1. Road to Sustainable Recovery: The Environment for Manufacturing and Automation in 2010 and Beyond Craig Resnick Research Director ARC Advisory Group [email_address] Larry O’Brien Research Director ARC Advisory Group [email_address]
14. Latest Manufacturing ISM Report On Business Month PMI Month PMI Jan 2010 58.4 Jul 2009 49.1 Dec 2009 54.9 Jun 2009 45.3 Nov 2009 53.7 May 2009 43.2 Oct 2009 55.2 Apr 2009 40.4 Sep 2009 52.4 Mar 2009 36.4 Aug 2009 52.8 Feb 2009 35.7 Average for 12 months – 48.1 High – 58.4 Low – 35.7
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16. USBLS Productivity and Costs (Output per Hour of all Persons) Rising Manufacturing sector productivity grew 13.4 percent in the third quarter of 2009, as output rose 8.4 percent and hours worked fell 4.4 percent (tables A and 3). The third quarter gain in manufacturing productivity was the largest in the series, which begins in the second quarter of 1987.
17. Industrial Production and Manufacturing Capacity Utilization in the US Increasing For the fourth quarter as a whole, manufacturing output increased at an annual rate of 5.7 percent.
35. Automation is a Small Percent of Project Spend, but has a Huge Impact
36. Average Loss Per Major Incident, a Key Driver of Increased Automation At an Average Cost of Close to $100M in Damages per Incident, Operational Error is The Single Biggest Reason for Unscheduled Shut down
37. The Maintenance Service Scenario Today 35% 28% 20% 6% 6% 4% Source: Shell Global Solutions 63% of maintenance labor results in no action!!
45. From your perspective, how do you view the change in the economic climate from: At the end of the year, the Majority of respondents are optimistic about economy – Pessimism is way down
46. At your site, approximately what is your current manufacturing capacity utilization? On average, the majority of users are maintaining capacity utilization of more than 70 percent
47. At your site, how is your Capacity Utilization changing? Majority of respondents expect little change in capacity utilization
48. How are your orders and bookings changing? Respondents increases in bookings offset by decreases in bookings resulting in little overall change for last couple of months of 2009
50. How to you expect your Spending will change next month? Manufacturers Still Tentative about Plant Investment
51. How do you expect your CAPEX spending will change next month? Little change in CapEx at the end of 2009
52. The number of individual plant or manufacturing operations in my company are: Respondents come from a wide manufacturing base
53. Which of the following vertical industries best describes your firm's manufacturing business? A wide variety of industries are represented in the survey
57. Thank You For more information, contact the author at cresnick@arcweb.com or visit our web pages at www.arcweb.com
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60. “ Green” Buildings Energy Recovery Package Innovation PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today. Provide Trustworthy PRODUCTS Conserve and Respect our ENVIRONMENT Sustainability Will Raise the Bar Even Higher PepsiCo Respect and Fairly Treat our PEOPLE
In the past year alone, automation market consolidation reached new levels with the acquisition of GE by Honeywell. ABB acquired Cellier Engineering and made a majority investment in supply chain supplier Skyva. Invensys purchased Baan and Walsh Automation. Emerson Electric purchased Saab Marine Electronics, Kenonics, and MDC software. Siemens recently announced its acquisition of ORSI.
New position created: Assistant Secretary of Commerce for Manufacturing and Services Cross-agency initiative under development Dept. of Commerce draft report on manufacturing highlights rising energy costs as factor in eroding U.S. competitiveness