PMI Index: Steady, but slower manufacturing growth

Index declines for third straight month, but stays above growth threshold

05/01/2013


Manufacturing continues its slow growth in April, according to the monthly PMI Index from the Institute of Supply Management. While April’s 50.7% level was above the 50% threshold for growth, it was the third straight month of slower growth after the index peaked at 54.2% in February. Still, the index has been at or above the break-even point for all but one month in the last year, indicating a consistent if unspectacular growth rate.

Of the 18 reporting industry segments, 14 reported growth for the month.  “The PMI registered 50.7% a decrease of 0.6 percentage points from March's reading of 51.3% indicating expansion in manufacturing for the fifth consecutive month, but at the lowest rate of the year,” said Bradley J. Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee. “Comments from the panel indicate a range of strong/steady growth, to flat/declining volumes, depending upon the particular industry.”

Among the comments from industry executives:

"Business can be described as flat at best." (Food, Beverage & Tobacco Products)

"Production is still strong; several new projects to support alternative energy." (Primary Metals)

"Slight uptick in business, but overall continuing slowdown in defense due to budget/sequester." (Computer & Electronic Products)

"Automotive demand remains firm." (Fabricated Metal Products)

"Business continues at a steady pace." (Machinery)

"General business conditions and industrial markets remain strong." (Transportation Equipment)

The PMI was above the 42.2% mark for overall economic growth for the 47th consecutive month, pointing to manufacturing’s impact on overall economic growth. “The past relationship between the PMI and the overall economy indicates that the average PMI for January through April (52.3%) corresponds to a 3.2% increase in real gross domestic product on an annualized basis,” Holcomb said. “In addition, if the PMI for April (50.7%) is annualized, it corresponds to a 2.7% increase in real GDP annually.”



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Leaders Under 40 program features outstanding young people who are making a difference in manufacturing. View the 2013 Leaders here.
The new control room: It's got all the bells and whistles - and alarms, too; Remote maintenance; Specifying VFDs
2014 forecast issue: To serve and to manufacture - Veterans will bring skill and discipline to the plant floor if we can find a way to get them there.
2013 Top Plant: Lincoln Electric Company, Cleveland, Ohio
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Bring focus to PLC programming: 5 things to avoid in putting your system together; Managing the DCS upgrade; PLM upgrade: a step-by-step approach
Balancing the bagging triangle; PID tuning improves process efficiency; Standardizing control room HMIs
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

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.