The UAW has released the details of the proposed 4-year agreement with Fiat Chrysler. Employee reaction to the tentative agreement was mixed at local unions. There were tough questions and criticisms to respond to at the informational meetings held by the leaders of the bargaining committee. UAW Vice President Norwood Jewell, who was instrumental in […]
In August, vehicle sales reached a new recovery high of 17.8 million units on a seasonally adjusted annualized basis. This was the highest pace since July 2005, when incentives caused sales to surge. The August sales figure was particularly driven by light trucks which increased from 9.7 to 10.1 million units annualized. Autos fell from […]
Details about the UAW tentative agreement with Fiat Chrysler are beginning to come out thanks to a report published Wednesday by the Detroit Free Press. According to their information and comments during the UAW/FCA press conference, the Tier gap will be narrowed and eventually go away. Tier 2 entry workers will start at $17 per […]
Total housing starts in August were at an annual rate of 1,126,000 which was the third best since October 2007. In August, the three month moving average (3MMA) was 1,166,000 which was the best result since December 2007. Total starts are still on track to reach 1.6 million units annualized by the end of 2018 […]
UAW President Dennis Williams and FCA US LLC CEO Sergio Marchionne held a news conference Tuesday evening at the UAW-Chrysler NTC Building in Detroit to announce that they have reached a tentative agreement. No details of the agreement were given but Williams and Marchionne alluded to doing away with the two-tier system over time and […]
Construction firms are finding it increasingly difficult to find qualified craft workers, according to a new report by the Associated General Contractors of America. More than 2 million construction workers were laid off in the 2008 recession with many of those never returning to the industry. In a survey of 1,358 construction firms, 86 percent […]
Planning for nonresidential construction increased in August according to the Dodge Momentum Index by Dodge Data & Analytics. The Index rose 2.8 percent from July to register 128.3. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. July data was released on Tuesday September 1st. Construction Put in Place is based on spending work as it occurs, estimated for a given month from a sample of projects. In […]
United Auto Workers negotiations are nearing the contract expiration date of Sept. 14. The biggest issue this year is closing the gap in the two-tier wage structure at Detroit’s Big Three automakers. The two-tier system was established in 2007 to help auto manufacturers remain competitive with foreign counterparts. Tier 1, or legacy workers earn about […]
Following the exceptional rate of vehicle sales in the US in May the June rate fell from 17.8 million annualized to 17.2 million then bounced back to 17.5 million in July. This was the second best month of the year. Light trucks continued to pull ahead of automobiles. In July LT sales which includes crossovers […]
Existing home sales increased for the third consecutive month in July. The seasonally adjusted annual rate for July was at 5.59 million, up 2 percent from a downwardly revised 5.48 million in June. Sales were at their highest pace since February 2007, said the National Association of Realtors, but first time buyer sales dropped to […]
Sales of new single-family houses in June 2015 were at a seasonally adjusted annual rate of 482,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 6.8 percent below the revised May rate of 517,000, but is 18.1 percent above the June 2014 estimate […]
Below is the latest release issued by the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) regarding residential and commercial heating and cooling equipment shipments through June 2015. You may read the press release on their website here. Residential Storage Water Heaters U.S. shipments of residential gas storage water heaters for June 2015 increased 17.9 percent, […]
Building planning increased in July according to the Dodge Momentum Index published by Dodge Data & Analytics. The Index, which is a monthly measure of the initial report for nonresidential building projects in planning, rose 5.4 percent to a reading of 125.3 from 118.9 in June. After see-sawing in the first half of the year, […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. June data was released on Monday August 2nd. Construction Put in Place is based on spending work as it occurs, estimated for a given month from a sample of projects. In […]
