Unemployment aid requests fall to near 3-year low

WASHINGTON – The number of people requesting unemployment benefits last week plunged to a nearly three-year low, bolstering the likelihood that companies will increase the pace of hiring this year.Applications for unemployment benefits fell by 20,000 to a seasonally adjusted 368,000, the Labor Department said Thursday. It was the third decline in the past four weeks. Applications are now at their lowest level since May 2008.

The four-week average for applications, a less volatile figure, fell last week to 388,500. That’s the lowest level since July 2008, the last time the four-week average was below 400,000.

Applications that remain consistently below 375,000 tend to signal steady declines in the unemployment rate. Unemployment benefit applications peaked during the recession at 651,000.

Analysts are predicting strong job gains in the March employment report, which the government will release Friday. Brightening the outlook for more aggressive hiring, the service sector expanded at the fastest pace in more than five years in February, and the manufacturing sector grew last month at the fastest pace in nearly seven years. And retailers are reporting solid gains for February after the best holiday shopping season since 2006.

Stocks surged after the economic data was released. The Dow Jones industrial average rose by more than 180 points in morning trading.

“Often at this stage of the recovery, when these signals are in place, we see a surge in hiring,” said John Ryding, an economist with RDQ Economics.

Economists estimate that employers added a net 175,000 jobs in February. That would mark an improvement from an anemic 36,000 jobs in January when severe winter weather held back hiring.

At the same time, economists think the unemployment rate edged up to 9.1 percent in February. Unemployment rates often tick up when an improving economy causes out-of-work people who haven’t been looking for jobs to start. People out of work aren’t counted as unemployed unless they’re job hunting. During a weak economy, some people become discouraged and stop looking.

Separately, retailers reported revenue gains for February, extending the spending momentum seen during the holiday season. Limited Brands Inc. and Macy’s Inc. reported gains that beat Wall Street expectations, while Target Corp. announced an increase slightly below analysts’ projections. The figures are based on revenue at stores open at least a year and are considered a sign of a retailer’s health.

The service sector, which employs about 90 percent of U.S. workers, grew in February at the fastest pace in more than five years, according to the Institute for Supply Management. It marked the sixth straight monthly increase. The sector covers a broad range of industries including retail, health care and financial services.

Another report Thursday confirmed that workers boosted their productivity in the final three months of 2010 at the fastest pace in nine months.

The downward trend in applications for unemployment benefits suggests that companies are easing the pace of layoffs now that the economy is strengthening consistently. During the recession, companies slashed work forces, cut or froze workers’ pay and took other aggressive steps to reduce costs.

Stronger job creation is needed to steadily reduce unemployment. Economists say it would take up to 300,000 new jobs a month to reduce the unemployment rate significantly.

Thursday’s report also showed the number of people receiving unemployment benefits dropped to 3.77 million, the lowest level since mid-October 2008. That doesn’t include millions of people enrolled in emergency unemployment benefit programs funded by the federal government.

An additional 4.5 million unemployed workers received benefits under the extended programs during the week ending Feb. 12. Altogether, 9.2 million people were on the benefit rolls that week.

By JEANNINE AVERSA, AP Economics Writer Jeannine Aversa Thu Mar 3, 12:32 pm ET

Manufacturing activity expands at fastest pace in 7 years

Manufacturers expanded at the fastest pace in nearly seven years last month, but a sudden rise in the price of raw materials could threaten their profits.

The Institute for Supply Management said Tuesday that its index of manufacturing activity rose to 61.4 in February, up from 60.8 the previous month. That’s the highest reading since it reached the same level in May 2004. The index bottomed out at 33.3 in December 2008, its lowest point in nearly 30 years.

Any reading above 50 indicates expansion. The manufacturing sector has expanded for 19 months.

The rebound in manufacturing is gaining momentum, the report showed. The new orders index rose to a seven-year high. A measure of order backlogs climbed to its highest level in a year. And inventories are shrinking at manufacturers and their customers. All are signs that factory output is likely to keep growing.

