The team at Delek US Holdings told investors and analysts early this month they have started work on $21 million worth of "quick-hit" capital projects that are projected to return 50 percent more than that per year. The appendix to their updated investor presentation outlines where else they plan to spend money in 2012.
Franklin-based Prime Colorants is investing $1 million in a range of equipment that will boost its production capacity by 2.5 million pounds. The move has execs at the maker of color concentrates for the automotive and consumer sectors thinking about their space needs.
Mike Mandel says the most striking takeaway from the 1.8 percent GDP growth in the first quarter is that businesses simply aren't investing much in new equipment. The gap to trend there is more than double that of consumer spending.
"The CFO optimism index has proven to be an accurate predictor of future economic performance," said Julia Homer, executive vice president for content at CFO Publishing LLC. "Therefore, this dramatic drop in optimism bodes poorly for the economic outlook. Half of CFOs say there is only a six-month window -- and another one-fourth believe it's a 12-month window -- during which they can maintain current levels of business activity without improvement in the overall economy."
Although sales and traffic results softened in May, restaurant operators reported an uptick in capital spending activity. Forty-five percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the past three months, up from 40 percent last month and the highest level in nearly two years.