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moldmakingtechnology.com 25 Machine tools, injection molding machines and molds can take a long time to build, especially if customization and automation are required or the molds are more complex. Like all other man- ufacturers, equipment builders want to keep their inventory as low as possible. So, when demand increases rapidly, as the sur- vey indicates it will, they may have a hard time ramping up pro- duction fast enough. As orders build up in the pipeline, delivery times grow longer and longer. Because a significant amount of the capital equipment acquired in the U.S. is imported, shipping times from overseas can exacerbate the problem. Second, capital equipment prices are likely to rise during 2015. This is really as simple as supply and demand. When demand for equip- ment rises rapidly and builders can- not increase the supply as fast as that demand, the price of machines and molds tends to increase. Historical data for the capital equipment mar- ket supports this effect. Price increas- es are even more likely on equipment types that the survey indicates will be in higher demand this year. Third, the longer you wait to buy, the more likely it is you will not be able to buy the equipment you pre- fer and will have to settle for your second or third choice. If you cannot accept the extended delivery time for your preferred machine or mold because you have a new order that must be fulfilled right away, then you will have to settle for the next-best machine or mold that will meet your time frame. If the type of machine or mold you really want is in high demand, then the price could rise to a level that makes your return on investment hard to justify. Wise planners will include detailed contin- gencies that adjust for accepting that second- or third-best type of capital equipment. If you know you are going to buy a significant amount of capital equipment this year, then it may be better to buy soon- er rather than later to avoid potentially longer delivery times and higher prices. This could be a good tactic for staying one step ahead of the competition. More Molding Machines Equals More Jobs CHART 5 More Machine Tools Equals More Jobs CHART 4 More machine tools and injection molding machines equals more durable goods manu- facturing jobs. While most people aren't aware of this, these charts show this has been true for a long period of time. The surge in machine consumption since 2010 has coincided with the frst signifcant increase in durable goods manufacturing jobs in nearly a decade. FOR MORE INFORMATION: skline2@gardnerweb.com / gardnerweb.com/economics/blog