As the leading source of fluid power market information in the U.S., NFPA offers a variety of industry analysis and hard data to assist members in planning their next move. While offering such a range of resources can be extremely helpful to most members, for some, it can create the daunting task of pulling together graphs, charts, and data to better explain economic conditions, industry activity, and company performance. In this series of articles, I hope to share some examples of combining NFPA resources to create more effective analysis.
There are many methods of evaluating customer market performance, and NFPA offers a variety of resources to help:
- Customer Market File – Determine market size and trends with customer market shipments and orders data.
- NFPA Forecast Report: U.S. Customer Markets – Analyze projections for fluid power’s most popular customer markets.
- Customer Market Survey – Investigate U.S. hydraulic and pneumatic industry sales by customer market.
- Fluid Power Regional Demand Estimates – Explore geographic demand of fluid power products to customer market by state.
- Global Market Reports & Forecasts – Get detailed analysis and demand forecasts of popular customer markets by country and region.
- Trends in Capacity Utilization – Learn about capacity utilization and total capacity trends in popular customer markets.
Basic evaluation of customer market performance typically involves several years of historical shipments data analysis and the current year’s outlook for your company’s customer markets.
Using NFPA’s Customer Market File, we examine the percent change in the last five years of shipments data for popular fluid power customer markets. This graph quickly shows the strong performance by both the auto & light trucks and wood products. It also makes it hard to ignore farm machinery and mining machinery’s poor performance over the last five years.
Using NFPA’s Forecast Report: U.S. Customer Markets, we examine the current year’s outlook for the same popular fluid power customer markets. While most of these customer markets appear to be on the decline in 2019, mining machinery looks to perform rather well this year. This market’s poor performance in the past may be a major driver in the growth it is expected to experience in 2019 and reinforces the importance of examining the historical data along with outlook data when evaluating customer markets.
Combining 5-year growth totals and current year outlooks, as well as adding market size data for each customer market (represented by bubble size), we can create a single visual representation of customer market performance evaluation as shown above. As customer markets move closer to the upper right-hand corner, performance improves. As customer markets move closer to the lower left-hand corner, performance declines. Not only does this combined resource visual allow us to reach all the same conclusions we made earlier, but it also avoids any misconceptions that can be created by only using one resource (such as in the above example with mining machinery).
NFPA’s timely and accurate industry statistics allow our members to understand trends and anticipate change with a variety of industry reports, forecasts, and data sources for fluid power products, customer markets, and economic indicators.
Questions and inquiries about NFPA’s Market Information Resources can be directed to Eric Armstrong at email@example.com or (414) 778-3372.