Data shed light on price, cost, and demand trends

By Elizabeth Baatz -- Purchasing, 6/3/1999 2:00:00 AM

A funny thing has been happening in the new economy. The national unemployment rate is as low as it's been in many years. Business investment spending on high-tech equipment is still soaring. Economic growth is booming, with 1999 looking like it may be the fourth consecutive year of 4% GDP growth.

Through it all, inflation has declined to near zero. The Federal Reserve Board, which used to primarily worry about accelerating inflation, now has to keep an eye open for deflation. Indeed, during February's deliberations, a number of Board members suggested the inflation process is not well understood these days.

Coming to some understanding of deflation hasn't been easy for the FRB, nor has it been easy for buyers of maintenance, repair, and operating (MRO) supplies. For one thing, while falling prices have been the rule for many basic commodities like metals, petroleum, and paper, prices for many MRO supplies have been stubbornly refusing to fall.

Why are prices for industrial valves rising when prices for the metals that go into making valves are falling? Why are prices for plastic foam products up while prices for foam inputs such as refined petroleum products and industrial chemicals are plunging? In short, MRO buyers want to know: Why does the connection between what a supplier charges for its products and what a supplier pays to make its products appear to be at least somewhat disconnected?

The answer to this question can be complex. To some degree, MRO producers are sheltered from their ultimate customers, thanks to distributors. Instead of purchasing ball bearings from a ball-bearings manufacturer, MRO buyers make their purchase through a distributor that handles many products, including ball bearings. The gap between manufacturer and customer makes it more difficult for a customer to hold a manufacturer accountable for its pricing policies. With a distributor acting as the go-between, a customer doesn't always know where a price increase first took wing. Was it the manufacturer's idea to boost prices or the distributor's?

Another obstacle that prevents MRO buyers from fully tapping into deflation-related savings is volume. Buyers aren't always dealing in large quantities. Those making smaller purchases are marginal customers. When the economy is booming, as it has been for much of the '90s, marginal customers are more likely to pay a demand premium for the items they purchase.

For example, manufacturers of plastic foam products have increased prices over the past year despite realizing significant cost savings. Why? Well, the obvious reason is that they can. Producers in SIC 3086 are favored with U.S. end markets that are growing at an annual rate of 12%. A smaller buyer trying to get a price cut in this environment will have a tough row to hoe.

On top of having to deal with intermediaries and low-volume purchases, MRO buyers also are faced with the sheer force of history. In the 1970s and early '80s, when inflation was a dominant feature of the economy, producers of many MRO goods fell into the habit of raising prices on a scheduled basis, usually annually. Every January, a new catalog was published and list prices advanced a few percentage points.

In those days, these price hikes often were taken for granted and were not challenged because buyers had a sense that some inflation was indeed present in the economy, and a price increase of 2%-4% was fair. This habit of increasing prices has never completely gone away, especially among industries that make MRO equipment. Now, instead of price hikes of 2%-4%, we see hikes in the 0.5% to 2% range. Such small increases tend to stay below a buyer's price radar when purchased quantities are small and when a buyer's attention is spread across a wide array of MRO items.

In the next few pages, data will be presented from Thinking Cap Solutions' ICE-Alert model that will shed some light on price, cost, and demand trends among industries that make MRO products. In particular, the focus will be on industries in which product prices have not fallen to keep pace with falling costs. These are industries that offer negotiation opportunities for buyers.

By perusing these examples, buyers will develop a clearer picture of how general deflation trends currently are affecting the prices of basic commodities used in the manufacture of maintenance and repair supplies and equipment. It's time for MRO buyers to garner their share of the deflation dividend that buyers of non-MRO items have been tapping into for at least the past couple of years.

Paints and coatings

For MRO buyers, getting a handle on price and cost trends in the paints industry requires some finesse. The SIC for paints and allied product is 2851. This industry includes manufacturers of architectural paints as well as makers of automotive finishes and other OEM coatings. Nonetheless, buyers of paints used in MRO applications would do well to drive for lower prices today.

