Durable goods output recovery expected

Nov. 1, 2003
United States durable goods manufacturers are expected to invest more than $12 billion in capital equipment in 2004, according to the 2004 Gardner Research

United States durable goods manufacturers are expected to invest more than $12 billion in capital equipment in 2004, according to the 2004 Gardner Research Capital Spending Survey. The annual survey, now in its 36th year, is the metalworking industry's study of equipment spending intentions in the United States.

Results from the 2004 survey indicate an improvement in machine tool consumption on the order of 27%.

“We have been through a five-year depression in the machine tool industry that has seen consumption slump by more than 60% from the peak in 1988. Now we think that the fundamentals are in place for the beginning of a recovery,” says Steve Kline, executive vice-president of Gardner Publications. Purchases of machine tools, plastic processing machinery, and other production equipment are running at levels of 8% to 10% below 2002. “This is no recession — this is a flat-out depression,” says Kline.

“Next year will be a rebuilding year for capital equipment manufacturers,” says Kline. Machine tool consumption in the United States is expected to reach $3.9 billion, up from a projected $3.1 billion in 2003.

Phone Nancy Eigel-Miller at 800-950-8020 for more information.