© IHS Markit Analysis | February 24, 2017
Copper-based Wire & Cable index highest in almost five years
"Both events are temporary, though they do tighten the market and support higher prices, at least for a time."
Construction costs rose again in February, recording the fourth consecutive month of price recovery, according to IHS Markit and the Procurement Executives Group (PEG). The headline IHS PEG Engineering and Construction Cost Index registered 55.2 in February, down from 57.7 in January. Strength was evident for materials markets, though for labor markets, the headline index tipped below the neutral point. The materials/equipment price index came in at 58.0 in February, with the materials sub-index showing rising prices in 10 of the 12 categories tracked. Ocean freight from Europe to the U.S. recorded another month of falling prices and electrical equipment prices were flat. Of the remaining 10 categories, the index figure for exchangers, alloy steel pipe, and wire and cable rose compared to January. The copper-based wire and cable index experienced the highest escalation compared to January. The last time the copper index registered this level was back in March 2012. "Copper prices are reacting to the closure of two of the world's largest mines: Grasberg in Indonesia, because of a dispute with government over its export permit, and Escondida in Chile, because of a strike,” said John Mothersole, research director at IHS Pricing and Purchasing. “Both events are temporary, though they do tighten the market and support higher prices, at least for a time.” The subcontractor labor index fell in February. The index came in at 48.6, falling back to its October 2016 level. Regionally, weakness was recorded in the U.S. Midwest and Western Canada. Labor costs rose in the Northeastern United States and Eastern Canada; in the U.S. South and U.S. West, costs remained the same compared to January. The six-month headline expectations index recorded another month of increasing prices. The index moved down slightly from 70.0 in January to 67.5 this month. The materials/equipment index stayed positive, at 71.3, marginally lower than the 72.6 recorded in January. Despite the slight give-back, this figure affirms widespread expectations of higher future prices. Every component showed rising prices, with steel related indexes leading the way. Subcontractor labor price expectations came in at 58.6 in February, lower than the 64.1 recorded in January. Labor costs are expected rise in all regions of the United States and Eastern Canada; they are expected to be soft in Western Canada. In the survey comments, respondents have noted no shortages in supply of materials. Proposal activity has registered an uptick in the recent months, and participants are expressing cautious optimism for 2017.
New group structure at Mycronic aimed securing future growth Swedish creator of production equipment, Mycronic, has grown quite a bit during the last years; both organically but also through acquisitions. And with that growth some structure is in order.
Zenuity and HP Enterprise team up to develop next-gen autonomous driving cars Hewlett Packard Enterprise (HPE) has been selected by Zenuity, a Swedish developer of software for self-driving and assisted driving cars, to provide the crucial artificial intelligence (AI) and high-performance computing (HPC) infrastructure it needs in order to develop next generation autonomous driving (AD) systems.
Honeywell, Lockheed Martin win NASA contracts Honeywell and Lockheed Martin have both announced recent contracts for the supply of key components to NASA’s Orion spacecraft fleet for the upcoming Artemis lunar missions.
Libra Industries welcomes new VP EMS provider Libra Industries has welcomed David Chavez to its leadership team as the new VP of Integrated Business Development.
Sponsored content by CMLCML manufactures Metal Substrate solutions Printed circuit boards (PCBs) plays an important role in our day to day life. Whether it’s the car you’re driving, the phone that you’re scrolling through or computers that you’re sending emails from. What happens when you use heat generating components on a PCB? That’s right, cooling is needed!
Danfoss shuts down site – hundreds of jobs lost Danish industrial group, Danfoss, is taking steps to optimise and strengthen its competitiveness. This will result in a closure of the groups manufacturing site in Kolding, Denmark. Production from the site will be moved to the groups manufacturing location in Poland.
USI builds its third antenna chamber measurement system USI is currently building its third antenna chamber measurement system with a targeted completion date in the first quarter of 2020.
AT&S receives NADCAP accreditation With the NADCAP accreditation, new doors in the aerospace sector has been opened for the Austrian company.
Toshiba Carrier to establish new manufacturing subsidiary in Europe Toshiba Carrier Corporation announced the establishment of a new manufacturing subsidiary in Gniezno, a mid-western city of Poland.
Ericsson opens new R&D site in France Ericsson says it will establish a new R&D site in France with up to 300 employees, accelerating 5G momentum in Europe.
GKN team up with Delta on eDrive technology GKN Automotive and Delta Electronics are collaborating on the joint development that aims to enable the rapid acceleration of next generation integrated 3-in-1 eDrive systems of power classes from 80kW to 155kW.
Samsung’s planning Indian smartphone display plant The South Korean tech-giant is reportedly planning a USD 500 million investment to set up a display manufacturing plant in India.
Elmaticas gets green light to audit SAAB Avionics sub-suppliers. Elmaticas Jan Pedersen successfully completed the Part 21 Subpart G training, regarding auditing of Printed Circuit Boards suppliers for SAAB Avionics Systems earlier this year. Allowing Elmatica to conduct audits of SAAB Avionics sub-suppliers.
Jenoptik to keep its mechatronic activities The Executive Board of Jenoptik AG has decided to stop the process of selling the mechatronic business operating under the brand name VINCORION.
U.S. polysilicon makers laud Phase 1 of China deal The United States’ three remaining manufacturers of polysilicon expressed appreciation to President Trump and praised U.S. negotiators for securing the Chinese commitment to purchase U.S. polysilicon in the first phase of the U.S.-China trade deal.
Dupont explores divestiture of electronics unit Following its recent USD 26.2 billion deal to sell off its nutrition business, DuPont de Nemours Inc. is weighing a divestiture of its electronics unit, according to people familiar with the matter.
AMD bolsters exec leadership team AMD has announced several promotions and one new hire to its senior leadership team, in an effort to enable the company’s continued growth in the high-performance computing, graphics and visualization technologies market.
Webasto opens new battery centre in Jiaxing Webasto has inaugurated its new roof plant and battery center in Jiaxing (Zhejiang Province) close to Shanghai.
Panasonic to expand its manufacturing footprint in India Panasonic is looking to build a new wiring device factory in southern India. The new factory is scheduled to start production in autumn 2021, responding to the increased demand in the country.
Season Group strengthens wireless R&D & manufacturing capability Season Group has invested in, and installed, two high-speed and high-precision wireless communication testers - Rohde & Schwarz’s R&S CMW500 Wideband Radio Communication Tester and R&S CMW100 Communications Manufacturing Test Set.
Rocket Lab expands capabilities in So Cal Rocket Lab announced this week it will open a new facility to serve as its corporate headquarters and provide increased production capacity.
PCB Piezotronics unveils new clean rooms PCB Piezotronics Inc., a wholly owned subsidiary of MTS Systems Corporation, has announced the completion of environmentally controlled clean rooms at their DePew, New York facility.
European loudspeaker company brings production back home Difficulties manufacturing smaller design series among reasons for the decision to return back to base.
China only region to register pure-play foundry market growth Rise of China-based fabless IC suppliers offers increased opportunities for foundries, IC Insights states in a recent report.
Mycronic receives first SLX order Swedish production equipment specialist, Mycronic, has recieved their very first order of its mask writer SLX.Load more news