Factory Orders

And finance Allah shmoop what our producers durable equipment and

structures It sounds like the incredibly literal minded name for

a farm equipment and barn construction company run by a

guy named something like Ralph Producer But instead no producers

Durable equipment and structures refers to a highly specific type

of business spending It's probably best to break it down

step by step So yeah that's what we'll do first

Durable equipment While manufacturing products often get sorted into two

main categories durable and nondurable durable goods or those Mento

last a long time right The usual definition calls for

an item Mento last at least three years So for

consumers were talking things like cars and washing machines and

electric salad spinners and senators Nondurable goods arm or disposable

Think products like paper cups and toilet paper and odor

neutralizing shoe inserts You know stuff like that Durable equipment

equipment meant to last at least three years So now

the producers part Some manufactured goods are made for regular

people to buy for use in their day to day

lives Well that stuff gets the title Consumer goods A

different category applies to different items made for other companies

to buy for use as part of their operations It's

called producer goods Yeah that's the category A blender that

can make five margaritas servings Consumer Good A giant room

sized blending that that can make five thousand gallons of

margaritas Producer Good So yeah producers Durable equipment is equipment

meant to last a very long time and to produce

on a large scale It's not for consumers It's for

other producers at the Oder Neutralizing Shoe Insert factory while

we're talking about the big stamping machine that cuts the

phony material into you know foot shapes or the giant

sprayer that sports anti stink anti stink Jews technically onto

the foot shaped foamy things those are examples of producers

Durable equipment Now the structures Sparta will structures have to

do with buildings shockingly like actual structures places people work

or which get built as part of a factory campus

right the buildings the offices the gazebos out by the

tennis courts where the string quartet plays well That last

one is more for the Googles and Facebook's of the

world But well it still counts So the producers durable

equipment and structures refers to business spending on long lasting

manufacturing equipment or on the physical buildings used by the

company well basically attracts large capital expenditures by Cos It's

the amount businesses spend on their big ticket equipment or

on their physical structures The large items in which a

company has to invest in order to you know do

what they do While Economist track this number is a

sign of the health of the manufacturing industry If companies

are willing to make these big purchases it's generally a

good sign of what's to come with the economy right

Thes purchases often require borrowing Money Cos also need confidence

that they'll get a year's worth of use out of

the equipment and or structures and that they're optimistic about

their futures So the fact that the firms are making

the purchases bodes well for the industry as a whole

and usually where the industry goes so the economy goes

right On the other hand if companies are reluctant to

make these purchases it's a bad sign for the industry

and or the economy It shows a lack of confidence

when the figures for producers durable equipment instructors go down

while the economy likely is going to be in trouble

In the future So the shoe insert company decides to

ditch its aging anti stink juice sprayer and instead borrow

money to purchase the brand new Internet enabled A I

designed texting spurt X nine thousand The move shows up

as part of the national statistics on producers durable equipment

and Structures Yeah good thing Good sign for the economy

Businesses are showing confidence than in the future Or it

could just indicate that the odor neutralizing company sees ongoing

demand for its specific product Because feet are well you

know eternally on Iran's in there you just spray it 00:03:59.32 --> [endTime] Oh yeah