Transcript Knowlton Manufacturing Monthly Update

Knowlton Manufacturing Monthly Update
In this Issue:
International GDP Growth
Forecasts
Machine Tool Industry Outlook
U.S. Economy, Employment
What’s New At KMC and
Customer Testimonial
March 10, 2006
Forecasts for 2006
International GDP Growth Forecasts According To Kiplinger
Text:
‘05
‘06
Canada
2.9%
3.1%
Euro Zone
1.3%
1.8%
Mexico
3.1%
3.5%
China
9.9%
9.4%
Japan
2.3%
2.2%
United Kingdom
3.3%
3.3%
South Korea
3.8%
4.6%
Brazil
2.4%
3.5%
India
7.0%
7.0%
World Average
3.3%
3.3%
United States
3.5%
3.1%
Source: The Kiplinger Letter, Feb. 17, 2006
BACK
US Economy, Employment
Market Economists are expecting 2006 employment to
grow at a rate that resembles that of 2005. New jobs per
month are expected to total 168,000 and hourly wages
are expected to grow at 3.1% this year. Further, the
unemployment rate is expected to mirror that of last year
or possibly be a little lower. The growth in employment
and capital spending is being explained by the need for
businesses to open more production capacity to meet
demand.
Source: Business Week, January 23, 2006
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Machine Tool Industry Outlook
Machine tool demand is expected to
increase over the next few years. The
reasons for the expected growth are
rising operating rates, growing industrial
production, and improving balance
sheets. Capacity utilization rates are
expected to remain strong in 2006, which
is an indicator of rising operating rates.
Industrial production growth was
increasing in late 2005, and this trend is
expected to continue. November (2005)
output increased by 2.8 percent above
the previous year, and is expected to
continue accelerating in 2006.
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The main challenge facing
domestic suppliers of machine
tools is the increased presence of
foreign competition. Customer
service after the sale is the major
advantage domestic suppliers
have over foreign competitors,
and should be harnessed at every
sale, according to Eli Lustgarden,
Vice President of Longbow
Research.
Source: The Stamping
Journal, February 2006.
What’s New At KMC?
We have expanded our
capabilities to include several
assembly functions. We are
currently producing several
subassemblies for our
customers, and are looking to
expand our sales base in this
area. Please call for a quote
today-in addition to supplying
high quality tooling and
stampings, we are dedicated
to providing the highest
quality assemblies at
competitive prices, along with
great service.
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Customer Testimonial of the
Month:
With Today’s multiple vendors for steel
stamping, Knowlton Manufacturing has
become my #1 choice. From their
extremely competitive pricing to their
ability to stock my material and
warehouse some of my stamped product,
Knowlton Manufacturing is truly known
as “The Service People.”
-Joe Fronczek
The Dee Sign Company