MCAA BENEFITS & RESOURCE GUIDE

This booklet is designed to provide an overview of member benefits and resources. Where possible, examples and sample data have been included.

Who is the Measurement, Control & Automation Association?

The Measurement, Control & Automation Association (MCAA) is the national trade association representing leading manufacturers and distributors of instrumentation, systems and software used in industrial process control and factory automation worldwide. Our member companies include the leading multi-national companies together with a range of more niche-oriented providers.

Since 1944 our mission has been constant. We help member companies operate & expand their businesses by providing industry data, market trends, technical education, and networking.

We believe in ethical behavior, an equal voice for all members, diversity, integrity, and safety. We are member-focused and foster a collaborative community while protecting all proprietary and confidential information.

MCAA offers members…

 A valuable and cost-effective source of unbiased market data for the North American Market

 Effective manufacturer/distributor industry networking opportunities

 Unparalleled market insights, best practices, technical education and future trends

Membership Dues

MCAA offers three categories of membership, including manufacturers, channel partners (reps/distributors/systems integrators) and associate members who have a substantial connection to the industry and provide resources for other members.

We have a tiered dues system based on annual sales volume for each membership category. For a quote or to discuss the value that MCAA will bring to your organization, call Teresa Sebring, MCAA President at 757.258.3100 x1001 or email sebring@themcaa.org to schedule an appointment.

ThinkoftheMCAAteamasanextensionofyourown. Weheretohelp.

Go-To Resource for anything MCAA

Teresa Sebring, President (757)258-3100x1001 sebring@TheMCAA.org

For assistance with a specific resource or data program

Andrea Ambrose, Director of Member Resources (757)258-3100x1005 ambrose@TheMCAA.org

Need help with an invoice, meeting registration, or access to the member portal

Rebecca Moore, Administrative Manager (757)258-3100X1002 moore@TheMCAA.org

For information about the website, social channels or an update to a member page

Kim Malina, Marketing Communications Manager (757)258-3100x1003 malina@TheMCAA.org

For questions about data contribution

Elizabeth Horton, Programs Data Manager (757)258-3100x1004 horton@TheMCAA.org

Industry & Market Insights

Industry Market Forecast

The Industry Market Forecast is one of the most anticipated reports of the year. Global Automation Research, a professional firm that specializes in business consulting and research for the instrumentation and automation industry, prepares the report exclusively for MCAA members. The forecast provides a 5-year projection and examines in-depth, 15 product categories and 12 industry segments for US and Canada.

Product Categories:

 Gas Analytical Instruments

 Mechanical Level/Tank Gauging

 Liquid Analytical Instruments

 Temperature Instruments

 Pressure Instruments

 Control Systems

 Electronic Flowmeters

 Remote I/O

 Mechanical Flowmeters/Primary Elements

 Data Acquisition Systems

Industry Segments:

 Oil & Gas (production and transmission)

 Petroleum refining

 Chemicals

 Bio-pharmaceutical

 Food & Beverage

 Pulp & Paper

 Electric Utilities

 Municipal Water & Wastewater

 Primary Metals

 Stone, Clay & Glass

 Electronic Level

 Final Control Devices

 Flame & Gas Systems

 Safety Instrumented Systems

 Switches & Gauges

 All Other (semiconductor, textiles, etc.) Published

3. Introduction

2020 Forecast Scenarios

The forecast charts this year are designed to present the key aspects of three scenario forecasts.

The three scenarios are:

V-Recovery – assumes that the entire 2020 period loss will be recovered by the end of 2021 period.

Slump Recovery – assumes that the 2020 loss will be recovered by 2023 or 2024, depending on the industry segment.

Mid-Range Recovery – assumes the 2020 loss will be recovered by 2022 or 2023, depending on the industry segment.

Forecast Charts Explanation

Chart 1 – shows the market value for the three scenarios (left axis, columns) and the annual percent change (right axis, dashed lines). The three scenarios are color coded: VRecovery is green, Mid-Range Recovery is orange, and the Slump Recovery is blue. The charts show the relative magnitude ($Millions) of the three scenarios. It also shows the relative annual growth rate forecast for each scenario. In the following report, these charts are provided for each industry segment and product category. In each industry segment, the factors considered in developing the three forecast scenarios are discussed.

Chart – 2 shows the cumulative market value for each scenario. The cumulative values provide the data for evaluation of investments versus market potential (Present Value, IRR, etc.)

Chart 3 – shows the distribution of market value and annual growth rate versus industry segment for the Mid-Range Recovery forecast.

Chart 4 - shows the distribution of market value and annual growth rate versus each product category for the MidRange Recovery forecast.