“The recovery in the sector is both robust and on track,” said Ian Shepherdson, an economist at High Frequency Economics.

Solid growth overseas, particularly in developing countries such as China, Brazil and India, has also helped by boosting exports. A measure of export orders rose to its highest level in more than 22 years.

And an employment index topped 60 for only the third time in a decade, evidence that manufacturers are adding employees at a rapid clip.

But prices paid for steel, plastics, rubber and other raw materials rose for a third straight month, a sign that increasing production costs could spark higher inflation.

“Growth may not be as robust as we would like because of these rising commodity prices,” said Brian Levitt, an economist at OppenheimerFunds.

High gasoline and food prices reduce the amount of money consumers can spend on discretionary items such as computers and other electronics. Manufacturers may also eat some of the higher costs, which would cut into profit margins, Levitt said.

“While there are many positive indicators, there is also concern as industries related to housing continue to struggle and the prices index indicates significant inflation of raw material costs across many commodities,” said Norbert Ore, chairman of the institute’s survey committee.

The price of materials is another challenge for the struggling construction industry. The Commerce Department said Tuesday that spending by builders fell in January to a seasonally adjusted annual rate of $791.8 billion.

That’s slightly above the decade low of $791.5 billion in August, and about half of the $1.5-trillion level that economists believe would signal a healthy construction sector. It could take four more years before construction recovers to that level, economists say.

Associated Press
March 1, 2011, 1:30 p.m.

Robust US Manufacturing Growth Leads Recovery As Consumer Spending Slows.


Bloomberg News
(2/28, Kowalski) reported that in the US, manufacturing continues to lead the recovery – and blisteringly so — with the Institute for Supply Management-Chicago index rising to 71.2 for February, “the highest level since July 1988, from 68.8 in January” and exceeding “every estimate of economists surveyed by Bloomberg News.” In fact, the index had been expected to fall. At the same time, US households spent less on purchases, “a sign the expansion will become more dependent on gains in factory production.” In addition, “manufacturers like Deere & Co. are raising profit forecasts as business investment in new equipment accelerates and exports climb as the global economy recovers.” Moreover, the Labor Department said factory payrolls were increased “by 49,000 workers in January, the most since August 1998.” The Chicago index is perhaps the most closely watched measure, but “the Fed Bank of New York on Feb. 15 said manufacturing expanded in that region this month.”

Click image below for a video on “Pace of Recovery to Quicken: Bernanke” by CNBC where Fed Chairman Ben Bernanke tells the Senate Banking Committee that the nation’s GDP growth has now matched the pre-crisis peak, reports CNBC’s Hampton Pearson.

Reuters (3/1, Mutikani) also reports the growth in manufacturing activity, also noting that the Midwestern benchmark reached the highest levels in more than 22 years. Reuters says manufacturing activity could help the US ride out fluctuations in oil prices. RBS economist Omair Sharif said, “The data shows that the manufacturing side continues to be extremely solid,” against consumer spending, which likely will be “only a modest driver of growth this year.” Swiss Re’s Kurt Karl said, “The big surprise of this recovery is how strong and how robust the manufacturing sector has been.” Reuters also notes that Fed officials are counseling against much tinkering with economic support yet.

Payroll Tax Cut Fails To Spur Consumer Spending. The AP (3/1, Crutsinger, Pitt) reports a Social Security tax cut “that economists say should help the economy this year is off to a slow start. Consumers increased their spending last month at the weakest pace since June, even with the extra money in their paychecks.” Analysts said “some people may be using the additional money to pay down holiday credit card bills or higher gas prices,” and “harsh weather may have deterred some people from shopping in January.” Consumers “increased spending by only 0.2 percent in January, the smallest gain since June, the Commerce Department said Monday. At the same time, their incomes rose 1 percent – the biggest jump in nearly two years and a reflection of the tax cut.” The increased income “is part of an additional $110 billion that economists say workers will receive this year from the cut in their Social Security taxes.”

