Industry News

With the overall economy sluggish and the housing and mortgage markets in a tailspin, less ambitious home improvement and remodeling projects currently account for almost 75% of the almost $200 billion spent by homeowners on their homes each year, and kitchen renovations are among the most popular. Kitchens were once isolated workspaces used solely for preparing food, but today’s kitchens are social gathering-places where guests gather while the host prepares food. The kitchen is the center of the home, and kitchen updates are currently a huge trend. Not only does a kitchen renovation render the space more useful, but it offers one of the highest returns on investment upon resale.

One current major trend in kitchens is natural or processed stone countertops and backsplashes. Marble is regarded as a top-of-the-line stone that is increasingly being used in kitchens. It adds great value to a home. On the one hand, marble is a beautiful and smooth natural surface that is available in a large variety of textures and color variations. It is the hardest surface one can choose for a kitchen countertop and is extremely durable. Also, because it is a natural stone product, each countertop will be one-of-a-kind, lending an air of opulence to any kitchen. On the other hand, however, the price tag for a marble countertop is very high, so it is not often used for entire kitchens. Further, because it is porous, marble requires special sealants so as to keep it from staining and scratching. Proper care of marble countertops is crucial to ensuring that the investment remains looking its best for as long as possible. Trivets and hot pads are always required under plates, glasses or bowls that can scratch the surface, and grease or juice must be cleaned immediately so as not to stain the delicate surface of the marble.

Another trend in kitchen remodels is replacing or refacing cabinets. Redoing cabinets tends to devour a large chunk—about half–of a kitchen remodel budget because cabinets are such a large component of the kitchen. In an effort to save money, some homeowners opt to change the cabinets themselves; cabinets have thus become one of the most popular do-it-yourself projects for homeowners. Changing the cabinets may serve to completely change the look of a kitchen and enhance the value of a home.

Wood cabinets continue to be the most popular (80% of all purchases), but there are now more materials to choose from than ever before and cabinets can be made truly unique. The aged look, such as distressed and whitewashed wood, is growing in popularity. An overall trend toward furniture-grade wood cabinets has taken a firm hold in the marketplace. Maple and cherry woods are still the most popular, but newer choices include alder, beech and lyptus (a quickly renewable wood source that is considered “green”). Additionally, trends include custom aspects such as pull-out waste cans, slide-out towel bars, built in spice racks and pull-down shelves. People want and need cabinets to perform at a high level; every cabinet now has a specific purpose.

Sources

“Kitchen Renovation Trends,” lendingtree.com

“The Remodeling Market Will Hold up Well in 2008,” articles.directorym.net

“Should You Consider Marble Kitchen Countertops?,” china-kitchen-cabinets.com

“Caring for Marble Countertops,” ideas.reliableremodeler.com

“Marble Kitchen Countertops-Are They Any Good?,” ezinearticles.com

“Top Picks for Kitchen Countertops,” interiordec.about.com

“Kitchen Cabinets & Kitchen Design Consumer Guide,” kitchencabinetsanddesignsonline.com

“Sorting Through Kitchen Cabinet Choices,” design.hgtv.com/kitchen

“Kitchen Cabinet Trends Marry Style, Function,” design.hgtv.com/kitchen

“Kitchen Cabinets: “Custom” Goes Mainstream,” consumerreports.org

Puerto Rico is a 9,104 square kilometer island situated between the Caribbean Sea and the Atlantic Ocean. Due to its location, Puerto Rico is one of the Caribbean’s most valuable ports. Its location is ideal, it has many port cities, and the Mona Passage, off Puerto Rico’s west shore, is a crucial shipping route to the Panama Canal.  Puerto Rico’s economic value did not rise, however, until after World War II.

