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OEM and MRO Demand Are Rising Together. The Next Gearbox Constraint May Not Be a Parts Shortage

Industrial gearbox and motor drivetrain operating as maintenance professionals plan repairs and spare parts

A series of industrial earnings reports released over the past several weeks—and capped by Parker Hannifin’s results on August 6—suggests that a potentially important shift is occurring inside the industrial equipment market. Demand is not strengthening only on the new-equipment side. Replacement parts, aftermarket services and MRO purchasing are strengthening at the same time. Parker … Read more

Machinery Backlogs Rose in June—But the Data Do Not Prove a Gearbox Shortage

A heavy industrial gearbox sits on a workshop floor, its metallic casing showing some wear and residue, illustrating a piece of machinery possibly in a state of backlog or waiting for a gearbox.

U.S. factory orders declined in June, but the headline masks a materially different pattern inside the machinery sector. The U.S. Census Bureau reported on August 4 that total manufactured-goods orders fell 0.3 percent to $656.5 billion. Machinery new orders, however, increased 0.3 percent to $43.9 billion, machinery shipments rose 1.8 percent to $42.2 billion, and … Read more