ISM forecast: Spending, revenues both expected to keep climbing

Manufacturing sector to keep building on three-year winning streak, report finds.

05/11/2012


Institute of Supply Management logo. Courtesy: ISMManufacturing's strong rebound from the depths of the 2008 recession is expected to continue throughout the rest of 2012, according to the semiannual Institute for Supply Management’s Economic Forecast. Expectations for the remainder of 2012 continue to be positive in both the manufacturing and non-manufacturing sectors.

These projections are part of the forecast issued by the Business Survey Committee of the ISM. The forecast was presented today by Bradley J. Holcomb, CPSM, CPSD chair of the Manufacturing Business Survey Committee and by Anthony S. Nieves, C.P.M., CFPM, chairs of the ISM Non-Manufacturing Business Survey Committee.

Two-thirds of the ISM Manufacturing Business Survey Committee respondents a 9.5% increase in revenues for the rest of 2012, while 15% expect a double-digit decline and 19% forecast no change. The aggregate 4.5% increase, while 1 percentage point lower than December’s forecast, is still line with ISM’s monthly manufacturing report, which has shown growth in the manufacturing sector for almost three straight years.

“With 16 out of 18 industries within the manufacturing sector predicting growth in 2012 over 2011, manufacturing continues to demonstrate its strength and resilience in the midst of global economic uncertainty and volatility. Capacity utilization is at historically typical levels and manufacturers are continuing to invest in their businesses. The positive forecast for revenue growth and modest price increases will drive a continuation of the recovery in the manufacturing sector,” said Holcomb.

Purchasing and supply managers report that their companies are currently operating at 81.6% of normal capacity, representing an increase from the 79.2% reported in December 2011, and a decrease from the 83.2% reported in April 2011.

Production capacity in manufacturing is expected to increase 5.2% in 2012. This increase is slightly less than the 5.6% increase predicted in December 2011 for 2012, but greater than the 4.6% increase reported in December for 2011.

Survey respondents expect a 6.2% increase in capital expenditures in 2012. This is considerably greater than the December 2011 forecast when members predicted an increase of only 1.9% for 2012. Currently, 42% of respondents predict increased capital expenditures in 2012, with an average increase of 23.4%, while the 13% who said their capital spending would decrease expect an average decrease of 25.8%, and 45% say they will spend the same in 2012 as they did in 2011.

- Edited by Chris Vavra, Plant Engineering, www.plantengineering.com 



Top Plant
The Top Plant program honors outstanding manufacturing facilities in North America.
Product of the Year
The Product of the Year program recognizes products newly released in the manufacturing industries.
System Integrator of the Year
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.
June 2018
2018 Lubrication Guide, Motor and maintenance management, Control system migration
May 2018
Electrical standards, robots and Lean manufacturing, and how an aluminum packaging plant is helping community growth.
April 2018
2017 Product of the Year winners, retrofitting a press, IMTS and Hannover Messe preview, natural refrigerants, testing steam traps
June 2018
Machine learning, produced water benefits, programming cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
Spring 2018
Burners for heat-treating furnaces, CHP, dryers, gas humidification, and more
April 2018
Implementing a DCS, stepper motors, intelligent motion control, remote monitoring of irrigation systems
February 2018
Setting internal automation standards

Annual Salary Survey

After two years of economic concerns, manufacturing leaders once again have homed in on the single biggest issue facing their operations:

It's the workers—or more specifically, the lack of workers.

The 2017 Plant Engineering Salary Survey looks at not just what plant managers make, but what they think. As they look across their plants today, plant managers say they don’t have the operational depth to take on the new technologies and new challenges of global manufacturing.

Read more: 2017 Salary Survey

The Maintenance and Reliability Coach's blog
Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
One Voice for Manufacturing
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 Maintenance and Reliability Professionals Blog
The Society for Maintenance and Reliability Professionals an organization devoted...
Machine Safety
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
Research Analyst Blog
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Marshall on Maintenance
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
Lachance on CMMS
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Electrical Safety Update
This digital report explains how plant engineers need to take greater care when it comes to electrical safety incidents on the plant floor.
Maintenance & Safety
The maintenance journey has been a long, slow trek for most manufacturers and has gone from preventive maintenance to predictive maintenance.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
Randy Steele
Maintenance Manager; California Oils Corp.
Matthew J. Woo, PE, RCDD, LEED AP BD+C
Associate, Electrical Engineering; Wood Harbinger
Randy Oliver
Control Systems Engineer; Robert Bosch Corp.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me