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Archive for May, 2013

The Outdoor Power Equipment Market Is Growing

Grass Cutting Lawn Outdoor equipmentWarm weather is the time for trimming hedges, cutting the grass, and pulling the weeds at home, but here at Production Materials, we’re thinking about outdoor power tools at the manufacturing and service parts level.

As providers of component solutions for this industry, we have a first-hand look at customers’ forecast, so we can see trends. The continued demand for lawn and garden equipment is evident—along with steady growth in the replacement parts segment as well.

In the next five years, the U.S. demand for this equipment is expected to rise an annual 4 percent, which could add up to $10.6 billion. After tracking a slight decline in demand from 2007 to 2012, we are encouraged to see these projected numbers.

As the economy and GDP accelerate, consumers will spend more money on upgrading older equipment. Increased recreational activities requires the upkeep of greens and fairways as well as parks and resorts, which means groundskeepers need state-of-the-art equipment to maintain these venues.

As the industry continues to evolve with more innovation in the equipment’s technology, we at Production Materials will be there to provide many of the components and the subsequent benefits for consumers and our customers.

Now or Never: Improving America Infrastructure

After decades of neglect, America is finally paying some attention to our moldering infrastructure. This renewed interest couldn’t come at better time. The American Society of Civil Engineers (ASCE) puts out an infrastructure report card every four years and the U.S. scored a less-than-sterling D+ in the 2013 edition. So, what grade will we get in four years from now?

Recently we have been seeing a solid uptick in infrastructure work in a number of different industries, including one of the major sources of our business; the power industry. As the economy rebounds, and new sources of energy are discovered everyday, more money is going towards strengthening and rebuilding the aging energy infrastructure. We have seen a marked increase in the number of heavy-duty bolts, washers, and pins that we are providing to the energy sector.

Another trend is the rise in the number of warehouse and storage facilities that are either being refurbished or built. This has led to a boom in the need for building racking, which is another major source of business for Production Materials. Companies would not invest capital in new facilities unless they saw strong demand.

One of the benefits of providing parts to industries is that we get to see the economic trends early on. By the time a project is completed and makes the headlines, we have already known for months because these companies couldn’t even start building without the parts we supply.

As economy keeps heading in a positive direction, we are optimistic that infrastructure spending will keep pace. If you have a moment, we strongly suggest that you take a closer look at the ASCE’s 2013 Report Card for America’s Infrastructure. It is quite an eye opener!

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