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Food and Beverage Processing

Food and Beverage Processing

When wandering the grocery store aisles,...

Variable Frequency Drives in Electric Actuators

Variable Frequency Drives in Electric Actuators

Electric actuators are vital for operati...

Braided Packing: An Old Technology with a Modern Twist

Braided Packing: An Old Technology with a Modern Twist

Compression packing is the primary metho...

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Industry Headlines

Rotork Acquires Mastergear from Regal Beloit

4 HOURS AGO  |  Chris Guy

Rotork has acquired the entirety of Mastergear’s business and assets from Regal Beloit Corporation for $25 million on a cash-free and debt-free ...

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Industry Headlines

Rotork Acquires Mastergear from Regal Beloit

4 HOURS AGO

Rotork has acquired the entirety of Mastergear’s business and assets from Regal Beloit Corporation for $25 million on a cash-free and debt-free basis and a value of inventory that will be finalized at the end of a transition service agreement.

Mastergear will become part of Rotork's Gears divis...

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Emerson Opens New Helix Innovation Center

1 DAY AGO

Emerson announced the launch of its “Helix” initiative, including the opening of The Helix innovation center, an industry-first, $35 million hub dedicated to advancing research and education for the global heating, ventilation, air conditioning and refrigeration (HVACR) industry. The new ...

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Energy Sector Weighs on Construction Starts

1 DAY AGO

At a seasonally adjusted annual rate of $660.5 billion, new construction starts in March receded 1% from February’s pace, according to Dodge Data & Analytics. Total construction starts had jumped 13% in February, led by a huge gain for the electric utility and gas plant category. The dolla...

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Chevron Investing Billions in The Permian Basin

2 DAYS AGO

At Chevron’s annual security analyst meeting last month, chairman and CEO John Watson said that his company plans on investing billions into oil & gas projects in the Permian Basin.

According to the Hobbs News-Sun , Watson predicted they could be pumping up to 350,000 barrels a day out of West ...

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House Passes Bill To Lower Import Tariffs On Manufacturers

1 DAY AGO

This week, the House voted 415-2 for the American Manufacturing Competitiveness Act of 2016. The bipartisan, bicameral bill reforms the way Congress considers legislation for suspending tariffs on products not made in the U.S., what some are calling, “manufacturing tax breaks.” The legis...

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Texas Manufacturing Index Shrinks More Than Forecast

3 DAYS AGO

Texas factory activity increased for a second month in a row in April, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, rose from 3.3 to 5.8, suggesting a slight pickup in output growth.

Perce...

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2008 Market Outlook: Another Good Year

But get ready for a down cycle as we near the end of the first decade of the new millenium.

When members of the Valve Manufacturers Association gathered in Coronado Beach, CA in August for the association’s Annual Market Outlook Workshop, they listened intently to forecasts from a bakers’ dozen of economists and industry prognosticators. While much of the news was positive—most of the end-user industries served by VMA members appear to be on track for another healthy year—they also heard words of caution. In more than one instance, presenters mentioned the “R” word (recession), giving attendees plenty of food for thought as they plan beyond 2008. Two other themes echoed by speakers? The ever-dwindling workforce and the need to recognize how the North American valve industry is inextricably intertwined with the rest of the world.

 

A Recession is Coming

Alan Beaulieu, economist for the Institute for Trend Research, had some disquieting news for Outlook attendees: This nation will see a recession in the year 2010.

However, he insisted the news was not necessarily all bad.

The good news is, we have a couple more quarters of prosperity,” he said.

Beaulieu said the economy is running just about where he predicted it would go at last year’s workshop, though he’s lowered the figures somewhat for the rest of 2007 and 2008. By 2009, the economy will start to go weak and by 2010, it will take a dip, he said.

“We have no empirical indications yet, but home prices are just the tip of the iceberg,” Beaulieu said. He expects to see oil prices heating up this winter, edging up above $80/barrel in the first half of next year. He also said wage inflation in many sectors has already started.

And he said the Fed will raise rates by 50 to 75 basis points in early 2008, “which doesn’t sound like much,” but, as a nation that carries a lot of debt, the extra $400 a month per household that would result, for instance, could have a chilling effect.

Also, by 2010 there will be a new president who will be facing a number of problems, many of which are tied to the aging Boomer generation. “Whoever is president will be dealing with Social Security, Medicare, drug programs, all of which are budget busters,” he said.

The need to pay for these and other entitlement programs will mean the U.S. will need to borrow money, which puts the country at a global disadvantage, Beaulieu added.

One advantage this nation does have is its demographics, he said. Unlike some countries, “we’re having kids,” at a rate of about 2.1, which is balancing out retirees. In comparison, Russia, where male life expectancy is only 57, is shrinking and will lose 50 million by 2050, “which is the equivalent of the Bubonic Plague,” Beaulieu pointed out. And India, though it will grow almost as much as the U.S., is dealing with a land mass one-third the size.

The U.S. also has industrial advantages. For example, when comparing U.S. Industrial Production to its Gross Domestic Product, “we spend most of our time in a positive track, and we have been for a long time,” Beaulieu said. Currently, goods and services as a percent of GDP is the highest it’s been since World War II.

“We are a profitable nation and prosperous. We are first in technological readiness, quality of research, productivity, profits,” Beaulieu said.

The U.S. is also first in percentage of total world exports of goods and services with Germany, China and then Japan following next. And though many fear China’s growing strength, Beaulieu noted the country has significant demographic problems because of an aging population and restrictions on family size. It also has 125 million more men than women, which raises fears about violence, and significant pollution problems that are killing hundreds of thousands of people.

“China has been on steroids,” Beaulieu said, “but you don’t fix problems like these overnight.”

Beaulieu had these tidbits of advice:

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