Prior to the beginning of World War II in 1939, Puerto Rico’s economy was almost entirely dependent on agriculture, specifically sugar.  During the war, the industrialization of Puerto Rico began, with industries owned by the state supplying the local population and the US armed forces with products when it was feared the German navy might blockade the area.  In 1947, the state-promoted process of industrialization was replaced by a system of incentives and tax breaks aimed at attracting private US capital to Puerto Rico by making the island less dependent on agriculture and increasing employment opportunities.  This system was labeled Operation Bootstrap

Operation Bootstrap was generally considered a success.  It brought many industrial companies to Puerto Rico and created thousands of jobs.  Puerto Rico was transformed from an underdeveloped island to an industrial area and an important overseas market for the US. Foreign investment in industry was encouraged, and the island’s labor force shifted from agriculture to manufacturing.  The manufacturing sector also saw a shift from labor intensive industry (food, tobacco, leather and clothing) to capital intensive industry (pharmaceuticals, chemicals, machinery, metal products and electronics).

By 1965, Puerto Ricans enjoyed the highest per capita income in Latin America.  After a series of economic downturns in the 1970s and early 1980s, the economy rebounded, and, to date, many US and other foreign industrial companies have invested heavily in Puerto Rico. In fact, over 160 of the Fortune 500 companies currently have facilities in Puerto Rico, including Pepsi-Cola, Walgreen’s and Kraft General Foods.  Important industries include pharmaceuticals, electronics, textiles, petrochemicals, and processed foods.  Manufacturing activities that contribute to the manufacturing domestic income include chemical products, machinery and metal products, food products, apparel products, printing and publishing, leather products, stone, clay and glass products, tobacco, paper and textile mill products.  Manufacturing today accounts for over 40% of Puerto Rico’s Gross Domestic Product of over $38 billion and utilizes over 11% of the labor force.  The construction industry is one of the most rapidly growing components of the economy, particularly in response to heavy expansion in manufacturing and tourism. (“ Puerto Rico,” Encarta.msn.com; lcw.lehman.edu; welcome.topuertorico.org/economy; “ Puerto Rico,” nationsencyclopedia.com)

Goods manufactured or assembled in Puerto Rico primarily use imported industrial components. US firms still dominate the manufacturing sector, largely through high tech industries producing pharmaceuticals, electronics, chemicals and medical equipment.  Clothing, processed food and soft drinks are also important.  Several smaller factories are owned by local entrepreneurs.  Global competition since the late 1990s has slowed the island’s manufacturing sector, which is not as competitive in labor intensive industries because US minimum wage laws apply in Puerto Rico, making labor more expensive than it might otherwise be.  For example, Puerto Rico’s hourly wages are six times higher than those in Mexico, whose manufactured goods have entered the US duty free since the mid 1990s.

Overall, Puerto Rico’s manufacturing sector had an annual payroll of $3.1 billion in 2002, spent $13.4 billion on materials and had $3.7 billion in capital expenditures.  The total value of shipments to the US by Puerto Rico’s manufacturers was $34.7 billion, comprising more than half of Puerto Rico’s manufacturing shipments.  (Britannica.com; “Economic Census,” census.gov)

Specifically with regard to demand for machined goods, in Puerto Rico, as in the US, demand depends on manufacturing activity. According to Reuters, the US manufacturing sector growth is expected to rebound to 2.9% in 2008 (up from 2% in 2007, but still down from 4.7% in 2006).  Manufacturing in Puerto Rico somewhat follows the trend in the US, but at a lower level.  For many in Puerto Rico’s manufacturing sector, 2007 was a struggle.  The local economy was in the second year of a recession, operational costs such as energy and water were higher than ever and global competition remained fierce. Puerto Rico’s ability to remain competitive in manufacturing on a global level is seen at a crossroads and as requiring aggressive action in key areas, not only to attract new investments but also to protect investments already made.  (“US Manufacturing Growth to Rebound in 2008,” reuters.com, 9/5/07; “Manufacturing Industry out of steam in 2007,” Puerto Rico Wow!, prwow.com)

