IHS Inc. is a company based in Douglas County, Colorado, United States.IHS provides information, expertise and analysis to support the decision-making process of businesses and governments in key capital-intensive industries, such as aerospace, defense and security; automotive; chemical; energy; maritime and trade; and technology industries. IHS also provides expertise in economics, country risk, engineering and overall operational excellence. IHS has grown significantly over the past decade, through acquisitions that include the following: Jane's Information Group, Cambridge Energy Research Associates , Global Insight, and John S. Herold, Inc. In 2010, IHS purchased iSuppli and Screen Digest and, in 2012, Displaybank and IMS Research; these acquisitions form the foundation of its Technology offerings. In 2013, IHS acquired Polk and Carfax, which added to its Automotive offerings. . Wikipedia.
News Article | March 6, 2015
Hidden deep in the recesses of the February jobs report are hints of optimism for anyone counting on take-home pay to pick up. To recap: The biggest disappointment in an otherwise impressive jobs report this morning was almost nonexistent wage growth — a 0.1 percent increase in average hourly earnings from January. That was a 2 percent gain from a year earlier, matching the dismal average since the last recession ended. That might be about to change. Employers typically start to feel the pressure to boost paychecks when workers don't feel the need to cling to their jobs, and the unemployed aren't so discouraged on their employment search that they stop looking. And February's jobs figures paint that very picture. First, take a look at the number of employed Americans who voluntarily left their jobs, without the intent to look for a new one. About 4.5 million did this last month, marking the second-highest tally in records dating to 1990: While it can be difficult to pinpoint exactly why all these Americans left the labor force (retirements and people preferring not to work are two reasons), we can be assured that when they're doing so in this kind of labor market, it's good news, said Nariman Behravesh, chief economist at IHS Inc. in Lexington, Massachusetts. This "labor market flow," as economists like to label it, also frees up positions for others. "The good news is that you've got jobs growing and you've got some people employed leaving the workforce, so that clearly creates a lot of opportunities for people looking for jobs," Behravesh said. At the same time, the data show there are fewer jobless Americans who are giving up on their job search. Just 2.3 million unemployed were in this category last month, hovering near a low since this expansion started in June 2009. See the decline in discouragement: So how do these come back to wage growth? The transitions among workers reflect a labor market that's absorbing slack, signaling an economy moving toward a point where most who want jobs have them. In fact, two measures that have been slow to move toward pre-recession norms improved last month: underemployment (a gauge that includes part-time workers who wish they were full-time) and long-term unemployment. When the economy absorbs those excess workers, employers raise wages to help attract workers and retain the ones they have. This morning's report gives Labor Secretary Tom Perez hope that the wage growth is coming. Workers demonstrating the confidence to move from jobs or stay in the labor force while unemployed are spurring a "virtuous cycle," Perez said in a phone interview after the report's release. "As labor markets tighten, that's one of the best ways to put upward pressure on wages."
News Article | January 30, 2015
American consumers stepped on the gas in the fourth quarter, just as companies hit the brakes. The result was that while the world’s largest economy grew at a 2.6 percent annualized rate, the gain fell short of the median forecast of economists surveyed by Bloomberg and was well below the 5 percent pace in the third quarter, Commerce Department figures showed Friday in Washington. Cheaper gasoline and the largest employment increase since 1999 are boosting household confidence, increasing the odds that consumer spending can sustain gains following its biggest advance in almost nine years. At the same time, business investment is cooling as companies such as Caterpillar Inc. say plunging oil prices, a rising dollar and slowing growth abroad hurt sales globally. “The U.S. economy is very solid fundamentally because it’s the consumer that’s driving this,” said Nariman Behravesh, chief economist at IHS Inc. in Lexington, Massachusetts, who is among the most accurate GDP forecasters over the past two years, according to data compiled by Bloomberg. “You have some negatives too, but by and large we’ll have solid underlying growth.” Stocks fell as the slowdown in growth overshadowed a rally in energy shares sparked by a surge in the price of crude. The Standard & Poor’s 500 Index dropped 1.3 percent to 1,994.99 at the close in New York. The yield on the 10-year Treasury note declined to 1.64 percent compared with 1.75 percent on Thursday. The median forecast of 85 economists surveyed by Bloomberg called for a 3 percent advance in U.S. GDP, the value of all goods and services produced. Estimates ranged from 1.8 percent to 3.6 percent. For all of 2014, the economy grew 2.4 percent from the year before, the biggest advance since 2010, following a 2.2 percent expansion in 