The cost of producing paints has been falling. Over the same March-to-March time frame, we see the industry's direct manufacturing costs have fallen 4.2% thanks to a 5.4% drop in the cost of direct materials used in production such as plastic resins and chemicals. Interestingly, titanium dioxide prices have risen, up 5.7% from March 1998, but producers' materials budgets appear to have weathered this cost hike without too much trouble.

Furthermore, indirect costs in the paints and coatings industry have been kept under control too. Indirect wages, salaries, and benefit costs rose just 1.5% from the fourth quarter of 1997 to the fourth quarter of 1998. And fuel costs fell a whopping 43% over the same period.

Meanwhile, architectural-coatings prices have been percolating. In March 1999, average prices for solvent-type undercoat and primer paints rose 5.7% from year-ago levels and prices for interior/exterior floor and other enamels jumped 9.1%. Overall, prices in the paints and coatings industry rose 1.6% from March 1998 to March 1999.

Driven by the combination of falling materials costs and rising prices, the paints and coatings industry spent just $59.42 on direct manufacturing and indirect costs in the final quarter of 1998. ICE-Alert analysis shows this was the lowest spending level of the past decade and, compared to 1991, represents a $5.67 boost to margins for every $100 of product sold. Paint buyers who attack this margin gain should be able to at least fend off any further price hikes and perhaps even garner a price cut.

Adhesives and sealants

The adhesives and sealants industry (SIC 2891) makes industrial- and household-type adhesives, glues, caulking compounds, sealants, and rubber cement. Unfortunately for buyers, the inflationary drive among adhesive manufacturers is alive and well. In March 1999, average product prices rose 1.8% from year-ago levels with prices for synthetic rubber and resin adhesives rising a budget-busting 3%. Data from the ICE-Alert model show, for the year ending February 1999, the domestic end markets that buy adhesives and sealants grew at a 6.1% rate. That's faster than GDP growth and far faster than growth rates for most other manufacturing industries. In addition, growth has been outpacing the general economy for more than two years.

With such strong demand, buyers have seen escalation in average product prices for adhesives and sealants accelerate. Since January '97, the average product in SIC 2891 has recorded a price increase of 4.4%. On the surface, such an increase doesn't look too bad during a period of strong demand. But buyers must look at a bigger picture. Not only have prices increased 4.4%, but the cost of making a typical unit of output has fallen 8.6% over the 24-month period. Thus, the true demand premium burdening buyers is both the expense of higher product prices and the forfeited cost savings that have gone to SIC 2891's bottom line instead of being passed along to customers.

How does a MRO buyer fight against the tides of strong demand? It never hurts to make sure a supplier knows you are keeping an eye on price and cost trends in its industry. No one should begrudge a supplier of benefiting from a healthy economy, but at the same time, suppliers should be reminded that strong markets grow weak and that charging customers a demand premium now will make them more likely to shop around later when product availability improves.

Lubricating oils

The lubricating oil and grease industry (SIC 2992) has to weather the ups and downs of volatile petroleum markets. The tactic the industry tends to use is: Raise prices steadily every year. Earlier in the current economic expansion, this tactic largely shielded buyers from rapidly rising crude oil and basic chemical costs. In the past two years, however, the lube industry's pricing strategy means that buyers have not tapped into a huge pile of deflation-related cost savings.

Data from the Bureau of Labor Statistics report average prices for lubricating oils and greases rose 0.4% over the 24-month period ending in January '99. Estimates from the ICE-Alert model show that, over the same period, the direct cost of manufacturing a typical unit of industry output has fallen 17.3%. By failing to pass along these savings, producers have seen a potential margin windfall of $13.02 per $100 of product sold. A small portion of this windfall (about 11¢) has been offset by inflation-related changes in overhead spending.

Stable product prices and falling costs have reshaped the manufacturing budget for lube oil producers. While producers have seen spending in some portions of their budgets rise, decreases in materials costs have swamped the budget. Bottom line: Producers have little cost-based justification for holding back materials-related savings from buyers. They can't, for instance, use higher wage rates or higher transportation costs as an excuse for not passing along savings.

