TECNOCOM, Telecomunicaciones y Energía, S.A.Pozuelo de Alarcón, Spain

Imports Increase - US imports of pumps and pumping equipment and motors and generators rose in the first five months of 2008 compared to the same period in 2007. Imports of pumps and pumping equipment increased nearly 21 percent, with strong growth in Norway, the UK, Italy, Sweden, and Mexico. Motor and generator imports saw a modest 4.3 percent rise, led by Denmark, which climbed more than 200 percent. Imports of air and gas compressors fell 1.6 percent.

Durable Goods Production Drops - Industrial production of durable consumer goods, a demand driver for motors, generators, pumps, and compressors, dropped 7.1 percent in June 2008 compared to a year earlier. Production of auto products decreased 9.6 percent, while household appliances fell 7.9 percent. A sluggish US economy is causing many to postpone large purchases until signs of a recovery.

Prices Rise on Higher Materials Costs - Higher prices for raw materials are causing makers of motors, generators, pumps, and compressors to raise prices. Producer prices for pumps, compressors, and equipment rose 5 percent in June 2008 compared to a year earlier; motor, generator, and motor generator set prices increased 4.3 percent. These price increases aren't, however, keeping pace with the increased cost of raw materials. Producer prices for iron ore grew nearly 13 percent, and 7.3 percent for copper ore. The gap between price increases for end-products and raw materials may suggest lower profit margins for makers of motors, generators, pumps, and compressors.