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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.
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
Full Transcript
- 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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