US automotive sales had another stellar month in July beating analyst expectations as consumers continued to buy trucks and SUVs. Sales for July rose 5.3 percent year over year to 1.51 million vehicles. The seasonally adjusted annual rate (SAAR) for July light vehicle sales rose to 17.5 million beating Bloomberg’s expectation of 17.2 million WardsAuto’s […]
The all-aluminum Ford F-150 is going to cost you more to repair—so says the Insurance Institute for Highway Safety (IIHS). IIHS put the F-150 crew cab and the F-150 extended cab through a series of five crash tests. The crew cab model passed all of them with flying colors giving it the Top Safety Pick […]
The S&P Case Shiller Home Price Indices for May showed home prices continue to rise across the U.S. The 10 city composite posted a 4.7 percent gain year over year while the 20 City Composite gained 4.9 percent. The S&P/Case-Shiller U.S. National Home Price Index, covering all nine U.S. census divisions, recorded a 4.4 percent […]
Following the exceptional rate of vehicle sales in the US in May the June rate fell from 17.8 million annualized to 17.2 million which is a more sustainable rate. The June pace was still higher than the 16.9 million units average of the past 12 months. Demand is being supported by easier credit terms, sustained […]
We had begun to think that our projection for total housing starts to reach 1.6 million units annualized by the end of 2018 was optimistic but the June report put that projection back on track. Total starts in June were at an annual rate of 1,174,000 with a three month moving average (3MMA) of 1,144,000. […]
Contract talks opened July 13 between the United Auto Workers union and the big three Detroit automakers. As GM, Ford, and Fiat Chrysler enter negotiations, at issue for the companies is labor costs. GM and Ford are looking to cut labor cost that average $8 to $9 per hour higher than at Honda and Toyota. […]
Below is the latest release issued by the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) regarding residential and commercial heating and cooling equipment shipments through May 2015. You may read the press release on their website here. Residential Storage Water Heaters U.S. shipments of residential gas storage water heaters for May 2015 increased 10.2 percent, […]
Chevy is taking on the aluminum Ford F-150 with a series of ads sure to tickle consumers and annoy Ford marketers. The new ads for the Chevy Silverado poke fun at the F-150 while lauding the benefits of steel construction. The ads which are currently running in social media, point out the disadvantages of aluminum. […]
US light vehicle sales in June reached a seasonally adjusted annual rate of 17.1 million, the first time consecutive months were above 17 million since June and July of 2005. The SAAR was slightly below expectations and came in at the bottom of the consensus range (17.1 M to 17.8 M) posted by Bloomberg. Actual […]
Each month the Commerce Department issues its Construction Put In Place (CPIP) data, usually on the first working day covering activity two months earlier. May data was released on Wednesday July 1st and historical data was revised back to January 2013. Construction Put in Place is based on spending work as it occurs, estimated for […]
General Motors wants to bring electric cars to the masses not just the “elite.” GM CEO Mary Barra, in an interview with LinkedIn’s executive editor Daniel Roth, said the all-electric Chevy Bolt (with a “B”) will be offered to the public at $30,000 compared to Tesla’s $75,000 vehicle. Electrification is for everyone, “not just the […]
New home sales were at a seven year high in May, climbing 2.2 percent from April to an a seasonally adjusted annual rate of 546,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. Sales outpaced the Bloomberg forecast of 523,000 and were 19.5 percent above […]
Light vehicle sales in the US skyrocketed in May to a seasonally adjusted annualized rate of 17.8 million units. This is the strongest pace in almost 10 years. Auto sales were 7.4 million in April and rose to 8.1 million in May. Light trucks rose from 9.1 to 9.7 million. Imports in May were 3.8 […]
The surprisingly strong housing starts result for April was not repeated in May but the three month moving average did increase. Total starts were 1,036,000 down from 1,165,000 in April. This is an example of why we always focus on three month moving averages (3MMA) at SMU and don’t get too excited or depressed by […]
Below is the latest release issued by the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) regarding residential and commercial heating and cooling equipment shipments through April 2015. You may read the press release on their website here. Residential Storage Water Heaters U.S. shipments of residential gas storage water heaters for April 2015 decreased 8.8 percent, […]