Assembly - December 2008 - (Page 39) $144.2 million on assembly technology in 2009. That’s a 36 percent decrease from 2008, and it’s the lowest total for the industry since 2006. After accounting for 8 percent of total spending in 2008, NAIC 339 will claim just 5 percent in 2009. In 2008, 22 percent of plants in NAIC 339 spent more than $1 million for assembly technology. In 2009, only 11 percent will do so. Fortunately, however, it appears that the million-dollar spenders from 2008 won’t be cutting too drastically, and some plants on the lower end of the spending scale in 2008 will be spending a bit more. In 2008, 9 percent of plants in NAIC 339 spent between $250,000 and $1 million, and 69 percent spent less than $250,000. Next year, 26 percent will spend between $250,000 and $1 million, and 63 percent will spend less than $250,000. The median budget for this industry next year is $100,000, which is the same as 2008. Our survey also provides evidence that the decrease in spending actually began this year. More than half—54 percent—of assemblers in NAIC 339 spent less than 70 percent of their 2008 capital budgets. That compares with 42 percent for all U.S. plants, and it’s the highest percentage of any industry. On the other hand, one reason for optimism is that manufacturers in this industry need additional capacity. Fifty-six percent of assemblers in NAIC 339 are investing in equipment to boost production volume. That’s compares with 45 percent for the nation as a whole, and it’s the highest percentage of any industry this year. In fact, NAIC 339 has exceeded the national percentage for increasing capacity for five straight years. Spending Falls in the Northeast In August, contract manufacturer Plexus Corp. announced that it will close its assembly plant in Ayer, MA. Two months later, another electronics manufacturing service provider, ACT Electronics Inc., announced that it will close its assembly plant in Hudson, MA. Combined, the two closures will result in the loss of 200 jobs. The closures are an indication not just of tough times for Bay State assemblers, but for all Northeast manufacturers. Indeed, just two years ago, Northeast assembly plants were investing heavily in capital equipment, accounting for nearly a quarter of all U.S. spending on assembly technology. Next year, however, the Northeast will represent just 11 percent of total spending. All totaled, manufacturers in Massachusetts, Pennsylvania, New York and the six other Northeastern states will spend $317 million on new equipment in 2009—20 percent less than the 2008 total and half the 2006 total. Compared with the nation as a whole, the Northeast will post a lower percentage of facilities planning to spend more next year than they did this year. In fact, that’s been the case for eight years in a row. Actual budget figures bear this out. Only 14 percent of Northeastern plants will spend $250,000 to $1 million on assembly technology in 2009, compared with 18 percent of all U.S. plants. At the same time, 62 percent of Northeastern plants will spend less than $250,000 next year, compared with 57 percent of all U.S. plants. The median budget figure www.assemblymag.com December 2008 / ASSE M B LY 39 http://www.fanucrobotics.com http://www.assemblymag.com
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