Market Update: Chinese production grows by $2B YOY, production down 3.4 percent in EU

Sept. 19, 2016

Industrial companies in China achieved an 11 percent growth rate in July with more than a double MOM gain, and 30 of 41 surveyed industries saw YOY growth in these first seven months.

China’s industrial production sector experiences substantial 2016 gains

Industrial companies in China achieved an 11 percent growth rate in July with more than a double MOM gain, which saw only 5.1 percent MOM growth. The gain is contributed primarily to a boost in Ferrous metal processing and production, which has risen 14.83B yuan ($2.2 billion) YOY. Thirty of 41 surveyed industries saw YOY growth in these first seven months.

Industrial facilities increasingly seek LEED certification

More than 1,775 industrial facilities are now certified by the Leadership in the Energy & Envirionmental Design (LEED) program, according to a U.S. Green Building Council report, and locations are becoming LEED certified at a quicker pace. That number is expected to rise by more than 1,000 over the next few years. Currently, the space occupied by green facilities comprises more than 500 million square feet.

Production rates down 3.4 percent in EU

The European Union experienced a 3.4 percent decrease in industrial production year over year (YOY) in July according to the Institute of Statistics. The extractive industry fell 13.7 percent, and the processing industry fell 2.9 percent. Meanwhile production of electricity, gas, heat and air conditioning saw a 5.9 percent downturn.  Despite this, the overall adjusted percentages month over month (MOM) grew by 0.7 percent, with processing and extractive industries growing by roughly 1 percent each and electric, gas, heat and air conditioning dropping by 2.5 percent.

Brazil experiences slight production increase despite low exceptions

Industrial production in Brazil rose by 0.1 percent MOM in July despite predictions of a 0.2 percent decline. Growth was partially contributed to an increase in the food processing sector after two months of downturn.

This marks the country’s fifth growth month in a row and a 6.6 percent YOY growth for July. However, industrial output for the first seven months as a whole is down for the same time period in 2015.

Vietnam sees slower YOY growth in 2016

Industrial production growth in Vietnam slowed in 2016 after seeing only a 6.9 percent increase in production through August. During the same period in 2015, the country experienced a 9.8 percent growth.

Production decreases in the mining sector contributed most to the decline in growth. Other sectors continue to grow: 9.7 percent growth is expected in the manufacturing and processing sector; 11.8 percent growth is expected in the electricity production and distribution sector; and 6.8 percent growth is expected in the water supply and wastewater treatment sector.

Canadian manufacturing sales rise slowly

Statistics Canada found slow growth in the Canadian manufacturing exports sector with a .01 percent gain MOM in July. Royal Bank of Canada reported growth was expected to reach at least 1 percent in the month. June saw only a slightly higher increase at .08 percent. However, these slight gains marked the first time this year that the sector saw growth in two consecutive months.

Data also showed a 2.6 percent YOY decline in the sector, and the MOM growth is a stronger 4.1 percent when energy products are excluded.  Food processing showed one of the larger increases in July with a 1.9 percent rise.

Australian titanium dioxide market to reach $87M in 2016

A new report from Persistence Market Research found the titanium dioxide market in Australia should reach an $87 million value in 2016. The report also forecasts a compound annual growth rate of 4 percent through 2024.

Growth in the industry is attributed to rising demand by the automotive, housing and personal care sectors. In India and China especially, where consumer preferences are shifting, growth in the paints and coatings industry is expected to contribute to titanium dioxide demand growth. Detracting from industry growth are recent global economic slowdowns and substitution of titanium dioxide with silica.

SEI selected to manage USDA ‘biobased’ program

The United States Department of Agriculture (USDA) renewed its five-year contract with the Safety Equipment Institute (SEI) to manage the certification program that supports "biobased" product labeling. The program encourages environmentally conscious purchasing while helping manufacturers meet growing demand for products made and packaged using renewable materials. SEI, which is a subsidiary of ASTM International, uses ASTM International testing method D6866 in accredited laboratories to determine biobased percentages for certification.

For more on certification or to have a product or packaging certified for the biobased program, visit

Manufacturing industry struggles to develop in Indonesian

Efforts to grow the Indonesian manufacturing industry amidst increased demand for value-added products worldwide are still struggling to find a foothold. Low labor productivity and high logistics cost, resulting from poor-quality infrastructure and heavy business regulations, continue to hold back growth strategies, and many manufactures have moved to nearby countries with lower logistics costs. Another major deterrent for investors is the country’s value-added tax, which imposes up to 10 percent extra tax on local products while imported products were charged zero percent.

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