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By the Numbers Composites Business Index 48.2: Contraction begins to slow Bio | Steve Kline Steve Kline is the director of market intelligence for Gardner Business Media Inc. (Cincinnati, Ohio), the parent company and publisher of Composites Technology magazine. He started as a writing editor for another of the company's magazines before moving into his current role. Kline holds a BS in civil engineering from Vanderbilt University and an MBA from the University of Cincinnati. employees had, through July, contracted four straight months. Te smallest facilities (fewer than 19 employees) contracted in July at the fastest rate since the CBI began in December 2011. In July, the strongest region for the year was the West North Central, which had grown for fve straight months. Te Mountain region experienced the fastest growth rate in July, and it was its frst month of growth since February this year. All other regions contracted in July. Future capital spending plans were at their second lowest level in July since June 2012. Planned spending was more than 25 percent above the historical average. Compared to July 2012, spending plans n July, the Composites Business Index (CBI) of 47.7 indicated in July 2013 were up by 16.1 percent. that composites business activity in the composites industry In August, a CBI of 48.2 showed that composites industry busihad contracted for the second consecutive month, having moved ness activity had contracted for the third consecutive month, but steadily lower since it had peaked in March. Employment was the the rate of contraction had slowed, indicating a possible break with only index to make a positive contribution in July, expanding for its downward trend. Two subindices made positive contributions: the ffh straight month. All other subindices performed worse in Employment grew for the sixth straight month, and suppler deliverJuly than in June. New orders contracted for the third month and ies continued their long-term lengthening trend. Production and at a slightly faster rate. Production moved from growth to contracexports continued to contract in August but did so at slower rates. tion for the frst time this year. Backlogs continued to contract, Exports, in particular, had contracted at a steadily slower rate since and did so more signifcantly and at their fastest rate for the year December 2012. New orders conTHE ComposiTEs BUsiNEss iNDEX tracted for the fourth consecutive month. Te only subindex to negasubindices August July Change Direction Rate Trend tively impact the CBI was backlogs. New Orders 47.4 47.4 0.0 Contracting Flat 4 In August, it contracted for the 15th Production 49.0 48.0 1.0 Contracting Slower 2 month and had done so noticeably Backlog 39.7 41.0 -1.3 Contracting Faster 15 faster each month since February. Employment 51.9 51.1 0.8 Growing Faster 6 Material prices increased in Exports 48.3 46.7 1.6 Contracting Slower 16 August at their slowest rate since Supplier Deliveries 52.6 51.7 0.9 Lengthening More 21 November 2012. Prices received increased slightly afer decreasing Material Prices 58.4 64.5 -6.1 Increasing Less 21 three of the previous four months. Prices Received 50.3 48.3 2.0 Increasing From Decreasing 1 Future business expectations fell Future Business 65.4 67.8 -2.4 Improving Less 21 somewhat afer having stayed fairly Expectations level for six months. Composites 48.2 47.7 0.5 Contracting Slower 3 One month does not a trend Business index make, but activity based on plant size could be shifing. Fabricators with more than 250 employees to date. Exports remained mired in contraction. Supplier deliveries contracted for the frst time since November 2012. Tose with fewer lengthen in July, having done so at a fairly constant rate all year. than 19 employees continued to contract, but at a much slower rate. Material prices increased in July. Te rate of increase reached Te small facility index, however, moved up to 43.9 from 38.9 in its fastest pace since March. Prices received by composites fabricaJuly. Tose with 50-249 employees continued strong. tors decreased for the third time in four months. Te combination Four regions expanded in August. Te fastest rate was the West of increasing material prices and decreasing prices received had a South Central, which had grown fve of the previous seven months signifcant negative impact on proftability. But future business exand, thus, was 2013's best performer to date. Meanwhile, New Engpectations improved noticeably in July. Tey reached their second land, the South Atlantic and the Middle Atlantic all moved from highest level since May 2012. contraction to expansion. But the West North Central, which had Te business activity this year through July was much higher at strong growth the previous fve months, fell of sharply. large than at small facilities. Tose with more than 250 employees Future capital spending plans were just above the historical avhad grown at a consistently strong rate since December 2012. Facilierage in August. However, the month-over-month rate of change ties with 50 to 249 employees had grown in all but a couple of months contracted for the third time in fve months. | CT | in that same time period. However, fabricators with fewer than 50 CT oCToBer 2013 I 7