For the buyer looking to tap into cost savings accumulated by makers of lubricating oils and grease, here are some important statistics: Since March '97, costs associated with refined petroleum inputs have plunged 32%. Additive costs have fallen an estimated 4.5%. Combined, these declines have helped reduce per-unit direct materials costs by 17%. And while wage rates paid to production workers are up 6% over the past two years, labor costs contribute just 5% to the industry's total manufacturing bill. Materials costs, on the other hand, make up about 90% of spending on direct manufacturing. These statistics should be at the heart of a dialogue between buyers and sellers of lubricating oils and greases.

Hand tools and saw blades

The hand tools (SIC 3423) and saw blades (SIC 3425) industries may be a bit tougher for buyers to attack. First of all, these products are sold largely through industrial distributors and it is hard to sort out manufacturers' profit gains and distributors' gains. Also, these two industries make a wide variety of products, all with diverse pricing patterns.

For example, from March 1998 to March 1999, the average price of screwdrivers fell 1.3%. But the average product price of torque wrenches rose 5.7%, and the price of shovels, spades, and scoops jumped 14.1% over the same time period. All these products are subsumed within the hand tools industry.

Nonetheless, because the major materials input for hand tools and saw blades are metals, and metals prices have plunged so dramatically this past year, MRO buyers may find it worth their while to bring some industry cost analysis data to their distributor before inking that next big contract. Some simple statistics will make the cost/price picture clear.

In the hand and edge tools industry, between March 1998 and March 1999, the average product price rose 1.1%. Meanwhile, the average direct costs to produce hand tools fell 2.3% over the same time, thanks to sharp cost declines in carbon steel and alloy steel. In the handsaws and saw blades industry, average product prices actually fell 0.2%. But manufacturing costs, again due to metals price deflation, dropped 4.1%.

Heating equipment

Buyers who are working with factory managers to keep heating equipment up and running might want to look into the prices being paid for gas and oil burner parts. In the March 1998 to March 1999 period, the average price for parts used in gas burners jumped 7.7% and the price for parts and attachments for commercial and industrial oil burners rose 2.5%. Analyzing ICE-Alert data for the industry that makes these parts, we see that the cost performance for the non-electric heating equipment (SIC 3433) industry simply does not justify these hikes.

According to the ICE-Alert model, producers of gas and oil-burning boilers, furnaces, and parts enjoyed a 1.4% drop in direct manufacturing costs from March 1998 to March 1999. In contrast, average prices for all the products made by the industry rose 1.6%. This cost/price disparity meant that the direct manufacturing costs to make $100 worth of equipment and parts fell to $55.63 in March 1999, down from $57.29 a year earlier.

Will this $1.66 per $100 of product be pocketed as a margin gain for parts and equipment makers. Or will purchasers see some of the deflation bonus too? Getting a price cut won't be easy, but buyers who use falling steel prices as a negotiation opening may just be able to garner a piece of the deflationary action.

Industrial valves

Industrial valves manufacturers (SIC 3491) appear to be a textbook case of a habitual price hiker. In 1996, producers increased average tags 3.1%. In 1997 prices were hiked 2.4%. And in 1998, buyers saw yet another jump of 2.3%. Though these figures don't suggest wild, out-of-control inflation, the data are certainly inconsistent with the general deflation trend that one reads about in the newspaper. These price trends are also inconsistent with the cost experience for the typical producer of industrial valves.

How inconsistent? Well, since March '96 the transaction price for the average industrial valve product has jumped 7.8%. Over that same 36-month period, the cost of making the typical industrial valve product has fallen an estimated 1.5%. Producers in SIC 3491 have seen much of their savings come from lower metals costs, especially costs associated with basic copper, aluminum, and steel mill shapes. Lower metal costs have brought about an overall materials-related per-unit cost reduction of 4.8%.

A portion of materials cost savings has been wiped out by higher wage rates for production workers, up 8.7% in the last 36 months, and by a 9% increase in the cost of delivering raw materials to the factory floor. Higher wage and transportation rates, however, have not completely negated materials-related cost savings. And nonetheless, cost changes in the industrial valve industry certainly do not justify a three-year price increase of 7.8%.

