Manufacturing Forecast (CONT’D FROM PAGE 22)
Board Converting NEWS INTERNET DIRECTORY
Projects that cannot be financed by internal funds will require outside sourcing, and here the environment is favorable, if pricey. Petryk noted that capital is generally available, through both traditional lending sources and non-bank lending institutions, although interest rates are higher than in the past. Dark Clouds All, of course, is not rosy. A number of familiar dark clouds threaten to rain on the economic parade. Among them are rising interest rates, high material and energy costs, uncertain tariff policies, and tapped out lower-in- come consumers. Interest rates are, perhaps, the top-of-mind concern. “Because the Federal Reserve has not achieved its 2 per- cent target inflation rate for more than five years, it is like- ly that monetary policy will tighten in 2027,” said Anirban Basu, Chairman & CEO of Sage Policy Group ( sagepolicy. com ). “That means that borrowing costs will be on the rise, making it likely that fewer company initiatives will be finan- cially viable.” Again, field reports tell a similar story. “The recent in- crease in interest rates by the Federal Reserve will have a pretty significant impact on our members who engage in a lot of short-term borrowing,” said Palisin. “While they have not yet pulled back investments in building and machin- ery, time will tell if that changes. They are likely to become much more disciplined in putting pencil to paper to deter- mine the ROI for investments.” Relief may be in the cards. Oxford Economics expects the Federal Reserve to cut interest rates by 25 basis points in late 2027, after making sustainable progress toward its 2 percent inflation target. Housing Angst High interest rates, of course, make mortgages more expensive and thus dampen the housing industry, a signifi- cant driver of the nation’s economic health and of demand for manufacturers’ goods. For house shoppers, competition for available funds is keeping borrowing rates high. Mortgage rates were clos- ing in on 7 percent toward the end of 2026. “Global de- mand for credit is coming from places like China and the U.S. to support their budget deficits as well as from the pri- vate sector to support the roll out for artificial intelligence,” said Bill Conerly, Principal of his own consulting firm in Lake Oswego, Oregon (conerlyconsulting.com). “Fami- lies shopping for mortgages are competing for loans with companies like SpaceX and Anthropic, as well as the U.S. and Chinese Treasuries, while the global supply of savings has not increased much.” Additional downward pressure on sales is coming from the increasing price tags on available homes. “We are looking for median prices of existing homes to increase 3.7 percent in 2027 after increasing 1.7 percent in 2026 and 1.9 percent in 2025,” said Yaros. CONTINUED ON PAGE 26
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Air Conveying Corporation is a leader in the industry of Pneumatic Conveying Systems and has been in business since 1968. As an equipment manufacturer rather than sim- ply a sales organization, we have complete control over the quality of material and products which make up your pro- posed system. Our equipment is found in printing, folding carton and corrugated plants throughout the world. We've been designing, manufacturing and engineering pneumatic conveying systems since 1984. We partner with our customers to ensure they operate efficiently and guar- antee our systems meet or exceed their specifications. ASDI specializes in full pull-through systems trim separators, and NFPA compliant systems with full electronic controls. AMTECH SOFTWARE www.amtechsoftware.com AIR SYSTEMS DESIGN, INC. www.airsystemsdesign.com Amtech offers the industry’s most innovative and com- prehensive corrugated and packaging ERP, integrated scheduling software, and engineered automation technol- ogy. For over 30 years, Amtech has kept our customers competitive in an ever-changing economy with customer digital storefronts and workflows, business intelligence, automated scheduling for corrugators, converting and shipping, proactive roll stock and inventory management. APEX INTERNATIONAL www.apexinternational.com World’s largest Anilox and Glue & Metering roll manufac- turer, providing the widest selection of corrugated engrav- ings and complementary services. Anilox engraving options available from our North American manufacturing facility include elongated 75°, 60°, 45°, plus Apex’s patented GTT technology. Glue rolls are produced with Hardened Stain- less Steel and a max TIR of 10 µ for Single, Double Facers.
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ARC INTERNATIONAL www.ARCInternational.com
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24 November 9, 2026
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