New orders, employment bolster November PMI

Index at 58.7%, marking 18 straight months of growth for manufacturing.

12/01/2014


With new orders and employment continuing to show strong growth, the monthly PMI Index from the Institute of Supply Management (ISM) continued its high-wire act in November. While the index slipped three-tenths of a point in November, the 58.7% PMI Index reading still is more than 17% above the break-even level of 50% and marks the seventh straight month the index has finished above 55%.

The New Orders Index rose again in November to 66.0%, a two-tenths increase from October. The Employment Index showed growth for the 17th straight month, checking in at 54.9%. As both of these are happening, the Price Index fell to 44.5%, a drop of 9 percentage points from October. The report noted, "This is the first time that raw materials prices have registered a decrease since July 2013 when the Prices Index registered 49%."

"Comments from the panel are upbeat about strong demand and new orders, with some expressing concerns about West Coast port slowdowns and the threat of a potential dock strike," said ISM Manufacturing Business Survey Committee chairman Bradley Holcomb. Otherwise, the manufacturing surge over the past year shows little signs of abating as 2014 comes to a close.

The Institute for Supply Management's PMI Index slipped fractionally to 58.7, marking the seventh straight month the index has finished above 55%. Courtesy: Institute for Supply ManagementAmong the comments:

  • "The holiday season continues to exceed expectations. Customers are generally optimistic for future sales growth." (Food, Beverage & Tobacco Products)
  • "Continued strong demand. Deliveries through the West Coast are delayed due to a number of factors." (Fabricated Metal Products)
  • "We have seen continued growth in transportation equipment. Slowdowns and threats of strike of West Coast longshoreman weigh heavily on U.S. operations." (Transportation Equipment)
  • "Business continues to be stronger than last year." (Furniture & Related Products)
  • "Improvement in defense spending and manufacturing." (Computer & Electronic Products)
  • "We continue to hire people. People are also leaving to take other jobs indicating the job market is starting to improve for manufacturing." (Electrical Equipment, Appliances & Components)
  • "Market has remained strong going into year-end." (Wood Products)
  • "Order intake has been substantial, resulting in a very healthy backlog. The packaging automation requirements in the food and beverage market are robust." (Machinery)

The PMI Index has now stayed above the 50% growth level for 18 straight months, and the index hit the 5 ½-year growth market for overall economic growth. "The past relationship between the PMI and the overall economy indicates that the average PMI for January through November (55.8%) corresponds to a 4.2% increase in real gross domestic product (GDP) on an annualized basis," Holcomb said in a statement. "In addition, if the PMI for November (58.7%) is annualized, it corresponds to a 5.1% increase in real GDP annually."



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.
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.
2017 Lubrication Guide; Software tools; Microgrids and energy strategies; Use robots effectively
Prescriptive maintenance; Hannover Messe 2017 recap; Reduce welding errors
Safety standards and electrical test instruments; Product of the Year winners; Easy and safe electrical design
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
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Diagnostic functions for system safety; Specifying industrial enclosures; Effective decision support for a crisis
Transformers; Electrical system design; Selecting and sizing transformers; Grounded and ungrounded system design, Paralleling generator systems
Natural gas for tomorrow's fleets; Colleges and universities moving to CHP; Power and steam and frozen foods

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