The Washington Post (3/1, Mui) reports “rising food and energy prices ate away at the extra money workers received in January from a reduction in the payroll tax, according to government data released Monday, stalling the momentum in consumer spending.” The tax cut “saved workers roughly $66.3 billion and helped boost incomes by one percent in January compared with the previous month, the government data shows. But much of the increase went toward paying for more expensive food and fuel, which together account for about one-fifth of consumer spending, the Commerce Department report said.”

AFP (3/1, Smith) reports “adjusted for inflation, consumer spending — which accounts for about two-thirds of US economic output — actually fell for the first time in a year, by 0.1 percent from the previous year.” Bloomberg News (3/1, Chandra) reports economists “at Morgan Stanley and Deutsche Bank Securities Inc. cut forecasts as the data showed households may have used some of the extra cash from the payroll tax cuts to boost savings.”

SME Daily Executive Briefing

The Guillotine: Symbol of a Kinder, Gentler Nation?

guil•lo•tine –noun

1. a device for beheading a person by means of a heavy blade that is dropped between two posts serving as guides: widely used during the French Revolution.

2. any of various machines in which a vertical blade between two parallel uprights descends to cut or trim metal, stacks of paper, etc.

Origin:
1785–95; named after J. I. Guillotin (1738–1814), French physician who urged its use

Disclaimer: C Marshall Fabrication Machinery in no way condones beheading, and in no way, shape or form should any of its offerings be interpreted for such or similar uses.

Although the guillotine should by no means be confused with the guillotine shears sold here at C Marshall Fabrication Machinery, their basic mechanical functions can both be traced to the same origins.

Many of us are familiar with the gorgeous irony of the Nobel Peace prize, which was established by the Swedish chemist Alfred Nobel – whose original claim to fame was his invention of dynamite.

However, although its story is just as ironic as that of the Nobel Peace Prize, the history and namesake of the original guillotine is not widely known.

Most commonly associated as a bloody icon of the horrors of the French Revolution, the guillotine was originally invented by Doctor Antoine Louis, the Secretary of the Academy of Surgery in France. Its purpose was to devise a machine that would basically kill people equally. More specifically, the dawn of the French Revolution also happened to coincide with the Age of Enlightenment, which was sweeping through not only France but all of Europe at the time. As part of the restructuring of the French government, it was reasoned that a standardized and swift method of execution should be made readily and uniformly available throughout France. Also in keeping with the “enlightenment” of the times was the desire for a less painful and less torturous form of execution.

Enter Dr. Joseph-Ignace Guillotin, a big fan of Voltaire and Locke, and a champion of “humanitarian” forms of execution.

Originally laughed out of France’s new Legislative Assembly for his peace-loving, hippie-dippy beliefs (the French still preferred lots of blood, guts and noisy screaming when it came to their justice procedures), Dr. Guillotin proposed that decapitation should become the sole method of execution in France. The machine he proposed for the job was a prototype of Dr. Antoine Louis’ handy-dandy decapitation machine, which even included a privacy screen for enhanced dignity of its soon-to-be headless customers. Guillotin’s proposal was, in fact, ahead of its time in that it advocated, for the first time in France’s history, a fast and painless method of execution that was egalitarian, regardless of background, social status, age, sex or rank: in short, it was seen as an embodiment of such enlightened concepts as humanity and equality.

If Death is the great Equalizer, then the guillotine was its first true enforcer.

In spite of his lofty ideals, once Guillotin’s proposal took hold in actual French law, his name became irrevocably associated with rolling heads, and thus the name “guillotine” was born. Dr. Guillotin’s children, who were none too thrilled by this association, respectfully requested that the French government change the name of the beheading machine. Although the government wouldn’t concede to their request, it did offer them the option of changing their own names – which they did, to distance themselves from the icon of execution that had become their namesake.

