50.0 for the MBI indicates that business activity expanded in the previous month, while a value below 50.0 means that business levels declined.

The latest sub-index value for New Orders of molds is 48.2, which means that the number of new orders was steady-to-down when compared with the previous month. The predominant trend in new orders in recent months has been a gradual rise, and continued improvement in this component is necessary to generate consistent gains in the other components. Production activity in April increased, as the latest Production sub-index is a solid 60.7.

The Employment component for April is 55.4, which indicates that the total number of workers in the industry increased moderately in recent weeks. The industry's total backlog was again steady-to-down, as the April Backlog sub-index is 44.6. The number of offshore orders for new molds did not change last month. The Export Orders sub-index is exactly 50.0.

The Mold Prices sub-index for April is 46.4. This means that prices for new molds were flat-to-down last month. The prices paid for materials continue to rise, as the latest sub-index for Materials Prices came in at a discouraging 76.8. Supplier Delivery Times held mostly steady, with this sub-index posting a value of 48.2 in the latest month.

The Future Expectations sub-index for April indicates that mold makers remain optimistic, but not to the degree that they have been. The latest value is a relatively subdued 67.9. This ebbing of optimism was matched by a small, but noticeable decrease in the reported aggregate capital investment plans for the future.

Foreign competition remained as the most-cited problem that currently plagues the mold making industry. Other problems receiving multiple mentions were the soaring costs of materials, healthcare, and energy; less favorable payment terms; demand for fast deliveries; and ill-conceived U.S. trade policies.

Our forecast calls for gradually rising activity in the plastics manufacturing and tooling industries throughout the remainder of 2005. This will result in a continuation of the overall trend in the MBI data, which has registered a gradual but steady gain. Plastics processors are still in a cyclical upturn in spending on new capital equipment. And the continued rise in overall spending on industrial equipment in the U.S. indicates that the demand for new molds will remain in a gradual uptrend for the foreseeable future. Most of the major economic indicators suggest that plastics manufacturing levels in the U.S. increased moderately in recent weeks, and the U.S. economy's crucial leading indicators are still in a sustainable growth phase.

This means that our Injection Molding Business Index will continue to expand during the next few quarters. Following a gain of 3% in 2004, this Index is forecast to increase 5% in 2005. Consistent gains in the Mold Business Index depend on sustained growth of 4% to 5% in the output of injection molded products. The trend in the mold making industry also lags the trend in the processing sector by about six months. So as demand for molded products expands in the coming months, orders for new molds will continue to rise.

 

Mold Business Index
April 2005


New Orders
Production
Employment
Backlog
Export Orders
Supplier Deliveries
Materials Prices
Mold Prices
Future Expectations
% Positive
29
32
18
18
0
0
54
11
39
% Equal
39
57
75
53
100
96
46
71
57
% Negative
36
27
7
40
0
20
0
13
4
Net % Difference
-3
21
11
-11
0
-4
54
-7
35
Sub Index
48.2
60.7
55.4
44.6
50.0
48.2
76.8
46.4
67.9
New 2024 Twin Screw Report
Realationships
mold, mould track, digital tracking, molding
structural foam molding chemical foaming agents
Blending Revolution
NPE2024: The Plastics Show
Dri-Air
Guill - World Leader in Extrusion Tooling
Konica Minolta CM-36dG
Insert molding automation
RoyAlloy Stainless Mold Base Steel
Vecoplan

Read Next

Extrusion

How Polymer Melts in Single-Screw Extruders

Understanding how polymer melts in a single-screw extruder could help you optimize your screw design to eliminate defect-causing solid polymer fragments.  

Read More
Recycling

Advanced Recycling: Beyond Pyrolysis

Consumer-product brand owners increasingly see advanced chemical recycling as a necessary complement to mechanical recycling if they are to meet ambitious goals for a circular economy in the next decade. Dozens of technology providers are developing new technologies to overcome the limitations of existing pyrolysis methods and to commercialize various alternative approaches to chemical recycling of plastics.

Read More
processing tips

People 4.0 – How to Get Buy-In from Your Staff for Industry 4.0 Systems

Implementing a production monitoring system as the foundation of a ‘smart factory’ is about integrating people with new technology as much as it is about integrating machines and computers. Here are tips from a company that has gone through the process.

Read More
Vecoplan USA