Slight uptick in hourly rates for 2005.* Custom injection molders' machinehour rates were mostly flat last year, though there were signs of a rising trend in the second half. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. survey responses from 117 custom plants, average hourly rates rose 0.6% from June June: see month. to December December: see month. after a similar increase in the first half. The cumulative increase for the year was just over 1%. In both survey periods, almost 80% of respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. left their hourly rates unchanged. But in the second half, 17% raised their rates (by an average of 8.5%) while only 4% lowered them, a 4:1 ratio. That's stronger evidence of a trend than in the first half, when 14% raised rates and 10% dropped them (see table below). Last year was the first time since 2001 that more respondents raised rates than lowered them in any six-month period and was the first time the percentage raising rates reached double digits Double Digits was a pricing game on the American television game show, The Price Is Right. Played from April 20, 1973 through May 18, 1973's show, it was played for a car and used small prizes. . It was also the first time that the average change--though small--was positive rather than negative in any sixth-month period. Apparently, it took five years for custom molders to be able to escape the deflationary de·fla·tion n. 1. The act of deflating or the condition of being deflated. 2. A persistent decrease in the level of consumer prices or a persistent increase in the purchasing power of money because of a reduction in available impact of the 2000 recession and the economic shock of 9/11. More positive signs Custom molders' capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. rose an average of 1.5 points in the second half of 2005 to 56%. It was the first time since 2000 that our semiannual Semiannual An event that occurs twice in a calendar year. Notes: A bond with semiannual coupons would issue payment once every six months. See also: Annual, Bond, Coupon Bond surveys registered two consecutive increases. Northeastern north·east n. 1. Abbr. NE The direction or point on the mariner's compass halfway between due north and due east, or 45° east of due north. 2. An area or region lying in the northeast. 3. custom molders reported the highest utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be for the fourth survey in a row, and South Central molders had the lowest utilization. Fifty-four Adj. 1. fifty-four - being four more than fifty 54, liv cardinal - being or denoting a numerical quantity but not order; "cardinal numbers" percent of respondents predicted improving business conditions in the near term, while only 24% foresaw worsening wors·en tr. & intr.v. wors·ened, wors·en·ing, wors·ens To make or become worse. Noun 1. worsening - process of changing to an inferior state decline in quality, deterioration, declension conditions and 21% expected no change. Optimism was most prevalent prevalent widespread occurrence. in the West and lowest in the N. Central area. Another favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. sign is the 4% gain in new tooling orders reported by 77 mold mold, name for certain multicellular organisms of the various classes of the kingdom Fungi, characteristically having bodies composed of a cottony mycelium. The colors of molds are caused by the spores, which are borne on the mycelium. shops in the survey. That follows a 3% increase in the first half. Those are the first two successive increases in mold orders in these surveys since 2000.
SEMI-ANNUAL CHANGES IN HOURLY RATES
Period Average % Of Molders' Rates That
Ending Change Rose Fell Same
4Q 2000 +1.0% 15% 8% 77%
2Q 2001 -11.6% 26% 47% 28%
4Q 2001 -1.1% 6% 14% 80%
2Q 2002 -1.3% 5% 12% 83%
4Q 2002 -1.5% 6% 14% 80%
2Q 2003 -1.0% 7% 11% 83%
4Q 2003 -0.6% 8% 10% 82%
2Q 2004 -0.6% 6% 7% 87%
4Q 2004 -0.4% 7% 8% 85%
2Q 2005 +0.6% 14% 10% 77%
4Q 2005 +0.6% 17% 4% 79%
CUSTOM INJECTION MOLDERS' MACHINE-HOUR RATES
WITH OPERATOR, PROFIT MARGIN INCLUDED (a) (117 PLANTS)
Dollars Per Hour (High/Average/Low)
4th Quarter 2005
Tonnage Range <50 50-99 100-299 300-499
Northeast $73.21 $80.00 $79.02 $116.20
(ME, NH, VT, MA, CT, $36.82 $41.71 $44.68 $58.16
RI, NY, NJ, PA) $25.00 $25.00 $25.00 $25.00
Southeast $40.00 $62.00 $60.00 $65.00
(DE, DC, FL, GA, MD, $34.16 $38.20 $43.87 $48.92
NC, SC, VA, WV) $29.05 $12.00 $27.10 $27.10
North Central $100.00 $74.53 $81.30 $94.85
(IL, IN, MI, OH, WI, IA, $35.74 $34.91 $39.86 $46.73
KS, MN, MO, NE, ND, SD) $14.91 $17.62 $18.78 $23.24
South Central $42.00 $49.68 $57.00 $80.00
(AL, KY, MS, TN, AR, $26.51 $31.06 $36.58 $46.50
LA, OK, TX) $11.52 $12.87 $16.26 $21.53
West (CA, OR, WA, $75.00 $75.00 $140.00 $86.00
AK, HI, AZ, CO, ID, MT, $40.07 $43.27 $53.58 $66.30
NV, NM, UT, WY) $15.46 $17.66 $19.87 $45.00
National Average (c) $35.66 $38.01 $43.51 $53.17
Average Change in Hourly Rates
In Second Half 2095: +0.6%
Tonnage Range 500-749 750-999 1000-1499 1500-1999
Northeast $35.00 $40.00 $81.34
(ME, NH, VT, MA, CT, $35.00 $40.00 $65.67
RI, NY, NJ, PA) $35.00 $40.00 $50.00
Southeast $80.00 $100.00 $125.00
(DE, DC, FL, GA, MD, $70.06 $100.00 $125.00
NC, SC, VA, WV) $60.72 $100.00 $125.00
North Central $108.40 $115.18 $125.50 $179.28
(IL, IN, MI, OH, WI, IA, $62.98 $77.02 $108.56 $132.08
KS, MN, MO, NE, ND, SD) $42.01 $55.20 $81.47 $60.72
South Central $100.00 $108.40 $149.05 $182.93
(AL, KY, MS, TN, AR, $56.58 $70.77 $124.76 $143.24
LA, OK, TX) $21.58 $21.53 $90.00 $96.05
West (CA, OR, WA, $82.80 $98.00
AK, HI, AZ, CO, ID, MT, $82.80 $98.00
NV, NM, UT, WY) $82.80 $98.00
National Average (c) $59.39 $72.96 $99.46 $134.45
Tonnage Range 2000-2999 3000+ Index (b)
Northeast
(ME, NH, VT, MA, CT, 84
RI, NY, NJ, PA)
Southeast
(DE, DC, FL, GA, MD, 83
NC, SC, VA, WV)
North Central $175.00 $374.67
(IL, IN, MI, OH, WI, IA, $263.08 $349.38 78
KS, MN, MO, NE, ND, SD) $374.67 $324.08
South Central $237.13 $338.75
(AL, KY, MS, TN, AR, $228.71 $281.95 69
LA, OK, TX) $185.92 $242.88
West (CA, OR, WA,
AK, HI, AZ, CO, ID, MT, 100
NV, NM, UT, WY)
National Average (c) $255.77 $335.03
(a) An adjustment factor is used where data did not already include
profit and labor. (b) Relative to highest-cost region (which equals
100); value shown is a weighted average for all size ranges.
(c) Weighted geographically according to PLASTICS TECHNOLOGY'S
Manufacturing Census.
CUSTOM INJECTION
CAPACITY UTILIZATION
2nd Qtr 2003 51
4th Qtr 2003 55
2nd Qtr 2004 55
4th Qtr 2004 51
2nd Qtr 2005 54
4th Qtr 2005 56
Note: Table made from bar graph.
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