Watching production numbers after the devastating hurricanes blew through America is a full time hobby for people in all sorts of industries. Without a doubt, supply chains for fuel and chemicals were greatly affected both in terms of pricing and in the way that demand has risen for scarce resources. However, looking at the past can give us important insight into the future, and history suggests that we are about to see a big boost.
First, there are no doubts the hurricanes put a dent in the economy. Factory production nationally has been down since June and so has capacity utilization and total industrial production. The Federal Reserve data suggests that without the weather incidents, industrial production would have risen at least 0.5%. Instead it fell by 1.5%.
In the past after a hurricane event or severe weather damage, the economic activity that was initially subdued received a boost from rebuilding in later months. While some industries get an immediate boost, such as construction and supplies involved in rebuilding, there are other factors at play as well. Household demand and business investment historically jumps. The data now bears that out as well. Since September, mining and auto production, utility output and capacity utilization have already begun to rapidly increase. Oil and gas drilling is still lagging behind, but that is to be expected.
So what does it all mean for you?
It means that now is a great time to expand or to reevaluate what would make your business the most productive. Looking at the results of a national disaster should make all of us reflect on our factor floors and optimize what we can. Komax innovative designs can help streamline your procedures by introducing high quality static mixers directly in your pipelines to create a quick, substantially cheaper energy input to mix your product thoroughly and consistently. Our steam heaters or desuperheaters can make the process of dealing with wastewater or mixing additives into a preexisting stream fast, efficient and with much less downtime. Why not find out how Komax can help you come out faster and stronger as a manufacturing lean machine?