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Our index of custom injection molders' machine-hour rates rose 0.6% for the frst half of the year. That's much smaller than the 1.6% increase for the second half of 2013. Responses from 85 plants nationwide indicate that 22% of plants raised their rates, 8% lowered them, and 69% left them unchanged. At 56.4%, custom injection molders' average capacity utiliza- tion in the frst half dropped 1.1 points from the previous six- month period. Still 42% of respondents saw higher utilization, while 19% had lower utilization, and 33% were unchanged. The ratio of higher to lower utilization was the highest since mid-2011. Mold orders were up 5.2%, again the highest increase since the frst half of 2011. Molders were optimistic about near-term business conditions. Over 64% expected improving conditions (down slightly from the previous survey), 22% saw no change ahead, while 11% foresaw worsening conditions (a bit more than previously). Uptick in Hourly Rates in First Half of 2014 Mold orders and optimism are strong, though capacity utilization is slightly lower. a An adjustment factor is used where data did not already include proft and labor. b Relative to highest-cost region (which equals 100); value shown is a weighted average for all size ranges. c Weighted geographically according to Plastics Technology's Manufacturing Census. Tonnage Range $hr <50 50-99 100 -299 300 -499 500 -749 750 -999 1000 -1499 1500 1999 2000 -2999 3000+ Index b Northeast AVG $62.16 $58.03 $65.60 $65.11 $86.99 $125.52 $125.52 $125.52 - - 100 ME, NH, VT, MA, CT, RI, NY, NJ, PA HI 86.00 86.00 101.00 101.00 87.41 130.44 130.44 130.44 - - LO 40.00 37.70 41.23 42.41 86.41 120.59 120.59 120.59 - - Southeast AVG $37.95 $45.73 $48.21 $63.82 $74.72 $82.37 $112.92 $156.27 $245.20 $282.77 78 DE, DC, FL, GA, MD, NC, SC, VA, WV HI 50.00 59.94 72.22 74.69 80.85 83.64 121.28 165.89 264.86 306.68 LO 30.67 33.33 33.33 58.90 69.70 81.10 105.55 146.65 225.53 258.86 North Central AVG $39.43 $40.93 $48.75 $56.33 $76.40 $112.76 $117.15 $165.65 $238.76 $292.50 75 IL, IN, MI, OH, WI, IA, KS, MN, MO, NE, ND, SD HI 77.77 83.33 111.10 111.10 130.00 281.59 153.14 285.77 287.74 334.87 LO 9.42 12.00 12.96 15.00 31.37 53.01 110.00 149.99 199.98 257.75 South Central AVG $35.75 $32.59 $45.49 $54.60 $74.11 $83.49 $111.04 $164.90 $219.43 $283.89 69 AL, KY, MS, TN, AR, LA, OK, TX HI 44.44 55.55 67.92 67.92 94.44 83.64 114.31 174.25 227.76 306.68 LO 20.91 24.00 31.00 44.76 63.00 83.33 107.77 155.54 211.09 261.09 WEST AVG $34.07 $54.24 $59.81 $70.97 $96.99 - - - - - 90 CA, OR, WA, AK, HI, AZ, CO, ID, MT, NV, NM, UT, WY HI 68.00 76.57 89.53 100.13 130.00 - - - - - LO 24.95 24.95 25.79 35.34 72.22 - - - - - National Average c $43.73 $47.18 $54.53 $61.64 $82.21 $109.38 $117.68 $152.18 $236.50 $289.28 Change in Hourly Rates Index In First Half of 2014: +0.6% Custom Injection Molders' Machine-Hour Rates With Operator And Proft Margin Included a (85 Plants) DOLLARS PER HOUR, 2ND QUARTER 2014 Press Tonnage Without Proft Without Operator Without Either <100 13.0% 18.8% 33.4% 100-299 9.1% 13.8% 27.6% 300-499 8.1% 12.4% 24.1% 500-749 6. 3% 10.6% 19.8% 750-999 5.7% 13.6% 19.4% 1000+ 9.0% 13.5% 18.5% Proft & Labor In Hourly Rates Deduct these amounts a from the fgures in the large table below to arrive at rates without proft, operator, or both. a Cumulative national averages over many surveys. Custom Injection Capacity Utilization Capacity Utilization 60% 55% 50% 45% Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q4 2013 Q2 2014 58.5% 50% 57% 56% 59% 56% By Matt Naitove Executive Editor @plastechmag 77 Plastics Technology YO U R B U S I N E S S HOURLY R AT E S SUR V E Y