📛📛📛Economic activity in the US manufacturing sector 𝙘𝙤𝙣𝙩𝙧𝙖𝙘𝙩𝙚𝙙 𝙞𝙣 𝘼𝙥𝙧𝙞𝙡 𝙛𝙤𝙧 𝙩𝙝𝙚 𝙨𝙞𝙭𝙩𝙝 𝙘𝙤𝙣𝙨𝙚𝙘𝙪𝙩𝙞𝙫𝙚 𝙢𝙤𝙣𝙩𝙝 following a 28-month period of growth according to the Institute for Supply Management. 📛📛📛
Here are some highlights from that report that caught my attention!
✅ "The April Manufacturing PMI® registered 47.1 percent, 0.8 percentage point higher than the 46.3 percent recorded in March indicating slower contraction.”
✅ And the Buying Policy reports: "the average commitment lead time for Capital Expenditures in April was 170 days. Average lead time for Production Materials was 90 days. Average lead time for Maintenance, Repair and Operating (MRO) Supplies was 46 days.
𝘽𝙪𝙩 𝙩𝙝𝙚 𝙩𝙝𝙚𝙢𝙚 𝙄’𝙙 𝙨𝙪𝙜𝙜𝙚𝙨𝙩 𝙮𝙤𝙪 𝙩𝙖𝙠𝙚 𝙖𝙬𝙖𝙮 𝙞𝙨 “𝙨𝙢𝙖𝙧𝙩 𝙤𝙥𝙥𝙤𝙧𝙩𝙪𝙣𝙞𝙩𝙞𝙚𝙨.” If your organization can be agile & flexible, there is optimism to be had. While the overall numbers are showing contraction, when you read the report there are strategic opportunities for growth.
Here are two quotes from the report:
✅ "Panelists' comments registered a 1-to-1 ratio regarding optimism for future growth and continuing near-term demand declines."
✅ "We seem to be in a season of contradictions. Business is slowing, but in some ways, it isn't. Prices for some commodities are stabilizing, but not for others. Some product shortages are over, others aren't. Trucking is more plentiful, except when it isn't. There's uncertainty one day, but not the next. The next couple of months should provide answers - or not. It's hard to make projections at the moment."
So here are the paths to growth I saw in the report:
✅ On the PMI: The five manufacturing industries that reported growth in April are: Printing & Related Support Activities; Apparel, Leather & Allied Products; Petroleum & Coal Products; Fabricated Metal Products; and Transportation Equipment.
✅ On the Production Index: "Of the top six industries, four - Transportation Equipment; Food, Beverage & Tobacco Products; Machinery; and Computer & Electronic Products - expanded production in April.”
✅ Employment Index: Registered 50.2% is still growing, backed by BLS data. With Transportation equipment, machinery & chemical products expanding. And Turnover rates are declining. If you can link your product to worker productivity, there is opportunity!
✅ There are multiple commodities in short supply. Electrical & Electronic components, labor, plastic resins, semiconductors. If your company can show an ability to deliver, you can capture market share in these spaces! And I’ve seen some companies do just this!
Where are you seeing paths to growth in this overall flat manufacturing market environment? I’d love to hear your thoughts in the comments.
Until next time, ask yourself:
What WILL i AUTOMATE next?
WILL HEALY III
Universal Robots | AMIP Cincy
#WILLAUTOMATE
#manufacturing #economy #recession2023 #manufacturingindustry #jobs #industrialproduction #business
2 окт 2024
