Machine Tool Users: Busier and Uniformly More Profitable
Lincolnshire, Illinois, August 31, 2005 - The monthly indexes of business activity and financial strength of U.S. machine tool users stayed essentially steady in July. July 2005 business activity was up slightly from June 2005. Users' ability to pay their bills was down slightly from June, which was the highest level in the last 10 years.
The Charmilles Machining Business Activity Index reached 66 in July up from 62 in June. The Index is created by surveying machine tool users concerning their business level versus three months ago. Any reading above 50 indicates that business activity has improved. The Index was inaugurated in October 2004 and is the only known monthly index of business in the U.S. machining industries. The improvement in business activity was strongest in the Plastic Extrusion Die sector and in the Midwest region. A detailed breakdown of results by geographic region and application/sector is available at charmillesus.com/newsroom/bizindex.cfm.
The Charmilles/USBEF Machining Industry Financial Strength Index reached 400 in July 2005 vs. 161 in July 2004 and 70 in July 2002. Any reading above 100 indicates that machine tool lease payment delinquencies (a good measure of liquidity and profitability) are at a rate below the average rate of 1990 to 1999. As profitability rises, liquidity rises, delinquencies fall and the Index rises. Historical data is available at the Charmilles URL mentioned above.
The approximately 126,000 U.S. companies that use machine tools have about 2 million machine tools and 1 million directly related employees (toolmakers, machinists, operators, etc.). Almost all mid-size to large manufacturing companies use, and periodically purchase or lease, machine tools. Thus, these indices give timely insight into the condition of U.S. manufacturing. The Machining Business Activity Index is a coincident indicator of this key manufacturing sector. The Liquidity Index lags business activity and leads capital investment.
About Charmilles
Charmilles, a Swiss company, is the North American leading supplier of wire EDM, CNC die sinking and manual EDM systems. For more information on the Company's other products and services and those of its sister company, Mikron, supplier of high speed and 5-axis CNC milling machines, contact Gisbert Ledvon, Charmilles, 560 Bond Street, Lincolnshire, IL 60069-4224. Tel: 1-800-CTC-1EDM. Fax: 847-913-5340, or visit www.charmillesus.com.
About USBEF
The Machine Tool Finance Group of US Bancorp Equipment Finance (USBEF) offers manufacturers and vendors, flexible and competitive lease financing for metal cutting, fabrication and plastics and wood manufacturing equipment. As a subsidiary of U.S. Bank, USBEF is one of the largest bank-affiliated equipment finance companies in the nation. Telephone (800) 255-8029 ext.492.