Chart 2

Chart 3

Chart 4

Insights from ITR Economics

Prepared exclusively for MCAA members, the Economic Overview is published in March and August. The report examines the US Industrial Production index and provides supporting information for leading indicators and a three-year forecast for each. ITR also examines MCAA’s consistent bookings index. Report includes these US Sectors:

 Chemical & Chemical Production

 Food Production

 Paper & Paper Product Production

 Mining Production

 Electric Power Generation, Transmission & Distribution Production

 Public Water & Sewer Facility Construction

 Leading Indicators

 Management Objectives for each phase of the business cycle

ITR Economics also provides the monthly Industrial Insights which examine various market segments. Published on the 25th of the month, reports include:

 Trend and rate-of-change graphs

 Market Analysis

 3-year forecast for the market reported

 Management objectives

US Market segments rotate throughout a 12-month period. The series includes:

 Oil & Gas Extraction Production

 Industrial Machinery New Orders

 Wholesale Trade of Durable Goods

 Public Water & Sewer

 Food Production

 Electrical Equipment New Orders

 Metalworking Machinery New Orders

 Private Sector Employment

 Wholesale Trade of Nondurable Goods

 Industrial Production

 Mining Production

 Chemical & Chemical Product Production

USIndustrial ProductionIndex

Annual Trend: 109.3

USIndustrialProductionIndexForecast

Industry Outlook

2020: -3.7%

2021: 3.2%

2022: 1.4%

• Decline in annual average Industrial Production, underway before the onset of COVID-19 outbreak and the Russia-Saudi price war, will likely intensify amid government intervention and efforts to "flatten the curve". This necessitated a downward revision to the forecast.

• We lowered the year-end 2020 annual growth rate forecast by 4.4 percentage points. The 2021 outlook is 1.2 percentage points higher than our outlook from the August 2019 report.

• Annual Production will contract into early 2021. When annual average Production reaches a low, it will be approximately 3.7% below where we were at the end of 2019.

• Downside risks are more numerous than upside risks. They include: governmental intervention in an effort to mitigate the spread of COVID-19 and HR 6201 the Families First Coronavirus Response Act. Both are likely to increase the magnitude of layoffs in the economy.

• The $2 trillion stimulus bill also poses a risk to this forecast. This level of stimulus is unprecedented and introduces the potential for unintended consequences.

US Oil & Gas Extraction Production

HIGHLIGHTS

• Double-digit growth rates are unlikely to persist in the upcoming three years

• The Production 12MMA will generally rise through at least 2022, but at single-digit rates

• Our long-term outlook is underpinned by our outlook for World Industrial Production

RATE-OF-CHANGE

DATA TREND

OVERVIEW

The US Oil and Gas Extraction Production 12MMT in November was 11.5% higher than one year ago. The US Oil and Gas sector boomed in 2018 and 2019, maintaining double-digit growth during most of that time. While such robust growth is not likely during the next three years, we nevertheless expect the 12MMA to set record highs in 2020, 2021, and 2022. Plan for more-robust growth in 2021 relative to the other two years.

This market will still be an area of opportunity in the upcoming years, as rising World Industrial Production will likely lead to rising demand through at least 2021. However, as 2022 progresses, the anticipated recession in World Industrial Production could negatively impact demand for oil and gas. Hence, expect 2022 to be a lessrobust year for the oil and gas sector than 2021. Changes to supply due to actions by OPEC, newly-found reserves, or improved technology could pose risks to the outlook.

LINKS

ITR MANAGEMENT OBJECTIVE

Total Bookings for consistent MCAA members during the 12 months through November were 0.7% below the year-ago level. Both Export Bookings and Domestic Bookings during the three months through November were above the same three months from the prior year, with Exports (up 6.5%) growing at a higher rate than Domestic Bookings (up 1.4%). MCAA members whose businesses are linked to the oil patch may be feeling the effects of slowing growth in US Oil and Gas Production. While expected to avoid Phase D, Recession, Production may not see more noticeable upward business cycle momentum until 2021. Plan for record-high levels of Production through 2022 but avoid straight-line projections. Production growth is unlikely to match the current pace through at least 2022, and the North American Rotary Rig Count is projected to oscillate between about 900 and 1,400 rigs through at least 2022.

ITR Advisor Economic Newsletter

The ITR Advisor is a simple and essential quarterly Newsletter. The 4-page report provides a snapshot of the state of the US and global economy at the end of each calendar quarter.

It offers an overview of key indicators like:

 Retail Sales

 Wholesale Trade

 Manufacturing

 Interest Rates

 Private Sector Jobs

 Capital Goods Orders

The articles include noteworthy developments beneath the headline. This is information that business decision-makers and investors need to know to act promptly and decisively on crucial data and shifting trends.

ITR creates the Advisor in a conversational tone. It is a simple, quick, and timely way to stay informed about the state of the economy, with useful guidance and clear action points.