Sources

“Puerto Rico,” Encarta.msn.com

lcw.lehman.edu

welcome.topuertorico.org/economy

“Puerto Rico,” nationsencyclopedia.com

Britannica.com

“Economic Census,” census.gov

“US Manufacturing Growth to Rebound in 2008,” reuters.com, 9/5/07

“Manufacturing Industry out of steam in 2007,” Puerto Rico Wow!, prwow.com

A brief review of the US paper industry is illustrative.  The US per capita consumption of paper is over 700 pounds per year, by far the highest in the world.  Other major developed countries have substantially lower per capita consumption, as much as 20, 30 or 40% lower than in the US, partially as the result of many countries’ concerted efforts to substantially reduce packaging. (“The US Paper Industry and Sustainable Production,” sonic.net)

The US pulp, paper and paperboard mill industry consists of about 270 companies with total combined annual revenue over $70 billion.  An average mill has about 300 employees and annual revenue of $125 million.  The industry is highly concentrated; the top 20 companies produce 75% of industry revenue. Demand in the industry depends on both consumer and business use of paper products. The profitability of individual companies depends largely on production efficiency.  Paper mills are highly automated and capital intensive.  (“Pulp and Paper Mills Industry,” firstresearch.com 1/21/08)

Roll Rebuilding and Recovering depends to no small degree on the state of the paper industry.  As mentioned above, the US consumes considerably more paper than any other country in the world,  and that statistic is unlikely to change significantly in the near future.  Therefore, it follows that roll rebuilding and recovering business should remain fairly consistent.

With regard to the general state of the industry for job and machine shops, the roughly 23,000 independent shops in the US have combined annual revenue of $30 billion.  None is publicly owned, and most companies operate a single shop.  The industry is thus highly fragmented; the 50 largest companies hold less than 15% of the market.    Profitability is linked to engineering expertise and operating efficiency.  Larger shops can invest in advanced production machinery, while smaller shops can compete by serving specialized customers.  (“Machine Shops,” hoovers.com, 11/5/07)

Demand for machine shops and their output depends on US manufacturing activity. According to Reuters, the US manufacturing sector growth is expected to rebound to 2.9% in 2008 (up from 2% in 2007, but still down from 4.7% in 2006).  While the manufacturing sector is not seen as able to shake off completely the depressing effect of the housing market collapse and the downward drifting motor vehicles market, some segments of the industry did show double digit growth in 2007, a trend expected to continue into 2008. (“US Manufacturing Growth to Rebound in 2008,” reuters.com, 9/5/07)

Sources

“The US Paper Industry and Sustainable Production,” sonic.net

“Pulp and Paper Mills Industry,” firstresearch.com 1/21/08

“Machine Shops,” hoovers.com, 11/5/07

“US Manufacturing Growth to Rebound in 2008,” reuters.com, 9/5/07

A brief review of the US paper industry is illustrative.  The US per capita consumption of paper is over 700 pounds per year, by far the highest in the world.  Other major developed countries have substantially lower per capita consumption, as much as 20, 30 or 40% lower than in the US, partially as the result of many countries’ concerted efforts to substantially reduce packaging. (“The US Paper Industry and Sustainable Production,” sonic.net)

The US pulp, paper and paperboard mill industry consists of about 270 companies with total combined annual revenue over $70 billion.  An average mill has about 300 employees and annual revenue of $125 million.  The industry is highly concentrated; the top 20 companies produce 75% of industry revenue. Demand in the industry depends on both consumer and business use of paper products. The profitability of individual companies depends largely on production efficiency.  Paper mills are highly automated and capital intensive.  (“Pulp and Paper Mills Industry,” firstresearch.com 1/21/08)

Roll Rebuilding and Recovering depends to no small degree on the state of the paper industry.  As mentioned above, the US consumes considerably more paper than any other country in the world,  and that statistic is unlikely to change significantly in the near future.  Therefore, it follows that roll rebuilding and recovering business should remain fairly consistent.

