What is Corporate Welfare

Metal Fabrication- Analysis May 2016 North AmericaBy: Paul Young, CPA, CGA

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This presentation is on perspective when it comes to Metal Fabrication

Paul Young - Presenter

BioCPA/CGA25 years of experience in Academia, Industry and Financial solutionsYoutube Channel - https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

AgendaSteel IndustryMetal Processing CentersCommodity PricesOil RigsAutomotiveClass 8 Truck SalesAG EquipmentPower GenerationInfrastructureIssues facing metal fabricationGovernment Policies

Steel Industry

1. Source: - World Steel Industry 5

Metal Processing Centers

1. Source - http://americanmachinist.com/print/news/rebound-service-centers-steel-6

Commodity Prices

1. Source: BMO7

Key Sector Oil Rigs

The rig countboth internationally and domestically here in the U.S.continues its historic slide. Last Friday Baker Hughes announced the average rig count numbers for April. Rigs operating outside the U.S. slide another 39, from 985 in March to 946 in April. In the U.S., the count slide 41 from 478 in March to 437 in April. In the Marcellus/Utica, the count was down another 2both rigs lost came in Pennsylvania, which now has the lowest count in decades: just 16 rigs operating in the state. Ohio and West Virginia held constant month over month with 11 rigs operating in the Buckeye State and 12 rigs operating in the Mountain State. Heres the sad news of the continuing decline in rig counts

Oil Rigs - http://www.prnewswire.com/news-releases/baker-hughes-announces-april-2016-rig-counts-300264200.htmlhttp://marcellusdrilling.com/2016/05/april-2016-rig-counts-continue-to-slide-in-world-us-marcutica/

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Automotive Production

1. Scotia Bank9

Class 8 Truck Sales

April Heavy truck sales dropped 18.9 percent from the same month last year and 17 percent from the previous month, WardsAuto reported. Year-to-date, sales through April fell 10.3 percent from the first four months of 2015

1. The Trucker10

Agriculture Equipment

Equipment - https://www.aem.org/market-data/statistics/us-ag-tractor-and-combine-reports/

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Power Generation

1. http://www.iea.org/media/statistics/surveys/electricity/mes.pdf 12

Infrastructure Spending

CanadaBuild Canada FundGas Tax FundNew Commitments from Federal GovernmentProvinces spending on TransitMunicipalities spending on bridges/RoadsUnited States- The USA in particular is seeing a great deal of interest, moving it up the index from 11th in 2012 to 8th in 2016. This rise is driven by its recently revived solid economic position, low risk environment and strong financial sector. Given the massive opportunities in the country, there is a lot for investors to get excited about. In the transport sector alone the investment gap is estimated at around $86.5bn per annum.

1. https://www.arcadis.com/media/3/7/E/%7B37E96DF6-82D5-45A6-87D8-5427637E736D%7DAG1015_GIII%202016_ONLINE%20FINAL_SINGLE%20PAGES.pdf

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Issues facing Metal FabricationThe research comes at a time of increasing anti-China rhetoric in US politics, and ahead of three politically sensitive anti-dumping casesthis summeragainst Chinese steel imports that could result in the US imposing punitive duties of as much as500 per cent.GDP Growth forecasted 3.1%. Countries like China, Brazil and others are struggling with growthRetail sales growth 1.5 % to 2.3% rangeGovernment strapped for cash (infrastructure)Defense spending curtail (Canada and USA)Skills Trades Gaps (Laser Welding, Robotics, Welders, Engineers, Advance Material, 3-D Printing, etc)

https://next.ft.com/content/619df950-1ec4-11e6-b286-cddde55ca122https://www.arcadis.com/media/3/7/E/%7B37E96DF6-82D5-45A6-87D8-5427637E736D%7DAG1015_GIII%202016_ONLINE%20FINAL_SINGLE%20PAGES.pdf

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Government Policies Metal FabricationCanadaAutomotive AerospaceFoodMiningForestryUnited StatesInnovation Funds for various manufacturing

http://www.mentorworks.ca/blog/government-funding/2016-04-automotive-innovation-fund-research-and-development-funding-overview/http://www.thefabricator.com/article/shopmanagement/tennessee-metal-manufacturer-ramps-up-research15

SourcesContact: paul_young_cga@Hotmail.comOther linksCanadian Manufacturing https://www.youtube.com/watch?v=Ea-kch0s94ERetail Sales - https://www.youtube.com/watch?v=BzBFIxFy5FoProfitability - https://www.youtube.com/watch?v=lL0k153FQlICultivating Innovation - https://www.youtube.com/watch?v=BEIP8kV5IWgHow to grow an economy - https://www.youtube.com/watch?v=lzV8L1tU6k0 Government Policy - https://www.youtube.com/watch?v=9mDGerSGIg0Infrastructure - https://www.youtube.com/watch?v=RDI5oMt1SIM