Order increase helps February PMI rebound

After slipping in January, index finds solid footing with a jump back to 53.2%

03/04/2014


Even with a slowdown in production and the continuing harsh winter throughout most of the country, the monthly manufacturing PMI Index showed a 1.9 percentage point 

ISM

increase in February to 53.2%. The index has fallen in January to an eight-month low of 51.3%, but the February increase kept the PMI’s winning streak intact with nine straight months of growth, and the index has been at or above the 50.0% level for more than a year.

“As in January, several comments from the panel mention adverse weather conditions as a factor impacting their businesses in February,” said Bradley J. Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee, which creates the PMI report. “Other comments reflect optimism in terms of demand and growth in the near term.”

New orders rose 3.3 percentage points to 53.3%. It was the ninth straight month of growth for new orders, and reversed a slip similar to the overall PMI in January.

Other than the weather, the big concern in the PMI data in February was the fall in the production index. That dropped below the growth 

threshold for the first time in 17 months to 48.2%. That was a decrease of 6.6 percentage points from January. Apparel and leather goods were among the categories with production declines, while bellwethers such as food, heavy machinery and automotive did post production increases in the month.

Among the comments from PMI panel members were:

PLE1403_WEB_IMG_ISM_Last 12 Months

  • “Cold weather is having a negative impact on our business (garment). Orders are down.”(Apparel, Leather & Allied Products)
  • “Continue to have trouble finding qualified CNC machinists. Desperately trying to hire CNC programmers.” (Fabricated Metal Products)
  • “Bad weather hampering logistics across the country.” (Petroleum & Coal Products)
  • “Very strong month in terms of growth.” (Computer & Electronic Products)
  • “Many raw material disruptions due to weather and back-ups at the ports.” (Chemical Products)
  • “"Slow January, but February orders are picking up.” (Food, Beverage &Tobacco Products)
  • "Conservative optimism re-kindling. Steady as it goes.” (Machinery) 

The PMI remains the strongest indicator of overall economic growth. For the 57th straight month, the PMI was above the 43.2% growth level for the overall economy. Holcomb said this month’s PMI indicates a growth rate of 3.3% in GDP for the year.



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.
September 2018
2018 Engineering Leaders under 40, Women in Engineering, Six ways to reduce waste in manufacturing, and Four robot implementation challenges.
July/Aug
GAMS preview, 2018 Mid-Year Report, EAM and Safety
June 2018
2018 Lubrication Guide, Motor and maintenance management, Control system migration
August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
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
Spring 2018
Burners for heat-treating furnaces, CHP, dryers, gas humidification, and more
August 2018
Choosing an automation controller, Lean manufacturing
September 2018
Effective process analytics; Four reasons why LTE networks are not IIoT ready

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.
Material Handling
This digital report explains how everything from conveyors and robots to automatic picking systems and digital orders have evolved to keep pace with the speed of change in the supply chain.
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.
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.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
click me