04282017Fri
Last updateThu, 27 Apr 2017 3pm

i

The Weekly Report

New Products

  • ja-news-2
  • ja-news-3

Industry Headlines

Permian Basin Oil Production Continues to Increase

Thursday, 27 April 2017  |  Chris Guy

Crude oil production in the Permian Basin is expected to increase to an estimated 2.4 million barrels per day in May, based on estimates from the U.S. ...

Readmore

Loading...
Advertisement
i

Industry Headlines

Metso Providing Valves for Oman Petrochemical Complex

1 DAY AGO

Metso will supply 400 Neles emergency shutdown (ESD) valves for an ethylene cracker as part of the new Liwa Plastics Industrial Complex (LPIC) Project in Sohar, Oman. The new complex will process light ends produced in Orpic's Sohar Refinery and its aromatics plant as well as optimize natural gas li...

Readmore

Curtiss-Wright Earns Safety Award for Third Year in a Row

1 DAY AGO

A Curtiss-Wright facility located in Chanhassen, MN, received a Governor’s Safety Award for superior performance in workplace safety and health as part of the Minnesota Governor’s Safety Awards. The Chanhassen site produces Exlar electric actuators and earned this award by reporting better...

Readmore

Permian Basin Oil Production Continues to Increase

12 HOURS AGO

Crude oil production in the Permian Basin is expected to increase to an estimated 2.4 million barrels per day in May, based on estimates from the U.S. Energy Information Administration . Between January 2016 and March 2017, oil production in the Permian Basin increased in all but three months, even as...

Readmore

East Coast Refiners Eye Texas as Alternative to North Dakota

1 DAY AGO

“Major U.S. East Coast refiners profited from railing hundreds of thousands of barrels of discounted Bakken crude to their plants daily from 2013 until 2015. But as more and more pipelines were built in North Dakota, the discount began to disappear, and so did the rail cars,” Reuters repor...

Readmore

Survey Shows Small Business Confidence Increasing

12 HOURS AGO

The second annual Allstate/ Small Business Barometer finds increasing optimism and innovation among small business owners, despite the rising cost of doing business. Nine in 10 local entrepreneurs say the benefits of owning a business outweigh the challenges. This year’s Barometer found that, ...

Readmore

Durable Goods Orders Up 0.7% in March

14 HOURS AGO

New orders for manufactured durable goods in March increased $1.6 billion or 0.7% to $238.7 billion, the U.S. Department of Commerce announced today. Economists were anticipating an increase of 1.2%. This March increase , the third consecutive, followed a 2.3% February increase.

Excluding transportatio...

Readmore

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:

  • Latest Post

  • Popular

  • Links

  • Events

Advertisement

Looking for a career in the Valve Industry?

ValveCareers Horiz

To learn more, watch the videos below or visit ValveCareers.com a special initiative of the Valve Manufacturers Association