Tag Archive for 'exports'

ABC Reports: First Quarter GDP: Nonresidential Fixed Investment in Structures Falls 12 Percent

“This GDP release shows that nonresidential construction momentum stalled during 2012’s initial quarter. But because the economy has improved since last September, the expectation is that nonresidential construction data will be more upbeat during the months ahead.” —ABC Chief Economist Anirban Basu.

 

Nonresidential fixed investment in structures dropped 12 percent in the first quarter of 2012 following a 0.9 percent decrease in the fourth quarter of 2011, according to the April 27 Department of Commerce Gross Domestic Product (GDP) report.

Nonresidential fixed investment in equipment and software increased 1.7 percent for the quarter after a 7.5 percent increase in the previous quarter. Overall, nonresidential fixed investment fell 2.1 percent in the first quarter of 2012 following a revised 5.2 percent increase in the previous quarter.

Residential fixed investment jumped 11.9 percent during the past three months following an 11.6 percent increase the previous quarter. Exports increased 5.4 percent for the quarter, with exports of goods rising 4.1 percent and exports of services rising 8.6 percent. Imports also saw an increase, up 4.3 percent for the quarter, with imports of goods up 3 percent and imports of services up 11 percent.

Federal government spending fell 5.6 percent in the first quarter of 2012 following a 6.9 percent decrease in the previous quarter. National defense spending decreased 8.1 percent in the first three months of 2012 while federal nondefense spending decreased 0.6 percent. State and local government spending was down for the seventh straight quarter, with spending decreasing 1.2 percent during the past three months.

Personal consumption expenditures increased 2.9 percent for the quarter, with expenditures of goods increasing 6.2 percent and expenditures of services increasing 1.2 percent. Changes in real private inventories added 0.59 percent to the first-quarter change in real GDP. Real final sales of domestic product, which is GDP minus the change in private inventories, increased 1.6 percent in the quarter following a revised 1.1 percent increase in the fourth quarter.

Gross domestic purchases – purchases of goods and services by U.S. residents wherever they are produced – increased 4.6 percent for the quarter following an increase of 4.3 percent in the previous quarter.

Overall, real GDP increased 2.2 percent in the first quarter of 2012, after a revised 3 percent increase in the fourth quarter of 2011.

Analysis

“Today’s GDP report extends the string of negative data releases for nonresidential construction activity in America,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Previous releases showed declines in employment, backlog, and construction spending. This GDP release shows that nonresidential construction momentum stalled during 2012’s initial quarter. In addition, output was down substantially in a number of key economic segments, apparent in the 12 percent decline in nonresidential fixed investment in structures.

“Overall, today’s report was disappointing,” Basu said. “The consensus forecast had called for 2.5 percent GDP growth during the first quarter on an annualized basis, but the actual figure came in at 2.2 percent, and much of the disappointment showed up in the nonresidential construction category.

“This performance is at least partially a reflection of the economic soft patch that overtook the economy early last year. Construction tends to lag the overall economy and the economic weakness of that period appears to be translating into diminished nonresidential construction activity today,” Basu said. “Because the economy has improved since last September, the expectation is that nonresidential construction data will be more upbeat during the months ahead.

“Most of the good news in today’s GDP release pertains to consumer-related activity, which is a net positive for commercial construction,” Basu said. “For instance, personal consumption expenditures were up 2.9 percent and residential fixed investment was up 11.9 percent. The ongoing growth in U.S. exports was also positive, including for the industrial real estate market.”

For more information or to see previous reports visit:

http://www.abc.org/Hot_Links/ConstructionEconomicsIndex.aspx

AEM Applauds Congress For Approving Free Trade Agreements

AEM and its member companies applaud Congress for taking bipartisan action on the Free Trade Agreements for Colombia, Panama and Korea. The House of Representatives and the Senate both voted on Wednesday to approve the measures, which will now go to the president for his signature.

“Not only will these agreements help level the playing field for U.S. manufacturers, increasing their global competitiveness, but there is widespread agreement that these export agreements will help job growth and boost our overall economy,” said Dennis Slater, President of AEM. “High tariffs on U.S. exports have stunted job growth in manufacturing and other sectors. Seeing these agreements move forward is crucial for our member companies to have the ability to compete in vital global markets.”

As a critical initiative of AEM’s I Make America campaign, the association has worked directly and with industry partners urging Congress to quickly approve these long awaited agreements. “It is encouraging to see a bipartisan effort to move these through the legislative process,” Slater said. “We now look forward to a presidential signature on these agreements, and seeing them quickly put into force.”

Off-Road Equipment Manufacturers Meet With Gov. Romney To Discuss Strengthening The Economy, Exports

The Association of Equipment Manufacturers (AEM) and leaders of four equipment manufacturing companies today joined former Massachusetts Governor Mitt Romney at a manufacturing plant in Pataskala, Ohio to discuss ways to strengthen U.S. manufacturing in the global marketplace.

AEM member company business leaders from Ohio and Iowa shared their perspectives with Gov. Romney about the need for new manufacturing policies that would rebuild deteriorating roads, bridges and highways and help American manufacturers and farmers export their products to new and expanded markets around the world.

Gov. Romney spoke to employees at Screen Machine Industries (SMI), an American, family-owned manufacturing business that produces heavy equipment. SMI is a member of AEM and participates in the I Make America campaign to support manufacturing jobs.

In its effort to support America’s manufacturing sector, AEM launched a national grassroots campaign in 2010 called I Make America to give a voice to the men and women across the nation who work in manufacturing and agriculture. Thousands of people across the country have signed up to support this campaign, recognizing that infrastructure investment and export-friendly policies are two fundamental ways to generate economic growth and create jobs.

AEM member company leaders who participated with AEM in the discussion with Gov. Romney included:

  • Steve Cohen, President, Screen Machine Industries, Inc., Pataskala, Ohio – www.screenmachine.com
  • Dave Burdakin, President & CEO, Paladin, Cedar Rapids, Iowa and Akron, Ohio – www.paladinbrands.com
  • Mike Haberman, President, Gradall Industries Inc., New Philadelphia, Ohio – www.gradall.com
  • Ed Turner, President and CEO, Allied Construction Products LLC, Cleveland, Ohio – www.alliedcp.com

AEM And Export-Import Bank Begin Pilot Program For Small-Medium Size Member Companies

Small- and medium-sized companies with membership in the Association of Equipment Manufacturers (AEM) can now benefit from a pilot program with the Export-Import Bank of the United States (Ex-Im Bank) to increase their exports.

(left to right) Chuck Martz, Dennis Slater and Fred Hochberg

Dennis Slater, president of the association, and Fred P. Hochberg, the chairman and president of Ex-Im Bank, launched the program to help AEM’s small- and medium-sized (SME) member companies boost exports. AEM 2010 Chairman Chuck Martz, President & CEO of Link-Belt Construction Equipment, participated in the launch.

“In his State of the Union message, President Obama set a goal of doubling U.S. exports over the next five years, and increasing support for small business,” Hochberg said.  “Ex-Im Bank will continue to expand its efforts to help small business exporters, including manufacturers, contribute to and share in that success by selling to the 95% of the world’s buyers who are located outside of the U.S.”

Under the guidelines of the program, an Ex-Im Bank representative will tailor assistance to eligible AEM-member companies interested in exporting products to new or existing markets.

The program will focus on Working Capital Guarantee and Export Credit Insurance, but companies may also receive other Ex-Im Bank assistance. To qualify, companies must meet the U.S. Small Business Administration definition of a small-medium business, produce goods in the U.S., demonstrate 51 percent U.S. content for those goods, and have an export deal in the works.