On the whole, electrical distributors should view the industrial outlook as generally
bright. But inevitably, there will be some months
when the sun slips behind clouds, and some
parts of the landscape may remain overcast.
For instance, the Federal Reserve reported on
Sept. 15 that industrial production in manufacturing skidded .4%, seasonally adjusted, in
August, while the July gain was marked down
from 1% to .7%. Nevertheless, the August decline
was the first since January, and the index
increased 3.6% year over year.
The Fed report also covers capacity utilization. Utilization of manufacturing plants in
August slipped back to the June rate, 77.2% of
capacity, after rising to 77.6% in July. But taken
together, these three readings were the highest
since before the recession. They are a continuation of a nearly steady increase in factory utilization over the past several years and a strong sign
that producers are likely to require more electrical equipment in coming months, for both
replacement and expansion purposes.
Electrical distributors serving industrial markets face brighter prospects
than many of their competitors in other segments.