With regard to the general state of the industry for job and machine shops, the roughly 23,000 independent shops in the US have combined annual revenue of $30 billion.  None is publicly owned, and most companies operate a single shop.  The industry is thus highly fragmented; the 50 largest companies hold less than 15% of the market.    Profitability is linked to engineering expertise and operating efficiency.  Larger shops can invest in advanced production machinery, while smaller shops can compete by serving specialized customers.  (“Machine Shops,” hoovers.com, 11/5/07)

Demand for machine shops and their output depends on US manufacturing activity. According to Reuters, the US manufacturing sector growth is expected to rebound to 2.9% in 2008 (up from 2% in 2007, but still down from 4.7% in 2006).  While the manufacturing sector is not seen as able to shake off completely the depressing effect of the housing market collapse and the downward drifting motor vehicles market, some segments of the industry did show double digit growth in 2007, a trend expected to continue into 2008. (“US Manufacturing Growth to Rebound in 2008,” reuters.com, 9/5/07)

Sources

“The US Paper Industry and Sustainable Production,” sonic.net

“Pulp and Paper Mills Industry,” firstresearch.com 1/21/08

“Machine Shops,” hoovers.com, 11/5/07

“US Manufacturing Growth to Rebound in 2008,” reuters.com, 9/5/07

Digital pressure gauges are devices that convert applied pressure into signals, with readouts then being displayed numerically. They are capable of performing various pressure measurements and displaying amounts in different units. Some digital pressure gauges display measurements in pounds per square inch (PSI), kilo pascals, bars or millibars, inches or centimeters of mercury, or inches or feet of water. Such devices differ in terms of maximum allowable pressure, accuracy, vacuum range, and operating temperature. Accuracy is often denoted by a letter grade, from 4A (permissible error of 0.1% of span) to D (5% error). Digital pressure gauges are used in a variety of industries and have pharmaceutical, food processing and automotive applications. They are also used in containment and monitoring of hazardous materials. (“Digital Pressure Gauges Information,” sensors-tranducres.globalspec.com; “Pressure Gauges,” omega.com)

In general, US demand for sensor products (all types of sensors, transducers and housings) is expected to rise 6.7% per year to over $15 billion in 2010. The fastest growth is expected in sensors based on more advanced, sophisticated technologies and sensors to be used in dynamic applications such as automotive safety and security systems, consumer electronics and information technology. Demand for sensors based on MEMS technology is also expected to advance above the pace of the overall sensor market. (“Sensors,” marketresearch.com, 4/1/06)

As for the machine shops creating such items, the roughly 23,000 independent shops in the US have combined annual revenue of $30 billion. None is publicly owned, and most companies operate a single shop. The industry is thus highly fragmented; the 50 largest companies hold less than 15% of the market. Profitability is linked to engineering expertise and operating efficiency. Larger shops can invest in advanced production machinery, while smaller shops can compete by serving specialized customers or by providing engineering services. (“Machine Shops,” hoovers.com, 11/5/07)

Demand for machine shops and their output depends on US manufacturing activity. According to Reuters, the US manufacturing sector growth is expected to rebound to 2.9% in 2008 (up from 2% in 2007, but still down from 4.7% in 2006). While the manufacturing sector is not seen as able to shake off completely the depressing effect of the housing market collapse and the downward drifting motor vehicles market, the electrical equipment, mining/oil/gas field equipment, aerospace products, communications equipment, and industrial machinery industries all showed double-digit growth in 2007, a trend expected to continue into 2008. (“US Manufacturing Growth to Rebound in 2008,” reuters.com, 9/5/07)

Sources

jlwinstruments.com

“Digital Pressure Gauges Information,” sensors-tranducres.globalspec.com

“Pressure Gauges,” omega.com

“Machine Shops,” hoovers.com, 11/5/07

“US Manufacturing Growth to Rebound in 2008,” reuters.com, 9/5/07

Metal Stamping is used to create parts to a specific size, shape and configuration by “stamping out” a desired shape from a metal blank, Steel, Aluminum or other non ferrous metals. The machines, normally called a “Stamping Machine” is configured with a male and female “Die Set” this die set can be an exact duplicate or can be made to the mirror image of the part shape. The Stamping machine with its dies set can be as simple as a manually, or hand operated machine, to a hydraulically operated machine that can exert many tons of pressure. The metal stamping industry produces high volumes of parts at very low cost.. (“Metal Stamping Manufacturing About,” engineersedge.com; “Metal Stamping Informational Page,” metalstamper.net)