Industry Snapshots

Macroeconomic Outlook

As 2021 looms ahead, plenty of signals are emerging from the US economy to give cause for optimism. Our dashboard of leading indicators suggests that, barring widespread shutdowns, the US industrial sector will transition to a business cycle rising trend in the coming months. We also expect a more inflationary environment in 2021 as recovering industrial activity yields higher demand for inputs. The distribution of a COVID-19 vaccine will likely aid in the bourgeoning recovery.

Further cause for optimism stems from US Nondefense Capital Goods New Orders (excluding aircraft); quarterly New Orders are already up 7.8% compared to the same time period in 2019. We expect businessto-business spending to generally rise through at least 2021. Within the B2B sector, US Computers and Electronics New Orders and US Nondefense Communications Equipment New Orders are driving recent positivity as employees and firms procure equipment to facilitate remote work and investment related to the 5G rollout occurs. In contrast, the US Machinery New Orders segment of the B2B world is having a more sluggish recovery, with quarterly New Orders 0.6% below the year-ago level. Those tied to this sector may still experience some weakness heading into 2021, but that weakness will give way to strength as 2021 progresses.

On the consumer side, quarterly US Total Retail Sales are up 5.3% year over year. However, this very favorable number belies some recent weakening; Retail Sales for the month of November were down 1.3% from the prior month. This is only the fourth instance of October-toNovember decline in the last 20 years, and it suggests we could be in for some very near-term struggles on the retail side of the economy. That being said, low US Credit Card Delinquency Rates, very high savings rates, and US Disposable Personal Income above the prepandemic level show that the US consumer is in a fundamentally solid position; the consumer will drive the US economic recovery forward in 2021 as a COVID-19 vaccine facilitates increased activity.

Consumer strength is already readily apparent in the single-family housing market. Third-quarter US New Homes Sold were up 47.0% relative to the third quarter of 2019. This is the most robust rate of rise since the early 1980s. Historically low mortgage rates and low home inventories will likely drive rise in US Single-Unit Housing Starts during at least the first half of 2021.

With these positive signals in mind, consider your capacity needs for 2021; take advantage of low interest rates to invest in the equipment and technology necessary to accommodate a robust rising trend. Ensure your raw materials suppliers are geographically diversified in order to minimize disruptions and capacity constraints in the coming year.

“The consumer will drive the US economic recovery forward in 2021“

Arrow denotes 12-month moving total/average direction.

Steep Rise Mild Decline Steep Decline Mild RiseFlat

Global Investment Committee Weekly

The Global Investment Committee Weekly is a resource published by Morgan Stanley. The indepth newsletter provides the latest insights on macroeconomic, industry, and market trends around the world.

The Global Investment Committee (GIC) is a group of seasoned investment professionals that meet regularly to discuss the global economy and markets. They continually monitor developing economic and market conditions, review tactical outlooks and recommend asset allocation weightings, as well as produce a suite of strategy, research, analysis, commentary, and other reports and broadcasts.

Reports are published every Monday by 10 AM ET.

Global Investment Committee |

The GIC Weekly

Starting Points Matter

The specter of an extended war in Ukraine, fought by the West with escalating sanctions on Russia, raises the question of stagflation. The one-year forward yield curve is inverting, suggesting rising probabilities of a policy error and a recession. The usual crisis-fighting tools are unavailable, but we don’t expect a recession. The stock and bond markets are volatile and richly priced. The equity risk premium is premised on low terminal rates, lower real costs of capital and sustainable record-high profit margins. The bond risk premium still assumes inflation is transitory. The US economy may be better insulated than the capital markets for this scenario: growth is decelerating, but from a high rate; cash balances at companies, within the banking system and in households are ample; and credit usage and interest rate sensitivity are low. What’s more, the labor market is tight, so the outlook for wage gains is bright. When prospects for the economy and the market diverge, investors should seek active management. Consider selectively snapping up quality companies that have reasonable valuation support. Focus on financials, energy, industrials, health care and consumer services.

The rapid evolution of events in Russia/Ukraine over the past week have lifted stock and bond volatility to multiyear highs. Even so, headline stock indexes have managed to stay within their recent ranges as equity investors have lurched from one market narrative to another to explain a 10-year US Treasury yield that has swung from 1.58% to 1.94%. Of great concern are the implications of the crisis for commodity prices and, in turn, inflation. After all, in the past week oil prices have soared as much as 15% to $115 per barrel, and there were large gains in prices for agricultural products, fertilizer and industrial metals. The Bloomberg Commodity Index jumped 11% in five days. That is the stuff of classic supply shocks. Similarly, as it is clear that the West will fight Russia’s incursion with economic sanctions, investors have begun to worry about the impact on global trade and global growth. These scenarios of higher inflation and lower growth suggest not only stagflation but portfolio positioning that favors megacap growth stocks. Some investors see the two-year/10-year US Treasury yield curve is inverted on a one-year forward basis and believe it will lead to recession (see FixedincomeInsight). However, the

