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moldmakingtechnology.com 17 CONTRIBUTOR Michael Guckes is the chief economist for Gardner Intelligence, a division of Gardner Business Media (Cincinnati, Ohio, United States). He has performed economic analysis, modeling and forecasting work for nearly 20 years among a range of industries. He is available at mguckes@gardnerweb.com. and to create lighter models. This will drive the use of differ- ent building materials and thus also new tooling. Medical Trends Another market that consumer spending impacts is medi- cal. U.S. industrial production of medical equipment and supplies in the year-long period ending in October 2017 had fallen nearly 7 percent. Looking at the last decade of U.S. data, indexed production of equipment and supplies was relatively stable between the end of the Great Recession and 2015. Production began to diminish as early as the beginning of the second quarter of 2016. By the third quarter of 2017, production had fallen to 92.4, putting the index at its lowest level in more than a decade. While production has been contracting, pricing continues to increase with a third quarter index reading of 117.7, representing yet another all-time high. Although medical production data is disappointing, demo- graphic data for the United States suggests that the demand for additional equipment will naturally move with the aging of the baby-boomer population and the increased aging of the population born after the boomers. According to the U.S. Census Bureau, "By 2030, more than 20 percent of U.S. resi- dents are projected to be aged 65 and over, compared with 13 percent in 2010." What This All Means Several of the major plastics processing drivers that Gardner Intelligence tracks indicate that the moldmaking industry can expect additional growth in both the short and the long term. New environmental standards and technological advancements in the automotive industry will look to plastics processors for solutions. Demographic trends suggest that the United States will see many years of strong new household formation ahead of it and a need for additional housing, goods and associated purchases. Lastly, other demographic trends suggest that the total number of citizens in their senior years will only increase the need for additional medical goods. Gardner Intelligence survey projections and the Moldmaking Index data both agree with the macroeconomic data that the industry can expect gains in 2018. Stay ahead of the curve with Gardner Intelligence. For more information, visit gardnerintelligence.com. Several industry pressures are provoking original equipment manufacturers to bring new vehicles to market over the next few years. The increase in new models and redesigns will benefit the metalworking and plastics industries. Product Planning: New Model Count • Lots of new/revised product: 315 nameplates in market in 2015 – 350+ by 2020 • 73 New Entries, 159 Redesigns, 150 Facelifts from 2017 forward • Competition to increase – SUVs, HEVs, EVs all a priority • New products will help support strong vehicle sales as consumer seek latest/greatest technologies and designs. Product Freshness LMC Automotive Image courtesy of LMC Automotive. Demographic data for the United States suggests that the demand for additional equipment will naturally move with the aging of the baby-boomer population.