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Article: Get ready for more machinery shrinkage.(News)
- Article from:
- Plastics News
- Article date:
- November 2, 2009
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Bill Bregar
In plastics, screw and barrel sales are a leading economic indicator for broader capital spending.
Until companies start to spend dollars to replace worn-out screws with brand-new ones, you can't expect them to buy new injection molding machines, extruders or blow molders.
When capacity utilization is really low, firms pull screws, barrels and other parts off of idle machines. When they start to spend on screws, that means business is picking up.
I think there's another predictive relationship between screws and barrels, and primary machinery consolidation in industries suffering from overcapacity.
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