Slower economy unfolding in 2001— except in industrial controls

Based on data for the fourth quarter of 2000, many economists are painting a grim picture for much of 2001. Rising energy costs and declining consumer confidence have combined to create a bleak forecast—at least for 2001's first half. Users post big gainsIndividual user industries all posted sales increases with Utilities and Oil, Gas & Coal leading the way.

01/01/1970


Based on data for the fourth quarter of 2000, many economists are painting a grim picture for much of 2001. Rising energy costs and declining consumer confidence have combined to create a bleak forecast-at least for 2001's first half.

Users post big gains

Individual user industries all posted sales increases with Utilities and Oil, Gas & Coal leading the way. The weighted average of the users indicated a 24% increase in sales from 1999 to 2000.

The users' composite profit profile was even better, showing a 47% increase during the same period. All applicable industries had positive profit gains. The Oil, Gas & Coal industry experienced a whopping 133% profit increase-no doubt attributable to large price hikes during 2000.



Controls users and suppliers performed better than the overall U.S. economy during 2000

Suppliers secure increases

Control suppliers performed equally well with composite increases of 16% in sales and 27% in profits from 1999 to 2000. Individually, the Instruments segment did very well with a 30% increase in sales and a 73% increase in profits, while the Electrical Products had a lackluster, though still positive, increase of 7% in sales and 3% in profits.

Closer examination of just 4Q99 and 4Q00, however, slightly dampens the users' and suppliers' overall exuberance. Two leaders among the user industries-Utilities and Oil, Gas & Coal-continued their last-quarter growth at about the same pace as the full-year comparison. The other industries had nearly the same growth quarter-to-quarter as year-to-year, but profits were all negative and down significantly in some cases.

Supplier industries in the 4Q99-to-4Q00 analysis performed just about the same as in the year-to-year comparison, though there was a slightly negative (-4%) drop in Electrical Products' profits.

All in all, the users and suppliers of industrial controls performed better than the economy in general in 2000, and are in position to do the same for the rest of 2001.





No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
High-performance buildings; Building envelope and integration; Electrical, HVAC system integration; Smoke control systems; Using BAS for M&V
Pressure piping systems: Designing with ASME; Lab ventilation; Lighting controls; Reduce energy use with VFDs
Smoke control: Designing for proper ventilation; Smart Grid Standard 201P; Commissioning HVAC systems; Boilers and boiler systems
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Consulting-Specifying Engineer case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Protecting standby generators for mission critical facilities; Selecting energy-efficient transformers; Integrating power monitoring systems; Mitigating harmonics in electrical systems
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software
Integrating BAS, electrical systems; Electrical system flexibility; Hospital electrical distribution; Electrical system grounding
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.