So, what has the disparity between price and cost escalation trends meant to buyers of industrial valves? Industrial valve makers have seen spending on raw materials reduced by an estimated $4.23 for every $100 of product sold. About $3.83 of these savings have made its way to SIC 3491's collective bottom line, or 3.83% of a buyer's invoice in January '99.

Hoists and cranes

Manufacturers of industrial hoists, cranes, and monorail systems (SIC 3536) are doing a dandy job delivering deflation's windfall to their bottom line, especially in the past year. But buyers of hoists and cranes have seen none of the benefits of falling costs. From March 1996 to March 1998, prices for the average hoist and crane product sold to industrial, commercial, and marine buyers rose 9.1%. Looking at just the past year, from March 1998 average prices rose 2.4%. For parts and attachments sold separately for cranes and monorails, average prices rose 3.6% from March 1998 levels.

The cost to manufacture, meanwhile, inched up just 1.9% from March 1996 and actually fell 0.6% from March 1998. As with many other MRO-related products, the key to the recent cost deflation boon has been falling metals costs. Carbon steel plates and nonferrous castings are two key components in the industry's bill of materials. Prices for these inputs have fallen 11.5% and 2.1% for steel plates and castings, respectively, over the March 1998 to March 1999 time frame.

As a result of the combined impact of cost deflation and continued product price inflation, estimated margins in the hoists and cranes industry have been improving, albeit slowly. In March 1999, for every $100 worth of product sold, the industry spent about $46.60 on direct materials, labor, and inbound freight costs. That's $1.45 per $100 less than a year earlier. Assuming the cost of capital investments and indirect salaries did not balloon, then buyers of hoists and cranes have some room to push for a cut of the deflation boon.

Welding apparatus

Buyers of welding and soldering equipment may feel that a modest 0.8% hike in gas welding and cutting equipment prices from March 1998 to March 1999 was totally bearable. Or perhaps the 1.4% price jump in arc welding metal electrodes was OK. Or even perchance the 2.2% hike in arc welding machines average prices didn't trouble.

But once again, after taking into account the effect of deflation on the materials bill of the average welding apparatus manufacturer, any price hikes seem too high. In the past year, the average direct manufacturing cost bill in the welding apparatus (SIC 3548) industry fell 2.1%. A 3.9% drop in direct materials costs contributed to the industry's health and well-being. Key materials such as carbon steel sheet and strip, copper mill shapes, aluminum mill shapes, and carbon steel wire all contributed, with price declines of 11%, 10%, 8%, and 5%, respectively.

The upshot of all this metals deflation, combined with the unwillingness or inability of producers to pass along commensurate product price cuts, means inflation-adjusted margins are sitting pretty. From a peak of nearly $62 in January 1989, the industry's direct manufacturing costs to produce $100 worth of product fell to 52 by March 1998 and fell again nearly another $2 to $50 by March 1999. Translation: The effect of product price inflation coupled with materials cost deflation means producers are enjoying a significant margin boost.

Demand for welding apparatus appears to be starting to slack off. The key end markets that buy welding equipment--electric utilities, car manufacturers, and construction--grew at a 3.3% annual rate in February 1999, down from a 5.4% rate a year earlier. So now may be a good time for MRO buyers to start a dialogue with welding suppliers about holding down future price hikes.

Pumps and pumping equipment

The cost to manufacture pumps have not fallen into a deflationary zone yet, but direct manufacturing cost escalation in the pumps and pumping equipment (SIC 3561) industry has come to a near standstill. From March 1998 to March 1999, direct manufacturing costs rose just 0.05%. A 3.3% hike in direct labor costs and a 4.1% rise in inbound freight costs were offset almost completely by a 0.8% drop in direct materials costs. With direct materials accounting for nearly 80% of all direct manufacturing costs, just a small deflationary move in materials costs can have a big effect on industry margins.

But prices for pumps and pumping equipment have not budged at all. In March 1999, average industry product prices rose 1.9% from March 1998 levels and 7.5% from March 1996 levels. For MRO buyers, the price story recently has been even rougher as average prices for pumping equipment parts and attachments rose 3.1% in the past year alone.