Lisa Shalett

Chief Investment Officer

Head of the Global Investment Office

Morgan Stanley Wealth Management

Lisa.Shalett@morganstanley.com

+1 212 296-0335

Upcoming Catalysts

March 07

US consumer credit

Germany factory orders

March 08

Germany industrial production

NFIB Small Business Optimism Index

US trade balance

China Producer Price Index

China Consumer Price Index

March 09

Japan Producer Price Index

JOLTS Job Openings

March 10

US Consumer Price Index

US initial jobless claims

US continuing claims

US real average hourly earnings

Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States. This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy.  Past performance is not necessarily a guide to future performance. Please refer to important information, disclosures and qualifications at the end of

Global Investment Committee (GIC) does not believe this is the time for traditional playbooks.

For starters, think about policy settings. Typically, during a supply shock, central banks respond with massive policy accommodation as they did in 2020. But central bankers come to this phase of the cycle already well behind the curve on fighting inflation and have little room to shift course. Even before the recent surge in prices, realized annualized inflation in the US was running at a 40-year high of 7.5% and in Europe at an all-time high of 5.8%. In his Congressional testimony last week, Federal Reserve Chair Jerome Powell acknowledged that market pricing for a 25-basis-point hike in the fed funds rate this month is squarely on track. He also plans to outline balance sheet normalization by summer. In short, the Fed may be tightening into a slowdown in which inflation remains persistent.

Does this scenario have the same implications for markets as for the economy? We don’t think so. Recall the adage, “the economy is not the stock market and the stock market is not the economy.” Rarely has this thought been more important. Given their rich valuations, stocks and bonds have become tethered to the policy rate, yet the economy has become less rate sensitive. The economic cycle is more lumbering, readjusting to various operating utilization levels with the balance of credit/savings and investment as fuel. In contrast, the market in the short term is a discounting machine that works on the direction in the rate of change and degrees of momentum. In the longer term, the market moves on valuation, or what is already discounted. In that sense, starting points matter a lot. Currently, expectations are high and guidance has begun to disappoint; nearly 75% of forward guidance this quarter has been negative, the worst since 2016’s first quarter. For the economy, expectations have weakened yet the Citi US Economic Surprise Index is trending higher. That is where we find ourselves in having to analyze this supply shock and the potential implications of stagflation against a potentially impotent Fed.

We see the current scenario producing strong headwinds for stocks. Higher interest rates mean lower valuation multiples while Fed actions lead to less liquidity and tighter financial conditions. As for earnings, the market is more exposed than ever to global trade, international growth and non-US sales. At the same time, inflationary pressures are pushing up the costs for raw materials, energy, distribution and labor. While end-market pricing power may be disrupted by industryspecific supply chain problems, some inventories have already been rebuilt. Our ChartoftheWeekillustrates just how sensitive corporate margins are to slowing purchasing managers data.

On the other hand, the aggregate economy may be more

resilient than the markets. While inflation in energy and food prices will undoubtedly create stresses to consumption, in the intermediate term, we see offsets that don’t typically exist during periods of inflation and Fed tightening. Specifically, credit capacity is ample and cash balances at companies, in the banking system and within households are bountiful. The economy’s interest rate sensitivity is also quite low given limited use of floating-rate credit and the degree to which existing debt has been termed out and locked into historically negative real rates. For consumers, who account for twothirds of the economy, labor markets are tight and prospects for further wage gains are strong. That means more pent-up demand for the services side of the economy. Housing and infrastructure investment remain robust. Given the Russia/Ukraine conflict, we see increased fiscal spending among NATO members for cybersecurity, satellite communications and green/clean energy, which would reduce dependence on Russian oil and gas. To that end, we expect President Biden’s fiscal plans to be rebooted under the rubric of fortification for the West. Even with deceleration in economic growth and the inflation’s potential to act as a tax on consumers, we see economic growth in the next two years that is well ahead of the average of the last decade.

Bottom Line: The most obvious interpretation of the Russia/Ukraine situation is that extended disruptions to global commodity markets will push inflation higher for longer while economic growth slows as global trade and supply chains remain constrained. Such conditions could lead to stagflation. Some investors’ response is to “hide out” in megacap tech stocks which still dominate the market indexes because "the economy is the market.” The GIC disagrees. In our view, markets are still optimistically priced and need to discount the higher inflation/slower growth scenario because the Fed has little room to depart from their signaled path of tightening policy. This is counter to traditional playbook in which central bankers can respond to supply shocks with monetary accommodation. As for the US economy, we believe it will remain resilient for now and the odds of a recession are low. This creates select opportunities for stock-pickers. It's not a replay of secular stagnation. To the contrary, we see the events in Russia/Ukraine unleashing a new era in massive fiscal investment by the West. This should contribute to what was already expected to be a hotter, albeit shorter, cycle. Watch earnings revisions, real interest rates and inflation breakeven rates, looking for a change in the stagflation trend. Consider selectively snapping up quality companies that have reasonable valuation support. Focus on financials, energy, industrials, health care and consumer services.

