Tag Archive for 'equipment'
Industrial production surged 1.3 percent in November as October’s initially reported decline was reversed to a slight gain. Manufacturing was the key driver with big gains this month and an upward revision in October.
Strong Report with Broad-Based Gains
The 1.3 percent increase in industrial production for November is the largest monthly pop in more than four years. It comes on the heels of an upward revision that moved last month from a slight decline to a slight gain in output. Manufacturing production was up 1.1 percent on the month with broad-based support. After three straight monthly declines for motor vehicles and parts, that series staged a comeback in November with a 5.1 percent monthly increase. But even excluding autos, manufacturing output was still up 0.9 percent.
The Weather Outside is Frightful
Over 50 percent of the lower-48 was blanketed in snow in November (including more than five feet in parts of Buffalo, NY). It was the largest snow-cover on record for the month of November. With wintry weather showing up in fall, it comes as little surprise that utilities output jumped 5.1 percent on the month.
What About Oil?
Oil prices ended November at roughly $66/barrel, but the average price for the month was still over $75/barrel (WTI crude). The much lower price environment for oil and other commodity prices will eventually cause equipment investment to slow in industries related to oil extraction, in our view. However, we have maintained that production would still hold up in the near term. Mining output fell in November, but oil was not to blame. Crude production was unchanged in November (in fact, it was up 1.1 percent before seasonal adjustment). “Other” mining (coal, metal ore, other minerals) was down 0.5 percent.
Empire Index: A Warning Shot or Just a Misfire?
In a separate report, the New York Federal Reserve’s Empire State manufacturing index unexpectedly slipped to negative territory in December. With all the discussion in financial markets about the impact of lower oil prices, it may feel like this miss is a warning that the factory sector is retrenching. We are not convinced that is what the numbers are telling us. The big movers among the subcomponents sound more like a supply chain disruption than a sudden shift in attitudes because of oil. Unfilled orders were off 24.0 points, delivery times were off 14.6 points and inventories were down 11.5 points. What about prices? How is the input cost side of production shifting? After 10.6 in November, prices paid came in at 10.4 in December, so no significant change. Prices received on the other hand, went from 0.0 last month to 6.3 in December. Still, the miss here in December should not be discounted completely; we will watch other regional Fed survey data for December with greater-than-usual interest.
Liebherr shapes its global, local and regional spare parts distribution and logistics to support its rapid growth and exceed customer-service expectations around the world.
Several positive developments that have a strong impact in the fulfilment and distribution of Earthmoving Liebherr spare parts globally and within the United States have been announced in the last months by the Liebherr Group.
In October of this year, the Liebherr Group gave a glimpse into the progress of its new spare parts and logistics center in Kirchdorf, Germany. The new state-of-the-art facility to begin operations in early 2015, is expected to serve as its global logistics hub for earthmoving spare parts. The investment value for the first stage of construction is in excess of 143 million US Dollars and covers an area in excess of 505,000 ft2. A large part of the investment has gone into implementing highly automated warehouse equipment and software that will enable the logistics center to employ leading-edge performance standards. The new warehouse solutions will allow the group to handle higher volumes of spare parts, reduce turn-around times and guarantee order accuracy for Liebherr customers around the world.
Additionally, the Liebherr Group is continuing a significant investment in building improvements, machinery, tools and infrastructure to expand the factory and enhance the warehouse facility at their Newport News, Virginia (USA) location. These renovations are part of the $45.4 million investment as announced earlier this year by Liebherr Mining Equipment Newport News Co. The Newport News location serves as the headquarters and central warehouse for the Liebherr Mining Division and for four other operating Liebherr companies; Liebherr Construction Equipment Company among one them. Major warehouse overhauls include; the implementation of a sophisticated Warehouse Management System (WMS) and wide range of process-improvement initiatives consisting of a new racking system adding additional locations and increased load-bearing capability, over 100,000 ft2 of new epoxy floor to facilitate the heavy traffic and movement of material, and eight new additional loading docks to speed up the traffic and help with the flow of trucks loading and unloading materials at the facility.
“The new WMS offers a multitude of functions that will optimize the overall logistics and support the daily operations of the facility… it will provide a transparent work flow and enhance the visibility of the activities at each of the warehouse terminals; from receiving thru shipping, in addition to providing inventory accuracy.” said Martin Seitz, WMS Project Coordinator at Liebherr Mining Equipment Co.
Furthermore, this month, Liebherr Construction Equipment Co. headquartered in Newport News, VA and responsible for the sales and distribution of the full line of Liebherr earthmoving and material handling equipment in the United States, announced the opening of a new spare parts facility located in Visalia, California. The new depot is expected to begin operations in early 2015. The facility will support Western US Distribution with localized parts warehousing. The National Parts Distribution Center in Newport News, Virginia along with its new distribution center in California, will help expedite parts orders, improve operational efficiency and minimize transit time while increasing customer support.
“The opening of the new spare parts and logistics center in Germany along with the expansion and overhaul of our Newport News operations, and the opening of the parts depot in the western United States, is part of Liebherr’s ongoing commitment to better serve our customers not just throughout the world but also throughout the United States. This represents a significant step forward in our customer support” said Peter Mayr, President of Liebherr Construction Equipment Co., adding “We continue to invest in our operations to ensure we provide our dealer network and customers with the exceptional support they expect from Liebherr.”