Revenue for the metal forging and stamping industry in 2006 was $12.2 billion, with gross profit of 23.24%. There were over 1500 establishments in the industry in 2006. It is estimated that more than 80% of manufactured goods and capital equipment use forging and stamping as engineered components, or rely on castings for their manufacture. (“Metal Stamping Industry in the US,” marketresearch.com; “US Forging & Stamping Industry Market Research Report,” ibisworld.com)

As for the machine shops creating such items, the roughly 23,000 independent shops in the US have combined annual revenue of $30 billion. None is publicly owned, and most companies operate a single shop. The industry is thus highly fragmented; the 50 largest companies hold less than 15% of the market. Profitability is linked to engineering expertise and operating efficiency. Larger shops can invest in advanced production machinery, while smaller shops can compete by serving specialized customers or by providing engineering services. (“Machine Shops,” hoovers.com, 11/5/07)

Demand for machine shops and their output depends on US manufacturing activity. According to Reuters, the US manufacturing sector growth is expected to rebound to 2.9% in 2008 (up from 2% in 2007, but still down from 4.7% in 2006). While the manufacturing sector is not seen as able to shake off completely the depressing effect of the housing market collapse and the downward drifting motor vehicles market, the electrical equipment, mining/oil/gas field equipment, aerospace products, communications equipment, and industrial machinery industries all showed double-digit growth in 2007, a trend expected to continue into 2008. (“US Manufacturing Growth to Rebound in 2008,” reuters.com, 9/5/07)

Sources

“Metal Stamping Manufacturing About,” engineersedge.com

“Metal Stamping Informational Page,” metalstamper.net

“Metal Stamping Industry in the US,” marketresearch.com

“US Forging & Stamping Industry Market Research Report,” ibisworld.com

“Machine Shops,” hoovers.com, 11/5/07

“US Manufacturing Growth to Rebound in 2008,” reuters.com, 9/5/07

The fertilizer industry depends heavily on the agricultural crop production industry, which currently includes one million crop farms covering over 300 million acres in the US. The agricultural sector has combined annual revenue of $100 billion. Demand for crops in turn depends heavily on population and the condition of export markets. As the world’s population continues to climb to an estimated 9 billion by 2025, experts estimate that food production must increase more than 2% annually to maintain current diets. Crop yield is also a significant factor in profitability. Commercial fertilizers are seen to be key to these factors. With good fertilizers and high yield farming practices, more food is produced per acre per year, and fruits and vegetables are available in affordable abundance. (“Agricultural Crop Production,” hoovers.com; The Fertilizer Institute, “Fertilizer Facts and Stats,” tfi.org)

Although the US fertilizer market is valued at approximately $40 billion per year with almost 58 million total tons of fertilizer used in the US, fertilizer use leveled off in the late 1970s. The fertilizer market is thus currently seen as a mature market leading to use fluctuations of only 2-3% per year. The current high gas prices are exacting a heavy toll on nitrogen fertilizer producers and the farm customers they supply. The cost of natural gas, which is used as a feedstock in nitrogen production, accounts for as much as 90% of the cost of producing nitrogen fertilizer. High gas prices lead to high fertilizer prices, as well. An emerging niche in the market is that of organic fertilizer. While it is currently a very small share of the market, demand is growing along with that of organic food and other items. (tfi.org; “Organic fertilizer companies see growing market, but efficacy debated,” marketwatch.com 5/21/07)

Sources

“Agricultural Crop Production,” hoovers.com

The Fertilizer Institute, “Fertilizer Facts and Stats,” tfi.org

“Organic fertilizer companies see growing market, but efficacy debated,” marketwatch.com 5/21/07