The worldwide market for Distributed Control Systems (DCS) including hardware, software, and services is expected to grow from $9.1 billion in 2002 to be over $10.3 billion in 2007. The market declined between 2001 and 2002 by over 2%. Growth through 2007 will improve so that the average annual rate for the forecast period is 2.5%.
Meanwhile, the overall economy grew for the 20th consecutive month, according to the Institute for Supply Management (ISM).
However, the ISM said improved showing of the New Orders, Production, and New Export Orders Indexes is encouraging because it appears that manufacturing is positioned for a recovery in the second half.
ISM's Backlog of Orders Index indicates that order backlogs were unchanged in June. Manufacturing Employment continued to decline in June as the index remained below the breakeven point of 50 percent for the 33rd consecutive month.
ISM's Prices Index indicates that manufacturers experienced higher prices for the 16th consecutive month. New Export Orders grew in June for the 18th consecutive month. June's Imports Index grew for the eighth consecutive month.
Comments from purchasing and supply managers are still mixed. Companies' capital equipment purchases appear to be lagging, while the metal fabricators see signs of improvement. Strength in the housing sector was mentioned by a number of respondents. The major concern for manufacturers this month is the cost of natural gas.