Data Benchmarks

Operating Benchmarks Report

This annual report is a unique source of operational benchmarks for manufacturing and channel partners. Prepared annually, the data helps participants understand how operations compare to companies in the same industry of a similar size or nature.

Results provide…

 Critical information for the valuation of a business

 Information necessary for realistic strategic business planning

 Data used to set targets and goals for the corporate management team

Published report includes:

 Manufacturer 5-year trend and Channel Partner 3-year trend (reported separately)

 3-year growth trend for major public industry companies (based on publicly available information)

 Manufacturing data divided into four size categories by sales volume

 Numerical expression of income statement data

 Graphic representation of financial ratios

 Dollar Mean, Company Mean, Minimum, Maximum and Standard Deviation for Gross Profit, Expenses and Operating Income

 Participant Excel file with graphs and aggregated data points from the report. Enter your data into the Excel file to compare your company trend to industry performance.

Annual publication in May/June

Operating Benchmarks Annual Report Contents

Measurement, Control & Automation Industry Public Company Data Trends

List of Participating Companies

General Report Commentary

Manufacturer Companies- Data Reported in Size Categories

Graphic Comparison Two Years and Five Years

Income Statement Comparisons – Two Years

Income Statement Comparisons – Five Years

Income Statement Data Expressed in Dollars

Income Statement Data Expressed as Percentage of Sales

Net Sales (in Dollars) and Gross Profit

Selling, Research & Development, General & Administrative, and Selling Expenses

General & Administrative Expenses and Research & Development Expenses

Research & Development (in Dollars) and Income from Operations

Fixed Asset Turnover and Asset Turnover

Inventory Turnover and Collection Period

Current Ratio and Direct Material Purchased

Direct Labor Payroll and Factory Burden

Capital Expenditures (in Dollars) and Net Sales per Employee

Gross Margin per Employee

Additional Calculations Definitions

$ Mean, Company Mean, Minimum, Maximum and Standard Deviation by Group

Manufacturers’ Representatives and Distributor Benchmarks

Graphic Comparison Two Years and Three Years

Income Statement Comparison – Two and Three Years

Income Statement Data Expressed in Dollars and Percent of Sales

Sales (In Dollars) and Total Commissions

Commissions and Gross Margin

Selling and General & Administrative and Selling Expense

General & Administrative Expenses and Income from Operations

Income Before Taxes and Pre-Tax Return on Assets

Asset Turnover and Inventory Turnover

Collection Period Accounts Receivable and Collection Period Commissions

Current Ratios and Sales to End-User Per Employee

Gross Margin per Employee and Allocation of Payroll

Capital Expenditures

Additional Calculations Definitions

$ Mean, Company Mean, Minimum, Maximum and Standard Deviation

Operating Benchmarks Report Sample Format and Data

SAMPLE FORMAT AND DATA

2 YEAR COMPARISON Expressed as a Percent of Sales

GROSS PROFIT Expressed as a Percentage of Sales

Compensation & Benefits Report

Published annually, the Compensation Report provides comparisons of salaries and incentives for positions unique to the measurement and control and automation industry. Data collection begins in June with a target publication in August. Where possible, data for manufacturer and distributor organizations is reported separately.

Publication includes:

 Compensation Data Benchmarks

o Merit v. General Increase Plan for Exempt & Non-Exempt Employees

o Salary Freeze and Incentive Details

o Overtime Terms

o Turnover, Evaluation & Compensation Adjustments

 Hourly Wage Rate Benchmarks for Regular & Temporary Employees

o Data reported by company size and geographical region

 Quick Reference Summary for all Reported Positions

o Incumbent Count

o Low & High Base Rates

o Weighted & Unweighted Average Base Rate

o Average Total Compensation

 Compensation Details for Reported Job Functions in the Following Categories:

o General Management

o Field Sales & Service

o Technical Marketing & Sales Support

o Product Design & Development

o Manufacturing Engineering

o Software

Biennial Benefits Report

The benefits segment provides benchmarks that allow participants to compare and maintain a competitive compensation package. Published on the even year, this information is essential in retaining a business’s most important asset, the workforce.

 Topics covered:

o Health Insurance

o Dental Care

o Short and Long Term Disability

o Group Life Insurance

o Retirement and Staff Savings Plans

o Benefits Administration and Plan Eligibility

o Work Week and Variations

o Employee leave

o Part-time Employee Benefits

o Other Special Benefits

Hourly Wage Rates - SAMPLE DATA for Regular and Temporary Employees

Regional Sales Manager - SAMPLE DATA

Responsible for the domestic sale of company products in a major single geographic unit reporting to the National Sales/Marketing Executive and with one or more levels of Supervisory Managers reporting.

