MAPI reports show growing pressure, but steady growth

Two reports released by the Manufacturers Alliance/MAPI show the manufacturing sector continues its slow growth, but that continuing pressures of government regulation and taxes are proving a drag on such growth. The quarterly Manufacturers Alliance/MAPI Survey on the Business Outlook in September showed a composite index of 66, down from the previous quarter total of 68, but a figure the repor...

11/01/2005


Two reports released by the Manufacturers Alliance/MAPI show the manufacturing sector continues its slow growth, but that continuing pressures of government regulation and taxes are proving a drag on such growth.

The quarterly Manufacturers Alliance/MAPI Survey on the Business Outlook in September showed a composite index of 66, down from the previous quarter total of 68, but a figure the report says is still historically high. A composite business index above 50 indicates that overall manufacturing activity is expected to increase over the next three months.

While still maintaining an optimistic view, the current index shows a marginal loss of momentum for a sector beset by a host of recent challenges, including natural disasters and rising energy costs. The current reading is the lowest since a composite index of 60 in June 2003, covering nine surveys, and down from the all-time high of 80 in June 2004.

"Although the composite and most individual indexes slipped from their June levels, they remain at relatively high levels and point toward expansion over the next three months and in 2006 as well," said Don Norman, Ph.D., Manufacturers Alliance/MAPI Economist and survey coordinator. "That there was some slippage in the indexes is not surprising given that the responses to this quarter's survey were made after Hurricane Katrina and the ensuing spike in oil and natural gas prices. What is significant is that the senior financial executives participating in the survey continue to be optimistic regarding the outlook for the manufacturing sector."

In another study from by the Manufacturing Institute and the Manufacturers Alliance/MAPI, manufacturing profits in five key sectors were 67% lower than they would have been from 2000 to 2003 because of adverse structural costs.

"Profit rates for durable goods and chemical manufacturing continue to be dramatically lower than their historic norm, primarily because of escalating domestic costs and intense international competition," said Jerry Jasinowski, president of the Manufacturing Institute.





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
2016 Product of the Year; Diagnose bearing failures; Asset performance management; Testing dust collector performance measures
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me