CNC machining industry entering new era? Metalworking index at highest level since 2011!

The Gardner Business Index indicates weather metalworking industry is in expansion or contraction trend.

With a latest reading of 55.7, the  Index show that  manufacturing of durable goods went up at an accelerating rate for the fourth month in a row. In February month durable goods manufacturing grew at its fastest rate since March 2014 and second fastest rate since March 2012.

The new orders index increased for fourth month in a row, growing at its fastest rate since March 2014. The production index dipped slightly from last month, but the index remained above 60 indicating robust growth.  Material prices increased at an accelerating rate for the fourth month in a row. 

Stock market at new record highs.

If you look at a stock market which is considered a leading indicator you see sharp move up since Donald Trump was elected. Does it mean we entered new Trump era? If the President will be able to deliver his promises, cut regulation and taxes, create new jobs than metalworking and machining industries will be big beneficiaries. Booming economy can create new demand for cnc machined parts and prototypes. 

The fastest growing industries were HVAC, industrial motors/hydraulics/mechanical components, primary metals, metalcutting job shops, machinery/equipment, petrochemical processors, forming/fabricating (non-auto), aerospace, pumps/valves/plumbing products, plastics/rubber products, automotive, custom processors, medical, and power generation.

Vanguard Industrials ETF that seeks to track the performance of a benchmark index that measures the investment return of stocks in the industrial sector recently reached new high and companies like Timken Steel are rocketing to new records.

For the fourth month in a row, cnc precision machining grew at the fastest rate. Moldmaking grew at an accelerating rate for the fourth month in a row. Metalworking grew at its fastest rate since the survey expanded in December 2011.  Plastics expanded at a robust rate for the second month. In the past years machining has witnessed an increasing demand for faster cutting, better finishes and longer tool life, all while machining more demanding materials.