Position Summary Data

Monthly Booking Trends

The Bookings report is an accurate barometer of business activity provided to participants monthly. This is the only virtually instant trend index you can obtain covering providers of process controls, measurement and analysis instrumentation, factory automation systems and software.

Manufacturing Report:

 Aggregated totals for domestic & export bookings (Canada and Rest of the World)

 13-month trend reported separately for companies under and over $50 million in sales

Channel Partner Report:

 Aggregated totals for domestic bookings

 13-month trend line with comparison to open quote totals

All Reports Include:

 Executive summary with aggregated data for all participants

 Tables and detailed graphical trends for reporting groups

 3/12 Rate-of-Change data to compare current data to the same period one year ago

 12/12 Rate-of-Change data to remove seasonal variation and derive the underlying cyclical trend

 Business Cycle Analysis which provides a forward look into a 3-6 month period

 Interactive Excel workbook for tracking individual performance against that of the group

Published by the 25th of the month.

Executive Summary Aggregated Group Bookings

Note: New participation base, all historical data has been restated.

Global Bookings Total

Global bookings (Domestic + Export bookings for all report participants regardless of company size) for January 2019 were up 15.8% compared to December 2018 for a total of $219,284,708.

Domestic Bookings Trends - $ Millions

Domestic aggregated bookings increased in January to $184,536,087, however the quarterly and annual rates of change continue to decline. While domestic bookings are above year ago levels, they are slowing which suggests the continuation of Phase C or cautionary growth.

Overall, aggregated domestic bookings increased 15.5% to a total of $184,536,087 when compared to December 2018. When compared to the same month oneyear ago, domestic bookings decreased 9.5%.

Total

Bookings for January 2019

Total Domestic Bookings for February 2018 - January 2019 (12 months)

Export Bookings Trends - $ Millions

Aggregated exports increased in January to $34,748,620. However, the 3/12 and 12/12 rates-of-change continue to decline below year-ago levels and remain in Phase D or Recession for the third consecutive month. The 3/12 (quarterly) rate-of-change should be monitored closely for signs of improvement.

Overall Export bookings increased 17.2% when compared to December 2018 for an aggregated total of $34,748,620. However, when compared to this same period a year-ago, export bookings decreased 6.6%.

Total Direct Export Bookings January 2019

Total Direct Export Bookings February 2018 - January 2019 (12 months) Total Direct Export Bookings to Canada

Direct Export Bookings to the Rest of the World

Under $50 Million Bookings Results

Note: New participation base, all historical data has been restated.

Domestic bookings increased 6.3% from December 2018. When compared to January 2018, bookings decreased 6.0%. The 12month trailing average decreased slightly by 0.5% when compared to December 2018.

Export bookings increased 26.6% from December 2018. When compared to January 2018, exports increased 0.6%. The 12-month trailing average also remained flat.

Over $50 Million Bookings Results

Note: Data labels added to domestic and export "bars" indicate aggregated dollar volume for the group.

Domestic bookings increased 18.9% from December 2018. When compared to January 2018, bookings decreased 10.6%. The 12month trailing average decreased 1.0% when compared to December 2018.

Export bookings increased 11.6% from December 2018. When compared to January 2018, exports decreased 11.0%. The 12month trailing average also decreased 1.0% when compared to December 2018.

Quarterly Product and Industry Trends

These reports are a reliable source of product and industry trends not available from any other source for providers of process controls, measurement and analysis instrumentation, factory automation systems and software.

Publications Include:

 8 quarter trend for 55 products in 12 major categories (Product Report Only)

 8 quarter trend for 30 end-user industries (Industry Report Only)

 Data reported is booked in the US or Canada for use in the US or Canada

 Linear trend line analyzes bookings as reported and shows the rate of increase or decrease over the reporting period

 Rate-of-Change data illustrates the seasonal changes inherent to the data series and removes seasonal variation in order to derive the underlying cyclical trend

 Business cycle analysis for each product category and industry where sufficient data is available

Reports are published 45 days after the close of the quarter. Companies may elect to participate in one or both reports as appropriate.

Product Report Instrument Categories

 Pressure Instrumentation

 Temperature Instrumentation

 Volumetric Flowmeters

 Mass Flowmeters

 Electronic Level Instrumentation

 Mechanical Level Instrumentation

 Analytical and Specialty Measurement

Manufacturing

 Food & Beverage

 Textiles

 Lumber

 Paper

 Industrial Chemicals

 Pharmaceuticals

 Petroleum Products

 Rubber & Plastics

Mining

 Mining

Transportation and Utilities

 Pipelines

 Utilities

 Nuclear

Other

 All Resale Orders/OEM

 Trade, Financial & Services

 Pneumatic/Mechanical Products

 Display & Control Systems and Software

 Electronic Display and Control Products

 Final Control Devices

 Other Bookings Category

 Summary All Products

Industry Report Categories

 Stone/Clay/Cement/Glass Products

 Metal Manufacturing

 Fabricated Metal Products

 Machinery

 Electrical/Electronic Equipment

 Transportation

 Aerospace

 Instruments

 Oil & Gas Extraction

 Natural Gas

 Water Supply & Irrigation

 Sanitary Services

 All Other Industries

 Order Where Ultimate User is Unknown

Quarterly Report Format Sample

Some historical data has been restated by report participants during this quarter.