The fact that guillotine shears still to this day operate on the same basic principles as the original beheading machine is a testament to their functionality of design. In this sense, at least, the Age of Reason seems to have prevailed. After all, “if it ain’t broke, don’t fix it”; and as long as you read the instructions, you probably won’t lose your head using one.

-Anja Wulf

US Manufacturing News

US Manufacturing Remains Strong, Expert Writes.

In an article titled “The Truth About US Manufacturing,” Mark Perry, a professor of economics at the University of Michigan, Flint, and a visiting scholar at the American Enterprise Institute, writes in the Wall Street Journal (2/25, Perry, subscription required) that while some people may believe that manufacturing is on the decline in the US. But the data, Perry writes, shows that manufacturing remains strong in this country. Times are tough for many in the industry, Perry concedes. But he argues that with the proper skills, American workers will still have a place in the new US manufacturing economy.

Kansas City Regional Manufacturing Activity Index Hits Several Highs.

The Kansas City Business Journal (2/25, Dornbrook) reports, “Regional manufacturing activity hit several highs in February, and companies also expect strong activity in the months ahead, according to a survey by the Federal Reserve Bank of Kansas City.” The Kansas City Fed reported “the seasonally adjusted index, which can range from 100 to minus-100, came in at a high of 23,” up from 18 this time last year. “Other measurements also hit highs, with the index reflecting new order volume surging and the employment index swinging to a positive reading.”

SME Daily Executive Briefing, Febr. 25, 2011

Touch Command EVO

The Newest Evolution in CNC Technology

MG is very proud to introduce the Touch Command EVO – the latest version of their popular CNC system completely designed and flawlessly integrated with MG machines through years of research and development. The control retains its easy to use interface on the surface of previous controls that our customers have enjoyed; however, underneath it there is an all new extremely powerful engine which delivers a precision of control never before found on a plate rolling machine. This is mainly achieved by the new closed loop system which constantly monitors the rotation and side roll positions.

There are some unique challenges when it comes to designing a true CNC control for a plate rolling machine. The main challenge is the difference in yield tolerances of the material being rolled.

Let’s look at A516 gr70 which is one of the most common types of steel plate used today. It has a minimum yield rating of 38,000 psi; however, it’s possible for the yield to be higher than the minimum rating, let’s say 45,000 psi for this example:

Company A is receiving material that is 38,000 psi from a supplier in the Northwest  and company B is receiving material from a different supplier in the Midwest that is 45,000 psi. If these two plates are rolled on the same machine using the same settings they will roll to different diameters due to the different yields even though they are both A516 gr70 plates. There is not a CNC control available that can take these differences into account and automatically adjust for them without some operator intervention.

MG has taken the unique approach of designing a material library that can be adjusted to work specifically with the material you are receiving. This is done by making 3 test bends with your specific material and inputting the diameters that were actually achieved. Once this is done and the computer understands how your material reacts or springs back, it can accurately auto-generate programs of virtually any shape required with the material you adjusted the library for – round, square, triangle, elliptical, etc.

If you do happen to buy material that has a slightly different yield than normally you can use the powerful corrections page which gives you the ability to adjust any section of the part you are rolling independently. The transitions on parts with more than one diameter are flawless due to the all new closed loop system that was designed to check for the correct side roll position every 0.039 inches of rotation. If the side rolls starts to deviate from the correct position during a transition the rotation will speed up or slow down automatically to ensure the transition is correct. This is crucial when rolling parts with changing diameters.

There is also a completely new CAD system included which allows you to draw shapes to be rolled right on the control or if you prefer you can upload a DXF file. After your shape is loaded just choose your material and the computer will generate a program to roll your part. The number of steps in a program along with how many programs can be stored are virtually unlimited. The touch screen is easy to navigate and can be used while wearing gloves. Programs can be backed up via USB keys for easy offline storage.