2013. “There are reasons to be optimistic and to expect a further pick-up in 2015,” said Aneta Markowska, chief economist at Societe Generale in New York. “Consumption will continue to be supported by the labor market, by the boost to disposable income coming from lower oil prices. Housing is another area that’s just due for a bounce-back. Chances are we’re going to see some acceleration next year.” Consumer spending, which accounts for almost 70 percent of the economy, climbed at a 4.3 percent rate, more than projected and the biggest gain since the first quarter of 2006. Households splurged on clothing, recreation and going out for a spin in the car as sales of gasoline climbed even after taking into account the drop in prices. The expansion last quarter was “all about a solid consumer performance,” said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, who correctly forecast the fourth-quarter growth rate. Another report showed American consumer confidence reached an 11-year high in January as a strengthening labor market and plunging gas prices kept households looking on the bright side. The University of Michigan final consumer sentiment index rose to 98.1, the highest since January 2004, from 93.6 in December. The survey showed Americans were the most upbeat about the economic outlook in a decade thanks to dollars saved at the gas pump and better employment prospects in a healing job market. “Consumer optimism did not waver in late January,” Richard Curtin, director of the Michigan Survey of Consumers, said in a statement. “The improvement has been due to more favorable trends in income and employment as well as the more recent declines in gas prices.” Companies aren’t as enthusiastic. Business investment increased at a 2.3 percent annualized rate in the fourth quarter, compared with a 7.7 percent gain in the third quarter. Corporate spending on equipment dropped at a 1.9 percent pace, the biggest decline since the second quarter of 2009. Machinery manufacturer Caterpillar said lower oil and gas prices are “without a doubt” the biggest reason it’s expecting sales to decline to $50 billion in 2015, Michael DeWalt, vice president of finance services for the Peoria, Illinois-based machinery maker, said on a Jan. 27 conference call. The median estimate from analysts had projected revenue of $55.2 billion. “With oil this low, we expect substantial reductions” in spending by fuel producers, he said. Not all businesses will lose out. Low oil prices are strengthening the outlook for companies like Honeywell International Inc., a worldwide operator in industries from aerospace to energy. The Morris, New Jersey-based manufacturer reported better-than-expected fourth-quarter earnings last week, based on strong sales of security systems and thermostats. The rout in oil prices had little impact on the company’s energy services, executives said. “For the first time in five years, I’m actually a little more bullish on where the global economy is going than economic forecasters are,” Dave Cote, the company’s chief executive officer, said on a Jan. 23 earnings call. The “impact to lower oil prices is causing this major redistribution from oil-producing to oil-using economies, and those oil-using economies are quite large,” Cote said. A widening trade deficit as imports climbed three times faster than exports, and a slump in defense spending following a third-quarter surge, held back growth last quarter, Friday’s report showed. Trade is the one area that will probably continue to restrain the expansion as exports suffer from slowing global growth and a rising dollar while imports are likely to jump as consumer spending firms, said IHS’s Behravesh. Federal Reserve policy makers are monitoring economic progress as they weigh their first interest rate increase since 2006. In a statement following a meeting this week, the central bank acknowledged global risks, saying that it will take into account readings on “international developments” as it decides how long to keep rates low. Federal Reserve Bank of St. Louis President James Bullard said in an interview Friday in New York that investors are wrong to expect the Fed to postpone an interest-rate increase beyond midyear, with the U.S. economy leading global growth and unemployment dropping. “Zero is not the right number for this economy,” Bullard said in a reference to the benchmark federal funds rate, which has been kept near that level since December 2008. “It is hard to rationalize a zero policy rate” because the economy has “a lot of momentum.” Employment gains are helping boost worker pay. After-tax personal income adjusted for inflation climbed at a 3.8 percent annualized rate in the fourth quarter, the most since mid-2013, the Commerce Department’s GDP report showed. One reason earnings are growing more quickly is that inflation is tame. The price index tied to consumer spending dropped at a 0.5 percent rate in the fourth quarter, the most in almost six years. Excluding food and fuel, it rose 1.1 percent, the smallest gain since the second quarter of 2013. Fed policy makers and economists alike are watching for signs that the improved labor market is translating into wage gains, which have been slow to materialize throughout the recovery. The employment cost index, which includes wages and benefits, climbed 0.6 percent in the last three months of 2014 compared with a 0.7 percent gain in the previous three months, a Labor Department report showed Friday.