Manufacturers of pumps haven't completely ignored the price/cost trends. As their costs have trended downward, product price escalation has trended down too. With the cost escalation near zero now and showing no signs of perking up, despite the gains in labor costs, buyers have an opportunity to open up new negotiations. Pumps suppliers will want to play the wage card as, indeed, direct wage costs are accelerating. But labor costs account for only one-fifth of the direct manufacturing bill.

Buyers will want to focus on the effect that inflation has had on industry margins. With product price escalation easily outrunning costs, it is estimated that manufacturers earned nearly $1 extra for every $100 worth of product sold from March 1998 to March 1999. That's not a huge deflation bonus, but buyers who keep track of cost/price trends may have some room to wiggle.

Bearings

The ball and roller bearing industry (SIC 3562) is yet another big winner in the U.S. deflation derby. Over the past three years, producers have increased average product prices by 5.3% while the cost of making a typical unit of output has risen just 1.4%.

Recently, the bearings industry has benefited from strong deflationary trends in basic metal commodity markets. These savings have translated into a three year, 1.4% decline in per-unit direct materials costs and have been used to partially offset a 5.9% increase in wage rates paid to production workers and a 9.7% increase in the cost of getting raw materials to the factory floor. Taking into account all elements of direct costs, per-unit manufacturing costs have been limited, as already noted, to just a 1.4% increase. With the price of a typical ball and roller bearing product rising faster than the cost of making it, product cost as a percentage of price has gone down. In the final quarter of 1998, $100 worth of product sold to buyers cost roughly $71.59 to produce. (This figure includes both direct and indirect expenses.) Three years ago, $100 of product cost $73.41 to produce, or 2.9% more.

For those who purchase ball and roller bearings directly from producers, trying to capture some of this deflation windfall is straightforward. The buyer and manufacturer engage in a face-to-face negotiation process. Capturing this windfall, however, grows more difficult when a buyer deals with an intermediary rather than with the manufacturer. The cost data discussed above don't take into account changes in a distributor's cost structure. That being the case, is an MRO buyer out of luck when it comes to using cost/price analysis based on ICE-model data? The answer is no.

If, for example, 50% of the price a distributor charges its customer is based on its cost of acquiring ball and roller bearings, then a buyer can still hope to see half of the deflation savings achieved by ball and roller bearing manufacturers passed along to them. And if a portion of a distributor's overhead is predicated on the cost of ball and roller bearings, that too should reflect deflation-related savings in SIC 3562.

Process control instruments

Last but not least in the roundup of MRO industries that appear to be enjoying a deflationary cost boost, look at the industry that makes process control instruments. This industry makes a wide variety of instruments, the prices for which rose 1% from March 1998 to March 1999. However, looking at specific product lines, the process control instruments (SIC 3823) industry hides some of the biggest inflationary trouble spots for buyers.

For example, in March 1999, average prices for differential pressure-type flow instruments rose 10.1% from March 1998 levels. Multifunction process computer prices jumped 7.1%. Other liquid analyzer prices rose 6.7%. And average prices for controllers used in temperature instruments increased 4.3%.

These price hikes were all the more surprising given the cost performance of the industry. In March 1999, direct materials costs fell 2.3% from a year ago. So despite a 4.3% uptick in direct labor costs, the industry's overall direct manufacturing costs declined 0.6%. Here again, we have an example of an industry enjoying the benefits of cost deflation yet apparently being slow to pass along price reductions to buyers.

This report was prepared using data from Thinking Cap Solutions, Inc. Readers who want to find out more about the monthly ICE-Alert report on industry price, cost, and demand trends for buyers, please contact Thinking Cap Solutions, Inc. in Port Angeles, WA by telephone at 360-452-6159 or e-mail at thinkcap@olypen.com.

Note: All price data are from the Bureau of Labor Statistics Producer Price Index program. Cost data are from Thinking Cap Solutions' proprietary industry cost model based on inputs from the Census of Manufacturers, Annual Survey of Manufacturers, U.S. Bureau of Economic Analysis Input/Output Model, U.S. Commerce Department M3 reports, and Federal Reserve Board economic data. Margin analysis looks at the impact of cost/price escalation trends only and does not factor in the effect on margins of changes in productivity, product mix, or capital investment.

