2023 Forecast (CONT’D FROM PAGE 1)
AIR CONVEYING CORPORATION is a recognized leader in the industry of Pneumatic Conveying Systems and has been in business since 1968. As an equipment manufacturer rather than simply a sales organization, we have complete control over the quality of material and products which make up your proposed system. Our equipment is found in Printing, Folding Carton and Corrugated plants throughout the country and the world.
All of the above conditions should have a depressing effect on corporate profits, projected by Moody’s Analytics to increase at a 5.2 percent clip in 2023. That represents a decline from the 7.9 percent figure anticipated for 2022. Both estimates are much lower than the 25 percent in- crease of 2021. Strong Employment Reports from the field reflect early glimmers of a less ro- bust business environment. “In the first half of 2022 many of our members were still experiencing high demand,” said Tom Palisin, Executive Director of The Manufacturers’ Association, a York, Pennsylvania based regional organi- zation with more than 390 member companies ( mascpa. org ). “But as the year progressed there was a significant slowdown caused by the labor shortage, inflationary is- sues, and global events.” With its diverse membership in food processing, de- fense, fabrication, and machinery building, Palisin’s asso- ciation is something of a proxy for all American industry. The good news is that a strong employment environment at the association’s members—as well as at companies elsewhere in the nation—is helping alleviate the negative
AIR CONVEYING CORPORATION PH: 901-454-5016 FAX: 901-324-7979 e-mail: sales@accfilter.com • www.accfilter.com
impact of the economy’s headwinds. Moody’s Analytics expects a continuation of that favorable condition, fore- casting an unemployment rate of 4.1 percent by the end of 2023. That’s not much higher than the 3.7 percent rate of late 2022. (Many economists peg an unemployment rate of between 3.5 percent and 4.5 percent as the “sweet spot” that balances the risks of wage escalation and eco- nomic recession). On the downside, low unemployment usually increas- es business costs by forcing employers to boost wages to attract scarce workers. Today is no exception. “Our orga- nization surveys members annually on their baseline entry level hourly wage figure,” said Palisin. “Increases typically run around 2.5 percent to three percent, but the figure was eight percent in 2022.” While Moody’s Analytics forecasts a continuation of labor cost increases, they should mod- erate to 3.5 percent in 2023, down from their current five CONTINUED ON PAGE 26
24 October 31, 2022
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