Leadtime Report
Staff -- Purchasing, 5/4/2006 2:00:00 AM
Pump deliveries are extending
Deliveries of pumps are expanding this year as huge capital investments are made in factories and manufacturing equipment. Buyers across the Midwest have been complaining about slow deliveries for several weeks. Leadtimes for the past two months have risen close to 10 weeks. The supply chain manager for a pump maker in California reports that "the recent huge increase in large capital projects by our customers has slowed our deliveries significantly."
Linerboard stays mostly stable
U.S. linerboard capacity held virtually stable in 2005, declining just 0.2%. While capacity of virgin and recycled capacity is slated to decline 2.1% this year, production capability is projected to rise 1.3% in 2007, especially for benchmark unbleached kraft material. Despite the turmoil in supply, buyers haven't been complaining about deliveries, which have averaged less than four weeks for some time. The boxmakers' trade association says demand isn't strong enough to push a third price hike since October .
Lift truck deliveries slowed
Deliveries of lift trucks are exploding and leadtimes could stay extended for some months ahead. The recovery in nonresidential building construction is boosting lift truck demand as well as other types of material handling equipment. Makers of material handling equipment reported an increase in shipments of 26.4% in 2005. Analysts at Global Insight expect shipments of material handling equipment to increase 12.5% in 2006 and another 6% in 2007.
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