MRO industries with the biggest margin gains

The effect of deflation trends on a multitude of industries that make MRO-related products has been to increase industry margins. In most cases, as the table illustrates, industries are boosting margins by raising prices for the average product sold while the direct manufacturing cost of producing the average product falls. This table shows the percentage change from March 1998 to March 1999 in average product prices for each industry and direct manufacturing costs. "Margins" shows the estimated impact of inflation/deflation trends on margins for every $100 worth of product sold.

Code Industry Price % Cost % Margin per $100

2891 Adhesives & sealants 1.8 -4.2 $3.45

2542 Metal partitions & fixtures 1.4 -4.1 $3.32

2992 Lubricating oils & greases 0.3 -4.7 $3.22

3612 Transformers 0.4 -3.9 $3.03

2851 Paints & allied products 1.6 -4.2 $2.90

3534 Elevators & moving stairways 1.8 -1.9 $2.84

3955 Carbon paper & inked ribbons 1.1 -2.2 $2.34

3429 Other hardware 0.0 -3.9 $2.32

3491 Industrial valves 3.3 -1.8 $2.29

3996 Hard surface floor coverings -0.6 -4.6 $2.20

3425 Hand saws & saw blades -0.2 -4.1 $2.16

3621 Motors & generators 0.7 -2.7 $2.14

3086 Plastics foam products -0.3 -3.5 $2.08

3492 Fluid power valves & hose fittings 1.7 -2.0 $1.94

2842 Polishes & sanitation goods 1.9 -2.7 $1.91

3548 Welding apparatus 1.6 -2.1 $1.90

3563 Air & gas compressors 2.0 -1.1 $1.85

3585 Refrigeration & heating equipment 1.8 -0.9 $1.85

3535 Conveyors & conveying equipment 2.0 -0.9 $1.75

3423 Other hand & edge tools 1.1 -2.3 $1.75

3562 Ball & roller bearings 0.9 -2.3 $1.69

3452 Bolts, nuts, rivets & washers -0.5 -3.3 $1.66

3433 Heating equipment, except electric 1.6 -1.4 $1.66

2273 Carpets & rugs -0.9 -2.9 $1.48

3536 Hoists, cranes & monorails 2.4 -0.6 $1.44

3991 Brooms & brushes 1.4 -1.1 $1.27

2841 Soap & other detergents -0.7 -3.0 $1.26

2761 Manifold business forms -1.5 -4.2 $1.25

2448 Wood pallets & skids 0.5 -0.8 $0.95

3561 Pumps & pumping equipment 1.9 0.0 $0.93

3823 Process control instruments 1.0 -0.6 $0.63

SOURCE: THINKING CAP SOLUTIONS, INC.

Some product line prices still soar

This table shows 50 MRO-related products which had the fastest growing price hikes between March 1998 and March 1999. Even though industry costs are moving with a deflationary rhythm, many product lines have yet to catch the new beat. The data for this table was collected from the Bureau of Labor Statistics Web site (www.bls.gov/). Original data can be found by logging onto the BLS Web site and clicking on data then clicking on series report. Use the codes below to retrieve the data. Precede each code with the prefix PCU and replace the dash with a # sign. For example, to retrieve price data for fiber cans, type PCU2655#22117. Price indexes are based to 100 in the base period indicated in the table below.

BLS

Code Product Index base Mar-98 Mar-99 % change

2541-1 Wood partitions, shelving & lockers Dec-83 117.9 122.9 4.2

2761-253 Unit set carbon manifold forms Dec-83 179.0 198.7 11.0

2842-3 Specialty cleaning & sanitation products Jun-83 127.4 131.5 3.2

2851-115 Enamels & tinting bases, including floor enamels Dec-88 130.1 142.0 9.1

2851-125 Primer exterior paint, solvent type Feb-97 101.4 107.2 5.7

2851-3 Special purpose coatings, including all marine coatings Jun-83 179.4 188.3 5.0

2851-531 Thinners for dopes & lacquers & oleoresinous thinners Jun-83 190.4 197.9 3.9

