From what I see, the industry is approaching capital investments...

Christina Lewellen
September 12, 2007
THE TALK...

The Talk, Page 2...

Survey Results for 09/12/2007:

From what I see, the industry is approaching capital investments...

...like the plague, being cautious until they have a better feel for the timing of the recovery.

 

 

40%

 

...at a slower pace than before, but still with some momentum.

 

 

37%

 

...with a long-term outlook, investing now to be ready when business rebounds.

 

 

23%

 

 Ok, so it’s not the brightest picture, but I think it’s encouraging that it’s not nearly as dark as it could be. For last week’s poll, inspired from the buzz of equipment on the show floor at GlassBuild America, I ventured into the arena of capital investment, asking if manufacturers are buying equipment despite the current market conditions. There’s no denying that things are a lot different now than they were a few years ago. Forty percent of respondents said manufacturers are avoiding equipment purchases “like the plague,” until we get a real feel for when this downturn is going to retreat. Still, nearly the same amount said producers are buying—just a little more cautiously than before. Even better, more than 20 percent indicated that certain manufacturers are growing or making investments in upgrades while they have a little breathing room in their production demands.

This cautious-but-still-buying message is what I walked away with from my GlassBuild conversations. Equipment suppliers showed some of their top-of-the-line automated machines, but also brought along some more basic necessities for producers looking to replace tired saws and welders.

If you’re not particularly of the “plague” mentality and would like to talk to me about your equipment game plan in the next year or so, shoot me an email. I’d be willing to bet you and your like-minded peers will be ready to run when we get on the other side of this dip.

Contact Christina Lewellen, senior editor, at clewellen@glass.org.

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