Assembly - December 2008 - (Page 28) Capital Spending The Northeast Lags Behind 60 54 Percent of plants with million-dollar budgets 51 50 46 44 40 47 44 40 39 37 29 27 25 21 21 21 11 9 21 17 13 1 20 22 20 14 12 9 40 33 33 27 24 20 43 30 24 20 27 23 16 14 14 27 19 15 16 10 15 8 1998 1999 2000 2001 Northeast Midwest 2002 2003 2004 2005 2006 2007 2008 2009 South West Less than 10 percent of all plants with equipment budgets of $1 million or more are located in the Northeast. That’s the lowest percentage for this region since 2006. Size Matters The unusually high response rate from large plants skewed our results in favor of those facilities. However, even when we normalized the plant distribution to make our projections, we found that capital spending by smaller factories will diminish next year, while spending by large facilities will increase. Perhaps small plants are being more affected by the credit squeeze than large ones. Ordinarily, plants with fewer than 100 employees represent 65 percent of ASSEMBLY’s readership. However, such facilities will account for just 15 percent of total equipment spending in 2009, compared with 22 percent in 2008 and 31 percent in 2007. All totaled, plants with fewer than 100 employees will spend $432.3 million on assembly technology next year, or 31 percent less than what these plants spent in 2008. Conversely, plants with more than 500 employees represent only 8 percent of ASSEMBLY’s readership. Yet these facilities will account for 49 percent of total equipment spending next year, compared with 33 percent in 2008 and 24 percent in 2007. For the first time since 2002, plants with more than 500 workers represent the majority of all Your Guide To Wire Processing The direction to higher production rates is clear with Schleuniger’s cut strip terminate machines. Crimp to Crimp Crimp to Crimp (closed barrel) Seal to Seal Twist / Tin to Seal Double Crimp (same terminal/seal) CrimpCenter 62 CrimpCenter 63 CrimpCenter 64 CrimpCenter 64HD CrimpCenter 65 CrimpCenter 66 www.schleuniger-na.com/cst_am (603) 668-8117 28 ASSEMBLY / December 2008 www.assemblymag.com http://www.schleuniger-na.com/cst_am http://www.schleuniger-na.com/cst_am http://www.assemblymag.com
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