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Economic Forecast 22 MoldMaking Technology January 2015 Coming Back Strong By Steven R. Kline Investment in machining centers, injection molding machines and complete molds is projected to increase significantly in 2015. Our latest capital spending survey reveals the trends leading to this upswing. T he mold and die industry has come roaring back the last couple of years, and the trend should continue in 2015. U.S. manufacturing companies say they plan to invest very heavily in machine tools to manufacture molds, injection molding machines and in molds themselves. In fact, a survey of equipment buyers predicts that the mold industry will increase spending by more than 30 percent on these types of purchases compared to 2014. Last summer, Gardner Business Media surveyed readers of MoldMaking Technology and three of its sister publications, asking them about their plans for spending on capital equip- ment in 2015. The result is Gardner's Capital Spending Survey. To realize how believable this projected increase in capital equipment spending is, consider: • According to the U.S. Federal Reserve, capacity utilization at automotive parts manufacturers was 88 percent in July—the high- est level in 25 years—reflecting that automakers are busier than they have been in years. More models, higher vehicle sales and production, stepped-up marketing, and easy-to- get below-prime car loans are some contributing factors. • The staggering number of new car models set to begin production in the next few years means a lot more plastic injection molding capacity is needed. Also, the complexity of molds is increasing as automakers design distinctive features into bumpers, taillights and other plastic parts (see Chart 1). • Medical companies are scrambling to keep pace with an aging population here and abroad. People are getting older, and as they do, their knees, hips and backbones are wearing out. • Reshoring and near-shoring, particularly in the appliance industry, are picking up momentum. Having production facili- ties and factories close by is proving to be a smart strategy. If your company is considering the purchase of capital equipment next year, take these projections seriously. They show that you are not alone in your confidence to invest in manufacturing in the U.S., and you may have to wait longer and pay more for the equipment you need to get on your shop floor. Also, pay attention to what other companies (and your competi- Plastic product production has made a tremendous recovery since its lows in early 2009. Current production levels are near the highs reached in the late 1990s and early 2000s. Plastics Product Production Recovers CHART 1