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Demand for Industrial Controls Weakens
Aug 17, 2009
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Shipments of industrial control equipment contracted again during 2Q 2009, as NEMA’s Primary Industrial Controls Index fell 6.5% versus the first three months of this year. Although NEMA said that this represents a much slower rate of decline than the first quarter’s 23% drop, NEMA said that shipments have declined nearly 40% from their cyclical peak and are at their lowest level in 18 years. On a year-over-year basis, the index posted its second consecutive record drop as it shed 35.4% versus 2Q 2008. The Primary Industrial Controls and Adjustable Speed Drives Index, a broader measure of demand for industrial controls, registered a 4.9% decline compared to the first three months of 2009, while shrinking more than one third versus the same period a year ago.

NEMA added that replacement demand for industrial controls and other similar types of equipment will be weak even once production activity resumes within the United States.

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