Conveyor industry:  CEMA report says booked orders were down in August, but shipments were up

While August index is down 4% from July, it is up 25% from the August 2009 index of 101; shipments are up 13% from July and up 55% from August 2009.
By Lorie King Rogers, Associate Editor
October 12, 2010 - MMH Editorial

In its latest monthly report released today, the Conveyor Equipment Manufacturers Association (CEMA) reported that its August 2010 Booked Orders Index was 126. Index in August is down 5 points or 4% from July 2010’s Index of 131. The August 2010 Index represents an increase of 25% from the August 2009 Index of 101.

CEMA’s baseline calculation uses the year 1990 as a comparison.  Numbers to the right of the equation show the current state of the conveyor industry as compared to 1990.  Figures above 100 indicate growth; while anything less indicates a contraction in the industry.

The Twelve-Month Index for Booked Orders was 123 in August. Index in August represents an increase of 3% from July 2010’s Twelve-Month Index of 120.

The CEMA Billed Sales (shipments) Index was 161 in August. Index in August represents an increase of 13% from July 2010’s Index of 142. The August 2010 Index represents an increase of 55% from the August 2009 Index of 104.

The Twelve-Month Index for Billed Sales was 118 in August. Index in August represents an increase of 4% from July 2010’s Twelve-Month Index of 113.

While the booked orders were down slightly in August for the second consecutive month, shipments posted a solid increase.  What does this say about the current state of the conveyor industry?  In an interview with Modern, Bob Reinfried, CEMA’s executive vice president, said, that the word throughout the industry is that there was a little slow down at the end of summer, but the hope is that things will pick up. 

“Overall,” said Reinfried, “our bookings are better than billed sales for the year and shipments are up again this month, so this report may be an indication that there’s a bit of catching up on shipments side and bookings will remain steady.”

Comparing 2010 to 2009, Reinfried said the first eight months of 2010 are up quite a bit over last year and he still thinks it’s going to be a good year for the North American conveyor industry this year.  “I think we’re tracking right along with our forecast of 2% to 10% annual growth for the industry,” Reinfried said.



About the Author

image
Lorie King Rogers
Associate Editor

Lorie King Rogers, associate editor, joined Modern in 2009 after working as a freelance writer for the Casebook issue and show daily at tradeshows. A graduate of Emerson College, she has also worked as an editor on Stock Car Racing Magazine.


Subscribe to Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world's most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

This complimentary white paper addresses areas of potential benefit to a grocery distributor considering an investment in automated case picking technology.

In 2015, a new era in shipment pricing will go into effect when major carriers implement dimensional ("dim") weight pricing for all ground packages regardless of their size. This complimentary white paper, "Dimensional Weight: Don't Let it Weigh You Down", can help you optimize your packaging operation to minimize the financial impacts of dimensional weight pricing.

Replacing older, less-efficient lift trucks at the right time can reduce your maintenance costs, improve your productivity and, most importantly, save money and maximize your return on investment. So how do you determine the right time to make a new, significant purchase? Download this complimentary white paper for guidance on how to determine the ideal time to replace lift trucks and how planned replacement can benefit your operation.

The prolonged operating hours of automated distribution operations leave limited time for maintenance. For tightly-scheduled fulfillment operations, unplanned downtime not only cuts into slim profit margins, it jeopardizes future business and customer loyalty. Download this complimentary white paper to learn five mission-critical benefits of implementing a resident maintenance program.

Debut of Pharma EXPO plays crucial role in increase.

About the Author

Bob Heaney is a seasoned professional with over 25 years of distinguished leadership experience in research, analysis, and advisory roles in Supply Chain Engineering. Heaney’s coverage area within Aberdeen includes various elements of Supply Chain Execution (Transportation Management, Warehouse Management, Distributed Order Management and Supply Chain Visibility). Contact Bob Heaney

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA