We know how much the finishing industry is influenced by other sectors, and how volatile business can be depending on the economic state of other industries. For that reason, it’s important to stay apprised of economic forecasts in related areas, because this is a great way to get an idea of what business will be like for the coming years. So without further ado, here's a brief overview of the economic forecast for the finishing industry in 2017.
The Automotive Industry is Robust
We’re all aware that the automotive industry was seeing record sales prior to 2007, and the great news is that car and truck sales have returned to those levels, setting new records in 2016. Though off to a somewhat slower start for 2017, there are a few reasons why we can expect sales to be strong over the next few years, including that American households have a decreasing debt-to-income ratio, which means that people will have more flexibility with their automotive budgets. Moreover, there is an increasing number of new car and truck models that are expected to make their way to market over the next few years, and this will likely lead to increased demand.
Machine Tool Industry Is in Recovery
The American machine tool industry peaked in 2014 and then entered into a recessionary phase, and more good news is that the industry has now entered the first stage of recovery from that recession. While unit orders aren't expected to increase too much this year, there's a good chance that orders will start to grow once the industry gets further into the recovery phase.
Durable Goods Are Seeing Record Highs
After reaching a record high in 2014, the durable goods manufacturing industry, which includes everything from toys to electronics to automotive parts, has remained stable near that record high ever since, and that is not expected to change this year.
Aviation and Aerospace Are Steady
While the aerospace industry—which includes aviation, engines, parts, missiles, and space products—isn't expected to see any enormous growth this year, it’s not expected to see any major decreases either. Over the next two years, the industry revenues are expected to rise by about 5 percent overall. This could be in part to the fact that there are now five manufacturers in the large commercial jet industry compared to just two back in 2004, and there are more customers and more diverse customers in this industry than ever before.
The finishing industry will always be dependent on related industries, which is why it’s so important to look at economic forecasts when creating short- and long-term plans, setting goals, and devising business strategies for the coming years. The good news is that the major related industries are all holding steady or growing, and that success is expected to continue for at least the next couple of years.
Learn more about identifying and preventing the cause of automotive paint problems. Get your free copy of our Orange Prevention eGuide.