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M A Y 2 0 1 4 | 1 3 BY THE NUMBERS BY THE NUMBERS Steve Kline is the director of market intelligence for Gard- ner Business Media Inc. (Cincinnati, Ohio), the parent company and publisher of H i g h - P e r f o r m a n c e Composites. Kline holds a BS in civil e n g i n e e r i n g f ro m Vanderbilt University and an MBA from the University of Cincinnati. I COMPOSITES BUSINESS INDEX 56.3: BEST SINCE MARCH 2012 n February, the U.S. Composites Busi- ness Index of 53.1 showed indus- try growth for the fourth time in fve months — and at its second fastest rate since May 2012. Improving at a gener- ally accelerating rate since July 2013, the CBI was 6.2 percent higher than it had been one year earlier. New orders grew, reaching their second highest level since February 2012. Production expanded at it second fastest since April 2012. Backlogs increased for the frst time since spring 2012, pointing to greater ca- pacity utilization and capital investment in 2014. Employment continued to grow but at its slowest rate since September 2013. Exports were still mired in contrac- tion at a rate similar to that in 2013. Sup- plier deliveries lengthened again. The rate was slightly slower than in the previ- ous two months, but slightly faster than in the second half of 2013. Material prices increased at a rapidly accelerating rate the frst two months of 2014, and at its third fastest rate in CBI history. Prices received, rising in six of the previous seven months, grew at one of its fastest rates since January 2013, but increased much more slowly than mate- rial prices. Future business expectations soared, reaching their second highest level since the CBI began. Facilities of all sizes grew again in Feb- ruary. The rate, however, was signifcant- ly greater for those with more than 20 employees. Fabricators with 19 or fewer employees recorded very slight growth. Six of the seven U.S. regions registered expansion. The Pacifc region grew fast- est, followed by New England, the South Atlantic, West North Central, Mountain, and East North Central. After expanding in January, the Middle Atlantic was fat. Future capital spending plans were 30.2 percent lower than a year ago. In March the CBI of 56.3 showed indus- try growth for the fourth consecutive time and the ffth time in six months — at the fastest rate since March 2012. Industry improvement had accelerated since July 2013. The Index was 8.7 percent higher than in March 2013 and it was the sev- enth month in a row that it was higher than in the same month the year before. The annual rate of change had grown faster each of the previous two months. New orders had grown for four months straight at a rate increased slightly from February but slower than in January. Pro- duction expanded for the third consecu- tive month, reaching its fastest growth rate in nearly two years. Backlogs had grown at an accelerating rate in the frst three months of 2014, a trend indicat- ing that composites fabricators' capacity utilization and capital spending should increase through the year. Employment had increased for 13 months, and the hir- ing rate picked up sharply in March. Ex- ports grew for the frst time since April 2012. Supplier deliveries lengthened at the fastest rate since April 2012. Material prices increased again in March, but at a noticeably slower rate than in February. Material prices con- tinued to increase, but prices received contracted for the second time in fve months. Falling slightly compared to January and February, future business ex- pectations in March was near its highest levels since the CBI began. The CBI was up sharply for facilities with 20+ employees, and at a rate as high as at any time CBI history. But those with 19 or fewer employees contracted after two "up" months. The Index differential between plants with more and less than 20 employees was roughly 10 points. For the frst time, all seven U.S. regions grew in the same month. The East North Central and Pacifc regions grew fastest. The East North Central had grown fve of the previous six months and the Pacifc grew for the sixth consecutive month. After contracting in February, future capital spending plans increased 16.3 percent compared to March 2013. The annual rate of change in March was higher than in February. THE COMPOSITES BUSINESS INDEX Subindices March February Change Direction Rate Trend New Orders 57.5 57.0 0.5 Growing Faster 4 Production 62.5 58.5 4.0 Growing Faster 3 Backlog 53.1 51.5 1.6 Growing Faster 3 Employment 56.8 51.5 5.3 Growing Faster 13 Exports 51.1 47.3 3.8 Growing From Contracting 1 Supplier Deliveries 56.7 52.6 4.1 Lengthening More 28 Material Prices 64.3 68.4 -4.1 Increasing Less 28 Prices Received 49.3 52.2 -2.9 Decreasing From Increasing 1 Future Business Expectations 76.0 79.0 -3.0 Improving Less 28 Composites Business Index 56.3 53.1 3.2 Growing Faster 4 0514HPC By the Numbers-OK.indd 13 4/22/2014 2:51:30 PM