The CNC Touch Command EVO is the most user friendly and accurate rolling sytem ever produced for a plate roll. Thanks to the above-described closed loop system the material waste has been virtually eliminated.

Technical Characteristics:

  • Amount of saved programs is virtually unlimited
  • Amount of steps per program is virtually unlimited
  • Linux operating system
  • New generation mother board conforms to Rohs regulations
  • Integrated graphical card with accelerated 3D hardware
  • Intel Celeron Mobile 1.5 GHz CPU with lower operating temperature (optimal for industrial environments)
  • Memory DIMM type DDR 1 GHz
  • The direct connection of the LVDS display leaves the VGA port open for connecting an external monitor
  • The touch screen display conforms to Rohs regulations
  • Calculation Capacity has tripled compared to previous versions
  • Front panel with more input/output ports: 2 USB, 1 Serial, 1 Ethernet

When choosing a 4 roll machine with a CNC control there really is no better choice than the Touch Command EVO.

By Brian Hill, MG

Touch Command EVO

The Newest Evolution in CNC Technology

MG is very proud to introduce the Touch Command EVO – the latest version of their popular CNC system completely designed and flawlessly integrated with MG machines through years of research and development. The control retains its easy to use interface on the surface of previous controls that our customers have enjoyed; however, underneath it there is an all new extremely powerful engine which delivers a precision of control never before found on a plate rolling machine. This is mainly achieved by the new closed loop system which constantly monitors the rotation and side roll positions.

There are some unique challenges when it comes to designing a true CNC control for a plate rolling machine. The main challenge is the difference in yield tolerances of the material being rolled.

Let’s look at A516 gr70 which is one of the most common types of steel plate used today. It has a minimum yield rating of 38,000 psi; however, it’s possible for the yield to be higher than the minimum rating, let’s say 45,000 psi for this example:

Company A is receiving material that is 38,000 psi from a supplier in the Northwest  and company B is receiving material from a different supplier in the Midwest that is 45,000 psi. If these two plates are rolled on the same machine using the same settings they will roll to different diameters due to the different yields even though they are both A516 gr70 plates. There is not a CNC control available that can take these differences into account and automatically adjust for them without some operator intervention.

MG has taken the unique approach of designing a material library that can be adjusted to work specifically with the material you are receiving. This is done by making 3 test bends with your specific material and inputting the diameters that were actually achieved. Once this is done and the computer understands how your material reacts or springs back, it can accurately auto-generate programs of virtually any shape required with the material you adjusted the library for – round, square, triangle, elliptical, etc.

If you do happen to buy material that has a slightly different yield than normally you can use the powerful corrections page which gives you the ability to adjust any section of the part you are rolling independently. The transitions on parts with more than one diameter are flawless due to the all new closed loop system that was designed to check for the correct side roll position every 0.039 inches of rotation. If the side rolls starts to deviate from the correct position during a transition the rotation will speed up or slow down automatically to ensure the transition is correct. This is crucial when rolling parts with changing diameters.

There is also a completely new CAD system included which allows you to draw shapes to be rolled right on the control or if you prefer you can upload a DXF file. After your shape is loaded just choose your material and the computer will generate a program to roll your part. The number of steps in a program along with how many programs can be stored are virtually unlimited. The touch screen is easy to navigate and can be used while wearing gloves. Programs can be backed up via USB keys for easy offline storage.

The CNC Touch Command EVO is the most user friendly and accurate rolling sytem ever produced for a plate roll. Thanks to the above-described closed loop system the material waste has been virtually eliminated.

