A new indicator shows that the metal working business is growing for the first time since March 2013, which is a positive sign for industry as whole.
With the economy picking up in a number of sectors across the board, it is encouraging to see that metalworking is following suit. As other markets pick up, so too does the need for metal-based projects. Be them machine parts or other kinds of products, the utilization of these kinds of goods shows that companies' business demands are growing. With them will likely come the need for hardware, like fasteners, that can secure these various parts in their larger apparatuses.
Business index shows growth
The Gardner metalworking business index showed industry expansion for the first time since March 2013, moving to a reading of 50.7. This marks the second straight month that has shown improvement over the one before and the fastest growth rate since June 2012.
According to Modern Machine Shop, new orders improved for the first time since March 2013 and at the fastest rate seen since May 2012. On top of this, production moved at the fastest rate since may of last year.
Materials costs stayed relatively steady and metal shops with 50 or more employees showed the strongest growth.
The index measures growth in various regions throughout the country. The Mountain region posted the strongest numbers with an index of 60.2 while New England also posted its second straight month of expansion. Other regions that performed well were the South Atlantic and West North Central regions, which both reversed their past trends of contraction.
Demand for tools growing
With this increased activity, the need for hardware that can handle these increased business processes is essential. This means that metal cutting tools will likely be in high demand.
According to a report from Infiniti Research Limited, the global market for high speed metal cutting tools is predicted to grow at a compound annual growth rate of 10.13 percent during the four years between 2012-2016. The report credits this growth to the need for developing superior-quality products as the price for these tools falls.
"[W]ith the advancement of technology, the cost of developing several basic HSS metal cutting tools is going down," said an analyst from the company's engineering team.
As the demand for high-quality metal products grows, so does the need for equipment that is capable of handling these materials in an effective manner.