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The Timken

In: Business and Management

Submitted By marthia
Words 6456
Pages 26
The bearing industry
Bearings industry of various sizes and specifications found their way into everything from space shuttles to household appliances, automobiles, dentist drills, roller skates, and computer disk drives. The bearing industry was facing a variety of complex problems. Policies favoring the steel industry were not always in the best interest of the bearing industry, which, as manufacturers of secondary steel products, was in the middle of the production chain. Because bearings were essential components of military and civilian machinery and equipment, the federal government had historically been a major customer.

By following the life Cycle we have the stages of the industry in U.S which Timken operates:

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Start-up : Before 1990 , with increasing competition from Europe and Japan, the industry started a new segment .

Fast growth : between the stage 1990 to 1998 , Shipments of ball and roller bearings grew steadily and peaking in 1998 at more than $5.8 billion .1999 and 2000, the value of shipments remained relatively strong

Moderate growth: in 2001 ,the industry faced economic recession, decreased automotive demand, and the terrorist attacks on September 11, 2001. the value of shipments dropped dramatically , sinking to $5.3 billion, the lowest since 1995. There had been moderate growth in the sector in 2002, led by automotive production, which had risen 5% owing to sales incentives, including 0% financing .

Plateau and Decline : the bearings-industry demand was expected to soften as automotive demand had begun to decrease in late 2002 and was generally expected to remain flat for 2003. Thus, the bearings industry appeared to be in a cyclical trough from which many analysts predicted a more widespread recovery in 2003 of about 2% to 3% growth.

Bearings worldwide were doing significantly better. Orders had increased

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