Category: Blog

Manufacturing in U.S. Contracts at Fastest Pace in Six Years

Manufacturing in the U.S. contracted in December at the fastest pace in more than six years as factories, hobbled by sluggish global growth, cut staff at the end of 2015.

The Institute for Supply Management’s index declined to 48.2, the weakest since June 2009, from 48.6 a month earlier, the Tempe, Arizona-based group’s report showed Monday. Readings lower than 50 indicate contraction. The median forecast in a Bloomberg survey of 72 economists was 49.Capture

Struggling overseas demand and declines in commodity prices that are hurting investment in energy and agriculture continue to limit orders for American manufacturers. At the same time, robust domestic growth buoyed by labor-market momentum and burgeoning wage gains are supporting consumers’ spending power and preventing U.S. factory activity from slowing even more.

“As the impact of the strong dollar and weak global demand continues to play out, it’s no surprise that we’re seeing these kinds of sub-par prints in manufacturing,” said Millan Mulraine, deputy head of U.S. research and strategy at TD Securities LLC in New York, whose projection tied for the closest in the survey. “As low energy prices continue to have an impact on the energy sector, then we’re likely to see a weak showing in manufacturing for a long time.”

Estimates for the manufacturing index from economists in the Bloomberg survey ranged from 46.6 to 51.

Global Weakness

Factories globally ended the year on a weak note, contributing to a selloff in stocks worldwide on Monday.
Manufacturing in China contracted in December for a fifth consecutive month as the world’s second-largest economy is poised to grow in 2016 at the slowest pace since 1990. In the U.K., manufacturing unexpectedly cooled in December, suggesting it made little contribution to the economy in the final quarter of 2015.
The euro area provided one bit of good news as the region’s factories expanded in December at the fastest pace in 20 months. Manufacturing grew in all nations covered, including Greece, for the first time since April 2014.
Ten of the 18 U.S. industries surveyed by ISM contracted last month, led by clothing, plastics and machinery, according to the report.

While the U.S. ISM’s gauge of new orders improved to 49.2 last month from 48.9 in November, it still showed bookings were falling. Order backlogs thinned to the smallest in three years.

Exports, Imports

The measure of export orders showed foreign demand surprisingly climbed in December for the first time in eight months, signaling the worst may be over. The index rose to 51 from 47.5 in November. Conversely, imports dropped at the fastest pace in more than nine years.
The slump in imports indicated factories were trying to cope with soft demand and attempting to limit inventories, Bradley Holcomb, chairman of the ISM’s factory survey said in a conference call. Companies were cutting back on stockpiles of raw materials, he said.
Weakness in the ISM’s factory employment index was behind the drop in the overall measure. The hiring gauge fell to 48.1 in December from 51.3 the prior month, Monday’s report showed. The production gauge improved to 49.8 from 49.2 in November.
A jobs report due Friday from the Labor Department is projected to show employment made further strides in December, with hiring building on gains in 2014 that made it the best year since 1999. Economists are predicting payrolls climbed by about 200,000 last month after a 211,000 increase in November.

Inventory Cutbacks

The ISM report also showed gauges of factory inventories contracted at a slower pace in December, rising to 43.5 from 43 in November. Manufacturers also said their customers still held too much in stockpiles.
An index of prices paid dropped to 33.5, the lowest since April 2009, from 35.5. The prices measure has been in contraction since October 2014.
The drop in joblessness over the past year is projected to lead to bigger wage gains, which will probably spur a pickup in consumer spending and inflation. Unemployment held at a more than seven-year low of 5 percent in November.
The Federal Reserve last month increased the benchmark interest rate for the first time since 2006, indicating confidence that the economy is strong enough to withstand higher borrowing costs and that price growth is set to accelerate.

by Michelle Jamrisko

Updated on


MG Goes All Over The World


After doing a careful study of all the rolling machines and section bending machine manufacturers in the world Britoil selected MG in Italy as being able to supply the best and most suitable machines for their needs. They selected an MH325M 4 roll machine that can roll 3 m wide plate of 25 mm thick plates easily. They also purchased an AR200 section bending machine for bending smaller profiles.

