STATE OF THE INDUSTRY 2020 By Liz Stevens, contributing writer, The American Mold Builder
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hat does 2020 look like for the US economy, American companies and, especially, the mold builders that support the nation’s manufacturing sector? The big picture predictions and onthe-ground feedback for the year reveal optimism and growth. In survey results released by the National Association for Business Economics (NABE) and cited by CNN1, respondents expected the nation’s economy to grow by between 1.1% and 3% in 2020. The survey’s nearly 100 participants indicated that businesses are feeling confident about the economy and that recession fears have taken a back seat. The surveyed economists reported a jump in expectations for job growth, even while the US unemployment rate has reached its lowest point in 50 years and available jobs outnumber the pool of job seekers. The NABE survey found that while a majority of businesses, overall, felt unaffected by 2019’s trade tariffs, the majority of manufacturing, mining and farming companies reported that tariffs had raised costs and lowered sales. Business Wire2 echoes the NABE survey’s tempered optimism. Citing the Business Outlook Report, based on a survey of more than 750 business leaders by accounting and consulting firm LBMC, Business Wire wrote that 83% of survey respondents anticipated growth in 2020. This group reported a strong focus during the coming year on business intelligence, digital transformation and talent development.
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These businesses further indicated that, unlike 2019’s push to expand to new locations and penetrate new markets, 2020 will see companies investing to improve productivity and efficiency. Among the group’s business goals, the search for, development of and retention of employees was a top priority. Leveraging technology also was a key goal, along with increasing sales and improving products and services. the american MOLD BUILDER | Issue 1 2020
The American Mold Builder talked with three AMBA members to get perspectives on their current situations, and the opportunities and challenges they see arising in 2020. Jonathan Buss, president of Buss Precision Mold Inc., in Clackamas, Oregon, shared his view based on experience running a design and manufacture firm that creates plastic injection molds for the medical, scientific, industrial, ITAR military and irrigation sectors. Donna Pursell, chief executive officer of Prestige Mold Inc., Rancho Cucamonga, California, weighed in to share her thoughts as the leader of both a moldmaking facility and an injection molding facility that primarily serve the medical industry and the technical field. And Darrin Schmitt, president of Prodigy Mold & Tool in Haubstadt, Indiana, gave us his thoughts as a supplier of plastic injection molds and tooling for medical, motion control (gears, worms), safety products, automotive and consumer goods. THE OVERVIEW The AMBA members echoed the optimism reported by CNN and Business Wire. For Buss Precision Mold’s Jonathan Buss, business is good. “Last year was one of our two best years since 1988 when we started in business,” said Buss. “Plans are being made for expansion and upgrading of equipment.” Donna Pursell reported similar feelings. “Last year was another record year for us,” she said. “This year has started off very strong, and we have seen a big uptick in our quoting activity.” Prodigy Mold’s Darrin Schmitt’s take was a little more tempered. “I’m pleased with the progress our company is making, but it’s not easy,” said Schmidt. “Training a younger-generation workforce and
