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Econ: What are Producers' Durable Equipment and Structures? 2 Views


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Description:

What are Producers’ Durable Equipment and Structures? Durable equipment and structures include products used that last a long time. So, in the case of many businesses durables include things like machinery and appliances.

Language:
English Language

Transcript

00:00

And finance Allah shmoop what our producers durable equipment and

00:06

structures It sounds like the incredibly literal minded name for

00:11

a farm equipment and barn construction company run by a

00:14

guy named something like Ralph Producer But instead no producers

00:20

Durable equipment and structures refers to a highly specific type

00:23

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

00:26

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

00:28

Durable equipment While manufacturing products often get sorted into two

00:32

main categories durable and nondurable durable goods or those Mento

00:36

last a long time right The usual definition calls for

00:39

an item Mento last at least three years So for

00:42

consumers were talking things like cars and washing machines and

00:46

electric salad spinners and senators Nondurable goods arm or disposable

00:51

Think products like paper cups and toilet paper and odor

00:54

neutralizing shoe inserts You know stuff like that Durable equipment

00:58

equipment meant to last at least three years So now

01:01

the producers part Some manufactured goods are made for regular

01:05

people to buy for use in their day to day

01:07

lives Well that stuff gets the title Consumer goods A

01:11

different category applies to different items made for other companies

01:15

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

01:18

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

01:21

can make five margaritas servings Consumer Good A giant room

01:25

sized blending that that can make five thousand gallons of

01:28

margaritas Producer Good So yeah producers Durable equipment is equipment

01:33

meant to last a very long time and to produce

01:36

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

01:39

other producers at the Oder Neutralizing Shoe Insert factory while

01:43

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

01:46

phony material into you know foot shapes or the giant

01:49

sprayer that sports anti stink anti stink Jews technically onto

01:53

the foot shaped foamy things those are examples of producers

01:57

Durable equipment Now the structures Sparta will structures have to

02:01

do with buildings shockingly like actual structures places people work

02:06

or which get built as part of a factory campus

02:08

right the buildings the offices the gazebos out by the

02:11

tennis courts where the string quartet plays well That last

02:14

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

02:17

world But well it still counts So the producers durable

02:19

equipment and structures refers to business spending on long lasting

02:23

manufacturing equipment or on the physical buildings used by the

02:26

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

02:30

the amount businesses spend on their big ticket equipment or

02:34

on their physical structures The large items in which a

02:37

company has to invest in order to you know do

02:40

what they do While Economist track this number is a

02:42

sign of the health of the manufacturing industry If companies

02:45

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

02:48

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

02:51

Thes purchases often require borrowing Money Cos also need confidence

02:56

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

02:58

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

03:01

their futures So the fact that the firms are making

03:04

the purchases bodes well for the industry as a whole

03:07

and usually where the industry goes so the economy goes

03:10

right On the other hand if companies are reluctant to

03:12

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

03:15

and or the economy It shows a lack of confidence

03:18

when the figures for producers durable equipment instructors go down

03:21

while the economy likely is going to be in trouble

03:24

In the future So the shoe insert company decides to

03:26

ditch its aging anti stink juice sprayer and instead borrow

03:30

money to purchase the brand new Internet enabled A I

03:33

designed texting spurt X nine thousand The move shows up

03:37

as part of the national statistics on producers durable equipment

03:40

and Structures Yeah good thing Good sign for the economy

03:43

Businesses are showing confidence than in the future Or it

03:46

could just indicate that the odor neutralizing company sees ongoing

03:50

demand for its specific product Because feet are well you

03:53

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

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