Electrical Components

Lack of credit is a drag on the global economy, but the new demand for essentials in the BRICS continues to drive growth. The fact that the west has gone "LEAN" means that no inventories are available to fulfil current demand, so we are seeing more industrial activity for replacements than would be expected at this level of economic activity. Due to no one having spares or inventory, when something is needed, it just has to be purchased, at the current market price.

I think that this lean thinking has prevented the current indutrial cycle from going in the tank, as lack of inventory keeps production much closer to current demand, rather than disconnected by spares or inventory.

milo

Energy projects around the globe will keep the global industrial economy afloat and help it rebound. Nuclear, wind, oil-drilling and other large-scale energy projects look good for the next few years, in particular for the US, but also for India, China and Russia. Look to this past month's GE Energy deal with Spain's Iberdrola for a gas turbine installation in Algeria. Also, banks will start passing on lower interest rates and consumers looking for a housing upgrade deal will help re-bound the US housing market.

-april05

I think thats right about banks passing on lower interest rates.

I've just started getting the 0% APR checks from my credit card companies in the mail for balance transfers and such, hadn't see n them for a while.

Not sure that the energy projects alone will be the salvation, but they are certainly an important part of keeping industrial production moving. My manufacturing clients haven't had problems getting financing. I think that the loss of 2 million in automotive production in NA in 2008 (from 16.4-14.4 million vehicles) is going to keep a lot of folks on short rations.

nice to meet you.

milo

Hi Milo - Enjoyed reading your comments. Nice meeting you as well. - april05

Industrial Growth is a house of cards, the only thing strong about it is the will to decieve among those claiming a "strong" economy. The financial market had appearances of strength up until it imploded.

So global demand for goods does not drive growth of industrial production?

The auto build in CHINA is estimated to be 10million vehicles this year, US auto demnad down from16 million toaround 14 million.

The addition of 60% of the uS auto demand in China has no effect?

The demand for what we in the west take for granted (basic infrastructure, utilities, transportation, potable water, appliances ) that is not yet widely available in the BRIC countries counts for nothing in your opinion?

milo