News Article | July 2, 2015
The size of the labor force tanked last month, helping to make for a very mixed June jobs report. Though payrolls climbed at a healthy clip, some 432,000 people left the workforce, Labor Department data showed. That sent the participation rate — which tracks the share of working-age people who are either employed or looking for work — to 62.6 percent, the lowest level since October 1977. While the rate has been trending down ever since baby boomers started retiring in droves, the decrease last month was the sharpest in more than a year. The decline was made all the more surprising by the fact that June tends to be a month where the U.S. sees loads of people moving into the labor force — think teenagers snagging lifeguard gigs, recent college graduates scouring the internet for job postings and teachers taking up summer work. That "just did not happen," said Karen Kosanovich, an economist at the Bureau of Labor Statistics in Washington. In the last decade, an average 1.35 million workers have entered the labor force every June on a not seasonally adjusted basis. This year, the gain was 564,000. That translates into a decline for the seasonally adjusted data, since the monthly increase was much less than it usually is. There could be a couple explanations for this. The BLS gets its labor force data from Current Population Survey, in which households say whether they were employed, unemployed and looking for work, or neither during the Sunday-to-Sunday period that includes the 12th day of the month. Last month, this reference period occurred earlier than normal, and as a result a smaller share of the labor force gains were captured, according to Betsey Stevenson, a member of the President Barack Obama’s Council of Economic Advisers. This discrepancy could account for 500,000 people missing from the labor force, she wrote in a blog post. Economists are also considering whether this year's severe winter weather is to blame for yet another disappointing data point. A high number of snow days could have extended the school year in some locations, limiting the normal flow of people into the workforce. "If that hypothesis is true, then we could see a substantial seasonally adjusted pop in labor force participation in July and likely a rebound in the unemployment rate,'' Stephen Stanley, chief economist at Amherst Pierpont Securities LLC, wrote in a note to clients. "I have my doubts about this hypothesis, but it makes more sense than to believe that the labor force collapsed in June because potential workers felt that there were no job prospects." Certain demographic groups also showed significant drops. Some 402,000 men left the labor force on a seasonally adjusted basis, accounting for 93 percent of the overall decline. Looking at age groups, the labor force participation rate for workers 45 to 54 years old declined to 79.2 percent, the lowest since December 2013, from 79.6 percent. For 16- to 19-year-olds, it declined to 34.3 percent from 35 percent. When there's no one clear cause as to what's responsible for labor force fluctuations, it's better to wait for more data before making a call, BLS's Kosanovich said. And parsing this trend will be increasingly important in the months to come, as Federal Reserve policy makers try to time their first interest rate increase since 2006. Gauging how much room for improvement is left in the labor force will be key to that decision. Combined with the weakness in wage growth, the low labor force participation rate "will bolster the arguments of those on the Federal Open Market Committee who think that there is still a lot of slack in the labor market," Nariman Behravesh, chief economist at IHS Inc. in Lexington, Massachusetts, wrote in a note to clients.
News Article | January 6, 2016
The overall merger and acquisition (M&A) deal count in the global upstream business plunged in 2015 as the weakness and volatility in crude oil prices made it difficult for buyers and sellers to achieve consensus on value and outlook, according to analysis by IHS Inc.
IHS Inc., Englewood, Colo., reports that the emerging market for silicon carbide and gallium nitride power semiconductors is forecast to pass the $1 billion mark in five years, energized by demand from hybrid and electric vehicles, power supplies, and photovoltaic inverters. Worldwide revenue from sales of SiC and GaN power semiconductors is projected to rise to $3.7 billion in 2025, up from just $210 million in 2015. Market revenue is also expected to rise with double digit growth annually for the next decade. SiC Schottky diodes have been on the market for more than ten years, with SiC metal-oxide semiconductor field-effect transistors, junction-gate field-effect transistors, and bipolar junction transistors appearing in recent years. SiC MOSFETs are proving very popular among manufacturers, with several companies already offering them, and more expected in the coming year. The introduction of 900-volt SiC MOSFETs, priced to compete with silicon SuperJunction MOSFETs, as well as increased competition among suppliers, forced average prices to fall in 2015. "Declining prices will spur faster adoption of the technology," said Richard Eden, senior market analyst for power semiconductor discretes and modules at IHS Technology. "In contrast, GaN power transistors and GaN modules have only just recently appeared in the market. GaN is a wide bandgap material offering similar performance benefits to SiC, but with greater cost-reduction potential. This price and performance advantage is possible because GaN power devices can be grown on silicon substrates that are larger and less expensive than SiC. Although GaN transistors are now entering the market, the development of GaN Schottky diodes has virtually stopped." By 2020, GaN-on-silicon devices are expected to achieve price parity with — and the same superior performance as — silicon MOSFETs and insulated-gate bipolar transistors (IGBTs). When this benchmark is reached, the GaN power market is expected to surpass $600 million in 2025. In contrast, the more established SiC power market — mainly consisting of SiC power modules — will hit $3 billion in the same time period.