Technical Characteristics:

  • Amount of saved programs is virtually unlimited
  • Amount of steps per program is virtually unlimited
  • Linux operating system
  • New generation mother board conforms to Rohs regulations
  • Integrated graphical card with accelerated 3D hardware
  • Intel Celeron Mobile 1.5 GHz CPU with lower operating temperature (optimal for industrial environments)
  • Memory DIMM type DDR 1 GHz
  • The direct connection of the LVDS display leaves the VGA port open for connecting an external monitor
  • The touch screen display conforms to Rohs regulations
  • Calculation Capacity has tripled compared to previous versions
  • Front panel with more input/output ports: 2 USB, 1 Serial, 1 Ethernet

When choosing a 4 roll machine with a CNC control there really is no better choice than the Touch Command EVO.

 

 

Small and midsize businesses sensing better times ahead

More Businesses Seeking Loans, Making Acquisitions.

In the last three months of 2010, U.S. Bancorp wrote $8 billion in new business loans, the most in two years. JPMorgan Chase added 400 midsize companies as clients. And bank loans overall grew for the first time in two years, according to the Federal Reserve.

“Companies are talking about growth in ways they haven’t for three years,” says Perry Pelos, head of Wells Fargo’s commercial banking.

Loans are one of the best gauges of economic growth. Small and midsize businesses that form the backbone of the U.S. economy take them out to pay for business needs — unlike big corporations, which go to the bond markets for low-cost debt.

Borrowing by smaller companies is being watched especially closely because it may indicate those companies are preparing to hire. So far, the economic recovery hasn’t been accompanied by job growth. Small companies created about three of every five new jobs over the past two decades.

Those companies took a pummeling during the recession. Bankruptcies skyrocketed and led to massive job cuts. Firms employing fewer than nine people accounted for more than half the jobs lost in the first quarter of 2010, just after the recession technically ended, according to the Labor Department.

Many small businesses blame banks for making matters worse by pulling back credit dramatically after the financial crisis.

Vu Thai, president of Efficient Lighting of Buena Park, Calif., wanted more space to house his energy-efficient light bulbs and fixtures at the end of 2008. “Nobody would lend to us,” Thai says.

But demand for Thai’s bulbs increased, and he snagged Home Depot as a customer last year, sending sales up 10 percent. In December, Thai secured a $100,000 loan to install racks and other equipment in his new warehouse. He bought the space with another loan of $1.6 million taken jointly from Bank of America and a government program for small businesses.

In another hopeful sign, about 75 percent of the loans taken out in the last three months were to pay for mergers and acquisitions. That shows that companies that can afford it are buying up weaker competitors as they prepare for growth in the months ahead.

“After surviving a brutal recession, companies are starting to look around them for opportunities to get stronger,” says Laura Whitley, an executive at Bank of America’s global commercial banking business.

Excerpt from article written by PALLAVI GOGOI AP Business Writer
7:04 a.m. CST, February 22, 2011

Click HERE for full article.

Plasma Burning Machine

Cutting with profit. Less scrap, more automation, higher performance.

Standard Features

  • Solid steel construction designed for high speeds
  • Fume extraction table with pneumatic switch control, exchangeable grills, dross collecting system which allows clean, safety and healthy working environment by vacuuming dust and fume which raises during plasma cutting process
  • High precise positioning possibility with linear sledge system in all axis
  • Synchronized drive allows a smoothly and vibration free motion
  • Brushless AC servo motors  ( on all axis)
  • Pinion and gear rack drive system facilitates smooth and fast motion
  • Up to  +.004” precise positioning
  • Automatic height control and automatic ignition torch system
  • Torch collision protection
  • Windows based CNC control unit
  • Vestige plate stock management database with optional auto-nesting program which provides economy on material and saves time
  • In comparison to laser cutting, plasma cutting decreases the cost of the process by 20%. With similar cutting quality, plasma is a preferable alternate to laser cutting.
  • Cutting surface is close to 90 degrees and the vertical roughness tolerance is in minimum level.
  • Manual

HYPERTHERM EDGE UNIT (USA)