2992-12113 Industrial metalworking fluids Dec-80 131.4 135.6 3.2

3291-71501 Nonmetallic coated abrasive belts Dec-80 201.2 210.4 4.6

3423-11325 Torque wrenches Jun-83 177.6 187.7 5.7

3423-611 Shovels, spades, scoops, telegraph spoons & scrapers Jun-83 187.1 213.4 14.1

3433-313 Gas-fired cast iron heating boilers Jun-80 170.1 178.2 4.8

3433-66141 Gas-fired infrared heaters Jun-80 161.1 169.5 5.2

3433-81105 Parts/attachments for gas burners Jun-80 203.1 218.8 7.7

3433-9 Solar heating equipment Dec-93 114.9 122.5 6.6

3452-621 Pins, machine type (nonaerospace fasteners) Jun-82 128.7 139.1 8.1

3491-1 Gate, globe & check valves Jun-91 130.7 141.2 8.0

3491-2 Valves for water works Jun-91 120.9 125.5 3.8

3491-4 Butterfly valves, all metals, pressures & types Jun-91 109.5 121.1 10.6

3535-319 All other unit handling conveyors, incl. pallet, portable, tow Dec-95 104.2 107.9 3.6

BLS

Code Product Index base Mar-98 Mar-99 % change

3535-51114 Pneumatic bulk handling conveyors Aug-84 130.0 136.5 5.0

3536-460 Parts & attachments for cranes & monorail systems Dec-84 121.3 125.7 3.6

3537-111 Motorized non-riding handtrucks Dec-79 145.3 149.9 3.2

3537-175 Pallet loaders & unloaders Jun-94 104.5 107.8 3.2

3541-A Boring & drilling machines Dec-92 104.9 113.7 8.4

3545-16265 High speed steel point machine tools Jun-95 100.4 106.8 6.4

3545-18214 Machine tool carbide inserts, pressed to size Jun-83 141.2 146.4 3.7

3545-265 Micrometers & calipers for machine tools Jun-83 150.8 155.6 3.2

3545-312 Turning tool holders for inserts & bits Jun-83 163.6 169.2 3.4

3546-182 Armature mounted drills Dec-80 167.1 174.3 4.3

3561-6 Parts & attachments for pumps & pumping equipment Dec-83 167.2 172.4 3.1

3562-30112 Precision cylindrical roller bearings Jun-89 165.4 173.2 4.7

3562-32124 Single row spherical roller bearings Jun-83 108.3 112.6 4.0

3562-417 Mounted ball bearings, unit and/or split mounted Jun-83 174.6 181.3 3.8

3563-12 Gas compressors Jun-84 156.0 163.1 4.6

3563-2 Air & gas compressor & vacuum pump parts Jun-84 126.8 132.8 4.7

3585-2 Unitary air conditioners Dec-82 120.5 128.1 6.3

3612-1 Distribution transformers Jun-81 129.9 136.4 5.0

3621-131 Permanent magnet motors, servo-type Jun-92 113.1 116.8 3.3

3621-184 Permanent split capacitor motors Jun-92 107.8 112.7 4.5

3822-12104 Temperature responsive electric building controls Jun-94 106.6 112.1 5.2

3823-105 Industrial multifunction process computers Jun-83 168.4 180.3 7.1

3823-20145 Controllers (temperature instruments) Jun-83 162.7 169.7 4.3

3823-501 Differential pressure type flow & liquid level instruments Jun-83 131.1 144.3 10.1

3823-505 Turbine, mass-flow & other flow instruments Jun-83 153.1 158.6 3.6

3823-781 Other liquid analyzers Jun-83 103.2 110.1 6.7

3823-801 Electrical & electronic measuring process instruments Mar-91 120.0 124.7 3.9

3824-369 Centrifugal tachometers, event recorders & other counters Feb-89 107.7 113.2 5.1

3991-313 Industrial brushes, except maintenance brushes Dec-85 138.3 142.9 3.3

SOURCE: U.S. BUREAU OF LABOR STATISTICS. COLLATED BY THINKING CAP SOLUTIONS, INC.