Phase B or "Accelerating Growth". Annual sales are above year-ago levels and are growing. Phase C or "Growth (Caution) ". Annual sales are above year-ago levels but the rate of growth is slowing.

Summary All Industry Segments

Summary All Industry Segments

Category Comments:

*The data represented is calculated as a quarter over quarter change relative to the total bookings as reported by MCAA participants. 2Q17 data is calculated from the previous quarter. Although 1Q17 is not reported, the data point is historical for all participants.

*The linear trend line analyzes bookings as reported and shows the rate of increase or decrease over the 8 quarter period.

*3/12 Rate of Change illustrates the seasonal changes inherent to the data series.

*12/12 Rate of Change removes seasonal variation in order to derive the underlying cyclical trend.

*Overall bookings are still above year-ago levels but the rate of growth is beginning to slow. This aligns with the 3/12 leading indicator's downward trend since peaking in 3Q18.

Specialty Resources

Customer Satisfaction

The Customer Satisfaction program is an efficient way to gain valuable feedback from those that matter most…customers!

Surveys launch in January of each year with results available by the end of February. Need a different schedule? Try the on demand option. This allows participants to survey customers on a custom schedule.

When published, participants receive a custom report with individual results. They also receive aggregated benchmarks for the reporting population. This is the report component that sets the MCAA program apart from any other. The aggregated comparative data (aggregated for all participants) allows the reader to put data into context. In doing so, report participants can see where they stack up against the competition.

Why Participate?

 Survey options for both manufacturer and channel members

 Real time customer feedback in a matter of weeks

 Add 5 custom questions to your survey

 Survey one customer or channel segment at no charge - additional segments are $200/report

 Program satisfies ISO Certification requirements

Sample Customer Survey Results Format

Key Metrics Report Sample Format Customer Satisfaction Survey

Customer Satisfaction Metrics Participant Comparison SAMPLE

Specialty Benchmark Surveys

Benchmark surveys help address specific concerns or business practices. Whenever there is an operational or management issue for which industry peer feedback would be beneficial, we can help. Our staff develops and distributes surveys then provides aggregated reports within 15-20 days of the survey launch.

Survey Guidelines:

 Ten (10) questions or less

 Yes/No or multiple-choice format suggested for the best response rate

 Member provides base questions to ensure the survey meets informational needs

 Surveys deploy online

Recent Benchmark topics include:

 Supply Chain Impacts

 Purchase Order Best Practices

 Freight Surcharges

 E-Business

 Digital & Social Marketing Comparison

 Product Differentiation & Customer Engagement

 Sales Tool Communication

 Credit Card Processing

 Lead Generation

 Website Analytics

SAMPLE BENCHMARKS

This survey was conducted to explore the current impact of supply chain challenges amongst manufacturing members. Aggregated results from forty-three (43) manufacturers are presented in the results below.

Are you experiencing supply chain issues?

Which geographic location is experiencing the greatest impact?

How are current supply chain issues affecting delivery to your customers?

Additional comments regarding delays:

 The range is 3 days to 2 weeks.

 From 2 weeks to 4 months.

 Varies from 2 to 12 weeks depending on missing components or outside process.

 We have built up inventories to hit target fill-rates.

 Some electronics are delayed a year or morel

 Current deliveries not affected, but we are scrambling to stay ahead of delays and shortages

 It is inconsistent. Normal delivery can move to shipment delays overnight.

 16 week delays on some items. Some parts are further complicated by logistics like shipping containers from Asia that have stretched transit times from 5 weeks to 12 weeks.

 We have found work arounds at our expense to delay most orders less than a week. The expense comes out of margin.

Partner Search

Partner Search is your 24/7 access point to new business partners. With a few clicks, members can search for MCAA Channel Partners by territory and/or principals. Results can be downloaded as a PDF and will include contact information, website, territory list, and principal list for each company that matches your search criteria. You have unlimited search opportunities through this exclusive member resource.

Search Options:

 US Territories (50 states)

 Canada & Mexico Territories

 International Territories

Search Results Include:

 Company Name

 City/State

 Telephone number

 Email Address

 Website

 Territory and Principal Summary

Video Demonstration available on: https://themcaa.org/member-benefits/partner-search/

Training & Development

The MCAA Learning Center

The MCAA Learning Center is designed to provide a high-level understanding of industry and technology basics for measurement, control, automation and instrumentation professionals. This online training platform allows members to enroll their teams to improve their knowledge of a variety of technologies and customer industries quickly and efficiently. This member resource is included in all memberships at no additional charge.

