Capital spending to increase

The Capital Equipment Spending Survey has revealed that 2016 had been a good year for US manufacturing, as there was a continued growth in investment. FCA US announced plans to invest $1.48 billion in its assembly plant in Sterling Heights, MI, to build the next generation Ram 1500 truck. Whi rlpool Corp. started a $40 million expansion project at its dishwasher assembly plant in Findlay, OH. The project will add 86,400 square feet to the facility and create approximately 50 new jobs. Specifically, U.S. assembly plants will spend $3.78 billion on new equipment in 2017, an increase of 8 percent from the $3.5 billion projected to be spent in 2016. On average, manufacturers will spend $273,108 on assembly technology in 2017, and that is lower than the $298,630 average budget for 2016. Lean manufacturing is becoming less important as a reason for capital investment. Only 16 percent of plants will buy equipment next year to implement lean manufacturing. That compares with 18 percent in 2016. Some 72 percent of plants are looking to decrease direct labor costs next year. The biggest markets for inspection technology next year will be computers and electronics, fabricated metal products, transportation equipment, and appliances.