  • Graphical user interface, easy and flexible use with SOFTMOTION technology
  • Windows based industrial PC
  • Touch screen display
  • Strong and reliable processor
  • 15” LCD Monitor (touchscreen)
  • Standard  PC power supply
  • Automatic and manual control during oxy-cutting process
  • USB, CD, floppy disc input to load the shapes
  • Cutting processes are can be followed from the screen

HYPERTHERM 130

  • Cutting mild steel from .020” to 1.5”
  • Prevents dross by cutting, so no second cutting process required
  • Easy, fast and correct gas usage through optional auto gas control.
  • Saves cost by high definition cutting quality.
  • Depending on material no or only little dross formation
  • Durable torch consumables
  • Minimum gas and energy loss through high definition plasma arc technology
  • Repeatable cutting quality
  • Perfect cutting quality of Hy-performance on stainless steel
  • Durable consumables
  • Hy-performance plasma control is user friendly.
  • Changing of the torch very easy and fast
  • Bevel cutting possibility up to 45 degrees.
  • Marking is also achievable with the same torch. With the continuously
    current gauge the cutting performance could be repeated up to 1-9/16”.

HYPERTHERM Command THC

Height control

  • Torch height control can be adjusted easily by arc voltage feedback control which affects the cutting quality positively.
  • Collision avoidance system is designed mechanically and electronically.
  • Torch height control system through microprocessor.
  • All values and also errors could be found easily through the relaying indicators.
  • Optional breakdown is designed in order to reduce or eliminate damage to the torch due to accidental collisions in all axis.
  • System control can be reviewed or can be transferred to the CNC control.

Factory Activity Grows; Utilities Dip After Storms

by The Associated Press
February 16, 2011

Factories produced more goods for the fifth straight month in January as strong auto sales spurred demand for new cars and trucks. But overall U.S. industrial production fell for the first time in 19 months.

Output by America’s factories, mines and utilities dipped 0.1 percent last month, the Federal Reserve said Wednesday. The decline was caused mostly by a decrease in output by utilities after a weather-related peak in December.

Industrial production increased in every month but one last year. It has risen by more than 11 percent since hitting its recession low in June 2009. But it remains about 6 percent below its pre-recession peak in 2007.

Manufacturers boosted their output last month by 0.3 percent, led by increased production of autos and business equipment. Output of consumer goods edged up modestly.

“Despite a small decline in overall industrial production, solid growth in the manufacturing sector continues to lead the recovery,” said Thomas Duesterberg, president and CEO of the Manufacturers Alliance/MAPI, an industry group.

Duesterberg said the group expects demand for exports, business equipment and long-lasting consumer goods such as autos to boost factory output by at least 5.5 percent this year. That’s the same amount it increased in the past 12 months.

“If relative weakness in the aerospace sector and in construction materials and supplies for the U. S. market were to turn around, we could see even stronger growth in 2011 and 2012,” Duesterberg said.

The increase in factory output was expected, in part because factories added 49,000 jobs last month, the most since August 1998. And factory employees worked longer hours, another positive sign for output.

Severe winter storms in January might have limited some factories’ ability to increase production.

Overall production increased in December by the largest amount in seven months. The Fed revised December’s production gains upward to 1.2 percent from 0.8 percent.

U.S. industry operated at 76.1 percent of its total capacity in January, a decline of 0.1 percent from December, the Fed said.

Manufacturing is the single largest component of industrial production. Output by utilities decreased by 1.6 percent in January. Mines produced 0.7 percent less.

Sales of cars and light trucks in January rose 17 percent from a year earlier, as Americans signaled that they were ready to replace their clunkers. Nearly all big car companies reported double-digit gains for the month, a sign that the slow recovery in U.S. auto sales that began in 2010 remains on track.

Sales of auto parts also have boomed, as some consumers choose to drive their cars longer.

Brisk demand helped auto makers produce 3 percent more cars and parts in January than they did in December, the Fed said.