NAPM report shows manufacturing growth moderating

The most recent "Report on Business" from the National Association of Purchasing Management (NAPM) showed economic activity in the nation's manufacturing sector growing at a slower rate in May than in April.

07/01/1998


The most recent "Report on Business" from the National Association of Purchasing Management (NAPM) showed economic activity in the nation's manufacturing sector growing at a slower rate in May than in April. Nevertheless, the Purchasing Managers' Index (PMI) has now been above the "50" mark that represents an expanding manufacturing sector for 22 consecutive months. The PMI fell to 51.4 in May from 52.9 in April. Still, of the 20 manufacturing industry sectors surveyed, 14 reported that conditions had improved over the month.

The NAPM monthly report also provides valuable information on supply and price conditions for major commodities purchased by manufacturers. Steel plate was the only commodity reported to be in short supply. Commodities with the longest running reports of price increases were corrugated containers, caustic soda, paper, and steel. A larger group of commodities was reported by purchasing managers to be lower in price in May than at the beginning of the year, including aluminum, copper, plastic resins, natural gas, methanol, and semiconductors.

In summary, the May NAPM "Report on Business" painted a picture of a healthy economy that is continuing to grow, but at a more moderate clip than the 4.8% gain in GDP registered over the first quarter of 1998.

Analysts at NAPM who study the historical relationship between PMI movements and trends in overall economic growth say that if the May PMI of 51.4 turned out to be the annual average for 1998, this would correspond to a 2.7% increase in real GDP -- a number consistent with the expectation that most economists have for the U.S. economy over the balance of this year.





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.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
A new approach to the Skills Gap; Community colleges may hold the key for manufacturing; 2017 Engineering Leaders Under 40
Doubling down on digital manufacturing; Data driving predictive maintenance; Electric motors and generators; Rewarding operational improvement
2017 Lubrication Guide; Software tools; Microgrids and energy strategies; Use robots effectively
The cloud, mobility, and remote operations; SCADA and contextual mobility; Custom UPS empowering a secure pipeline
Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Power system design for high-performance buildings; mitigating arc flash hazards
Research team developing Tesla coil designs; Implementing wireless process sensing
Commissioning electrical systems; Designing emergency and standby generator systems; Paralleling switchgear generator systems

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.
The maintenance journey has been a long, slow trek for most manufacturers and has gone from preventive maintenance to predictive maintenance.
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me