Each course includes a 20-40 minute presentation and study guide. At the end of each course, students will take an assessment and, with a passing score of 80%, will receive a certificate of completion.

Classrooms and Current Courses include:

Measurement & Instrumentation

ü Introduction to Industrial Measurement & Instrumentation

ü Basics of Continuous Flow Measurement & Instrumentation (4-part series)

ü Basics of Industrial Temperature Measurement & Instrumentation

ü Basics of Industrial Pressure Measurement & Instrumentation

ü Basics of Level Measurement & Instrumentation

ü Basics of Industrial Liquid Analytical Measurement & Instrumentation

Control & Automation

ü Introduction to Industrial Process Control & Automation

Communication & Protocols

ü Basics of Wireless Communication

Sales & Marketing

ü Features recordings from our digital marketing & social selling coaching series.

Additional classrooms and courses will be developed over time. For additional information, visit TheMCAA-Learning.org.

Special thanks to our member content contributors!

Preferred Partner Services

MCAA Career Center

The MCAA Career Center is the premier online career resource connecting employers to the measurement, control and automation industry’s most talented professionals. Nearly 15,000 job seekers in the industry will see your job postings as the MCAA Career Center is part of the Engineering & Science Career Network (ESCN).

The Career Center, powered by Naylor Association Solutions, offers the most targeted advertising for measurement, control and automation industry job openings or internships, with a concentration on management-level positions. To get started, login to the MCAA member portal and choose Tools & Resources from the menu.

Highlights:

 Set the skills criteria and let the resumes come to you

 Complete an Employer-Profile to promote your company’s culture, benefits and why it’s a great place to work

 Save and manage applicants and resumes

 Free postings for internships

 Quick and easy job posting

 Quality candidates

 Online reports provide you with job activity statistics

 Simple pricing options

 Special rates for MCAA member companies

Job Categories

 Administrative/Clerical

 Customer Service

 Engineering

 Field Service & Technical Support

 Finance/Accounting

 General Management

 Human Resources/Personnel

 Information Technology/Networks

 Manufacturing/Production/Quality Assurance

 Marketing/PR

 Sales/Business Development

 Skilled Labor

 Many Others

Sales Leads Program

A subscription to D&B Hoovers allows members to empower their sales teams with an outstanding sales tool. Through D&B Hoovers, sales professionals can access information on over 85 million companies. Best of all, through the power of group purchase, MCAA members save thousands of dollars on annual subscriptions.

As a subscriber, users can quickly and efficiently search millions of records to build targeted lists of companies, people, industry segments, and much more. Annual enrollment begins in July, and subscriptions are activated at the end of August.

 Target more strategically – New search and list capability help to quickly build pipelines. In addition, the dynamic SmartLists tool provides automatic notification when a new company or contact matches list criteria.

 Informed Conversations – Access more in-depth intelligence on companies and contacts including technology data and triggers that help you better engage and personalize your sales pitch.

 Enhanced Sales Productivity – Customizable desktop and notification options make it easy to monitor prospect and account activity.

 Increase Sales and Marketing Alignment – Seamlessly integrate D&B Hoovers with your CRM and Marketing Automation Platforms to ensure that the same data is shared across your team.

Please note, due to restrictions imposed by D&B, we cannot add subscriptions outside of the enrollment period. In addition, if you have an active Hoovers subscription, D&B will not allow you to participate in the group program, nor will they match the discounted volume price.

TForce Freight Discount

TForce Freight (formerly UPS Freight) is pleased to partner with MCAA to offer the MCAA/TForce Freight Savings Program, a member benefit program that helps you save time and money. As an enrolled member, you are eligible for exclusive discounts on a wide range of TForce Freight services. In addition, you’ll also receive exclusive support and shipping advice from our dedicated association team.

Benefits Include:

 Exclusive savings on qualifying LTL freight shipments. Whether you’re shipping across the border or down the road, members immediately save on all LTL freight shipments.

 Order, ship and track with ease. TForce shipping platforms allow you to keep track of your shipments easily ensuring your shipments arrive on time.

 TForce customer service team is ready to help. Their dedicated customer service team is happy to walk you through the entire process, including a free quote.

MCAA Members can get started by contacting the UPS Freight Association Team at 866.443.9303 or visit associations@tforcefreight.com

Thank you for reviewing the benefits and resource guide. I hope the information and sample data demonstrated the value of the tools available to you and your team through an MCAA membership.

If you have questions, or are ready to join this outstanding organization, please let me know.

Best Regards,

Teresa L. Sebring President

757.258.3100 X1001

Sebring@themcaa.org

www.themcaa.org