April 2020 Association Watch

NFPA’s Global Market Report Update

NFPA’s Global Market Reports and Forecasts are a collection of monthly and quarterly global market reports that will allow readers to investigate every angle of the global marketplace. Prepared by Oxford Economics, these reports are an exclusive benefit for all NFPA members. Non-members are encouraged to join NFPAto access the full reports. Highlights are below.

Global highlights

• The rapid spread of the coronavirus, and the associated isolation policies implemented to contain the outbreak, has led to a significant disruption in economic activity. Services activity has seen the brunt of the impact, but manufacturing has also been hit.

• Global manufacturing output is expected to remain weak in Q2 before a swift rebound is seen in the second half of this year as the spread of the virus slows and isolation restrictions are eased, leading to the release of pent-up demand as business confidence increases.

• The oil market is still reeling from a severe demand and supply shock. For now, we assume that oil prices remain low enough for long enough to force significant cutbacks in U.S. production.

U.S. highlights

• Industrial production (manufacturing, extraction, and utilities) is forecast to lag economic growth in 2020, falling by 2.3%, picking up to 5.2% growth in 2021.

• Manufacturing output is expected to contract 2.7% in 2020, driven by a decline in the motor vehicles and parts sector. In 2021. Manufacturing output is forecast at 6.1% growth, again driven by growth in the motor vehicles & parts sector.

• Extraction output is expected to fall 1% in 2020, driven by a decline in the non-fuel extraction activities sector. Next year, extraction output is forecast at 1.1%, driven by the oil and natural gas extraction sector. Construction output is expected to increase by 0.5% in 2020 and 3.6% in 2021.

• The service sector is expected to expand 0.2% in 2020, driven by growth in the healthcare and social work sector. In 2021, service sector output growth is forecast at 3.9%, driven by growth in the other business services sector.

• The value of industrial production in 2019 was US$3,055.6bn at 2015 prices. Within this, the largest sectors were utilities (US$322.2bn), food (US$279.4bn) and chemicals excluding pharmaceuticals (US$231.7bn).

• Over the next decade industrial production is projected to remain broadly stable as a share of GDP, and fall as a share of global output, as growth in developed economies is forecast to lag that of the emerging markets.

• The fastest growing industrial sectors over the next decade are expected to be high-tech goods, pharmaceuticals and other transport equipment. The slowest growing sectors are expected to be wearing apparel and furs, leather goods and textiles.

NFPA | nfpa.com

NAHAD, FPDA staying connected digitally

Seven12 Management is a professional management firm that specializes in helping associations like NAHAD and FPDA run their organizations. Programs often includein-person meetings and events but recently, the global pandemic has also brought digital services to the forefront.

With associations’ need to stay connected to members from a distance, webinars now look to be more popular than ever. Seven12 Management has been providing these services for a while, and it looks like interest is only going to increase in the near future.

For example, NAHAD’s recent webinar, Take Advantage of Federal Resources to Help Your Business, covered new CARES Act requirements for employers. The webinar helped show companies how to handle paid sick and family leave, opportunities for federal forgivable loans, and changes to help with cash flow as the economy moves into a temporary slowdown.

Additionally, programs like FPDA University offer two ways to train employees —Assessment Testing and Technical Training which cover specific industry content for hydraulic, pneumatic, electromechanical, automation or sales.

Both organizations are providing COVID-19 resources as well. Visit nahad. org and fpda.org for more details on both organizations’ many offerings.

IFPS offers update on available programs

With social distancing measures and stay at home orders keeping everyone in place, IFPS Executive Director Donna Pollander suggests that now might be a great opportunity to hit the books. “By now, we should all be very aware to socially distance ourselves from others. To ‘embrace thisnew-norm,’ the IFPS is launching a numberof new initiatives for industry professionals,”Pollander said. “This could be a perfect time to start preparing for a certification test or gathering recertification professional development points.”

The following are some of the resources IFPS is making available.

New – Free Online Certification Study Groups – Every Tuesday and Thursday, an IFPS Accredited Instructor will lead a one-hour, free, online study group in the Hydraulic Specialist and Pneumatic Specialist Certification Study Manuals. You’ll need a study manual (print or pdf) to participate properly. A list of many of these programs can be found on page 28.

Members may download study manuals free on the IFPS website.

Non-members may purchase a study manual flash drive (or a print copy) or become an IFPS Member and download a free copy.

You can also register for a Specialist Certification Test with a “to be determined” test date and receive a free downloadable study manual.

Certifications expiring in 2020? – The IFPS is granting all recertifications a six-month graced period.

Upcoming Web seminars – The IFPS is waiving the registration fee for all upcoming Web seminars. This could be a perfect time to get those recertification points you’ll need when it’s time for you to recertify. See page28 for more details.

Certification test candidates – Pollander also stated that she has notified upcoming certification test candidates with instructions on how to reschedule their tests. The IFPS will waive all reschedule fees until December 31.

IFPS | ifps.org

Equipment manufacturers call for national manufacturing strategy

The Association of Equipment Manufacturers (AEM) is calling on the federal government to develop and implement a comprehensive national strategy for manufacturing to strengthen the economy, create new jobs and opportunities, and ensure the United States is the best place in the world for equipment manufacturers to innovate, manufacture, and do business.

To confront both the short-term and the long-term challenges facing the equipment manufacturing industry, AEM is urging the U.S. Congress and the Trump administration to develop and implement a national strategy to revitalize America’s manufacturing sector and ensure that the country remains the global manufacturing superpower. Specifically, AEM is urging the federal government to consider the following:

• The creation of a national institute that would serve as a hub for all federal manufacturing programs in the executive branch and coordinate federal manufacturing policy across agencies;

• The establishment of a Chief Manufacturing Officer reporting directly to the President of the United States and responsible for developing and carrying out the national manufacturing strategy.

• The formation of a National Manufacturing Council to provide non-partisan advice to the President on how to strengthen the manufacturing sector and ensure the future competitiveness of U.S. manufacturing in the global economy.

AEM | aem.org