1. Global Headwinds Challenge U.S. Manufacturing Presentation to the MAPI Sales Team Presented by: Cliff Waldman Director of Economic Studies cwaldman@mapi.net

2. GDP Expenditure Categories Inflation-Adjusted Percent Change 20152016(F)2017(F)2018(F) Gross Domestic Product 2.41.72.62.5 Total Consumption 3.12.72.92.7 Durables 6.04.97.05.6 Nondurables 2.62.32.72.4 Services 2.82.52.3 Nonresidential Fixed Investment 2.80.04.65.4 Equipment 3.10.24.86.3 Information Processing Equipment 4.83.76.37.3 Industrial Equipment 4.72.84.08.1 Transportation Equipment 6.8-1.82.82.6 Intellectual Property Products 5.72.14.64.7 Structures -1.5-3.84.34.4 Residential Fixed Investment 8.99.27.15.6 Exports 1.1-0.23.24.2 Imports 4.91.95.75.8 Federal Government -0.31.21.4-1.2 State & Local Government 1.41.30.91.1 MAPI Economic Forecast F=Forecast Source(s): MAPI Foundation, May 2016 MAPI Forecast: The Era of Sluggish Growth Continues in the U.S.

3. Economic Indicators Percent Change or Level as Specified 20152016(F)2017(F)2018(F) Prices (% change) Consumer Prices 0.11.12.32.4 Excl. Food & Energy 1.82.12.02.1 Producer Prices, Finished Goods -3.3-1.62.8 Energy ($) Imported Crude Oil ($ per barrel) $46.50$36.10$43.60$49.90 Natural Gas Henry Hub Price ($mmbtu) $2.60$2.20$2.70$3.20 Other Key Measures Nonfarm Inventory Change (Billion 2009$) $93$28$37$57 Light Vehicle Sales (Million units) 17.317.818.218.1 Housing Starts (Million units) 1.1071.1671.3711.491 Federal Surplus (NIPA, Billion $) -$592-$635-$733-$845 Current Account Balance (Billion $) -$484-$463-$459-$534 Labor Unemployment Rate (%) 5.34.94.84.9 Payroll Employment (% change) 2.11.91.30.8 Production (% change) Manufacturing (SIC Basis) 0.80.42.52.8 Computers & Electronic Products 2.82.24.14.5 Non-High Tech Manufacturing 0.80.21.52.2 MAPI Economic Forecast F=Forecast Source(s): MAPI Foundation, May 2016 MAPI Forecast: Manufacturing Growth Treading Water in 2016, Moderate Acceleration is Expected for 2017 and 2018

4. Percent Change Industry2015 2016 (F) 2017 (F) 2018 (F)Industry2015 2016 (F) 2017 (F) 2018 (F) Motor Vehicles & Parts64-2HVAC Equipment2-464 Petroleum & Coal Products5321 Textile Product Mills04-2-3 Plastic Products3035 Paints, Soaps, Toiletries & Misc.1211 Logging-233Food1222 Wood Products0343Apparel0-6-2 Furniture & Related Products3322 Pharmaceuticals & Medicines3123 Consumer-Related Manufacturing Production F=Forecast Source: MAPI Foundation, May 2016

5. Percent Change Industry2015 2016 (F) 2017 (F) 2018 (F)Industry2015 2016 (F) 2017 (F) 2018 (F) Electric Lighting Equipment1123 Metalworking Machinery-3-522 Electrical Equipment-5-211 Industrial Machinery9-454 Architec. & Structural Metals-2133 Heavy Duty Trucks11-811 Construction Machinery2-822 Medical Equip. & Supplies633 Engines & Turbines1-1024 Forging & Stamping2-202 Agricultural Equipment-11-12-20 Aerospace Products & Parts0134 Drilling Equipment-13-18410 Ship & Boat Building-2-3-5-4 Investment-Related Manufacturing Production F=Forecast Source: MAPI Foundation, May 2016

6. Percent Change Industry2015 2016 (F) 2017 (F) 2018 (F)Industry2015 2016 (F) 2017 (F) 2018 (F) Paper-2 0 Resins & Synthetic2348 Iron & Steel-12-3-2-3 Organic Chemicals4658 Alumina & Aluminum-42 Inorganic Chemicals0001 Glass433Ag. Chemicals33911 Material Manufacturing Production F=Forecast Source: MAPI Foundation, May 2016