CoverClick HERE to read the entire article published in Metalworking World Magazine September 5, 2015.

MG goes all over the world


FABTECH 2015 Returns to Chicago, IL– November 9-12, 2015

…and we are excited to be part of this great show and hope that you will stop by at our booth S3562 to learn more about us and our MG plate and angle roll line.

Come talk to our knowledgeable and friendly sales personnel. Ask questions. Pick up brochures. Get ideas.

We are very proud to showcase a M3015C Double Pinch Hydraulic 4-roll Plate Bending Machine (10′ x 19/32″) with a CNC Touch Command EVO control. Click HERE for information on M3015C. See pictures below of the actual machine.

1470 matr15217 1473 matr15217 1475 matr15217

We are offering the “Fabtech Plate Roll” to a great Pre-Fabtech price that you do not want to miss. Please call us for price!

Please do not hesitate to contact me should you have any questions.

Email me at or call (805) 416-6982.

FABTECH provides a convenient venue where you can meet with world-class suppliers, see the latest industry products and developments, and find the tools to improve productivity, increase profits and discover new solutions to all of your metal forming, fabricating, welding, and finishing needs.

Register by November 6 for free admission. Save $50. (Pick up badge on-site.) Click below.

Register now Fabtech 2015

Show Hours

Monday, Nov. 9 — 10:00 a.m. – 6:00 p.m
Tuesday, Nov. 10 — 9:00 a.m. – 5:00 p.m.
Wednesday, Nov. 11 — 9:00 a.m. – 5:00 p.m.
Thursday, Nov. 12 — 9:00 a.m. – 3:00 p.m.


McCormick Place
2301 S. Martin Luther King Dr.
Chicago, IL 60616


Fabtech 2015 - The Fabricator


Service Providers See Sales Growth Doubling in 2015, ISM Says

Service providers in the U.S. forecast sales growth will almost double next year to 10 percent, according to a survey by the Institute for Supply Management that also showed manufacturers project increased revenue.

The service industries’ forecast compares with a 5.1 percent sales gain they reported for 2014, the Tempe, Arizona-based group said in its semiannnual business outlook survey today. Purchasing managers at factories anticipate sales will grow 5.6 percent in 2015, up from 3.6 percent for 2014.

A strengthening labor market and the plunge in gasoline prices is giving Americans the ability to keep spending, providing support to manufacturing and service industries. The improvement in demand also bodes well for employment and investment in equipment.

Service providers predicted a 1.7 percent increase in staffing levels in 2015, up from a 1.3 percent gain posted since April. Manufacturers projected a 1.5 percent increase next year, up from a 1.2 percent gain since April.

Purchasing managers in manufacturing plan on increasing capital spending by 3.7 percent in 2015, down from a 14.7 percent gain this year. Service industries plan to increase capital investment by 3.8 percent, versus a 3.3 percent gain this year.

“Our forecast calls for a continuation of growth in 2015, building on the momentum reported in 2014,” Bradley Holcomb, chairman of the group’s factory committee, said in a statement.

Purchasing managers at service industries “are optimistic about continued growth in the first half of 2015 compared to the second half of 2014,” Anthony Nieves, chairman of ISM’s non-manufacturing survey committee, said in the statement.

To contact the reporter on this story: Shobhana Chandra in Washington at

To contact the editors responsible for this story: Carlos Torres at Mark Rohner

MG November 2014 Newsletter

NOVEMBER 2014MG’s New Three Rolls Variable Geometry Takes the Lead!

MG’s new three rolls variable geometry plate rolling machines are taking the lead with a new PH31100 (1100 bending tons) for an important Russian customer, together with a PH35.1500 (1200 tons) for a customer in Bergame, Italy.

Another big order came this week for a PH3.1500 (1500 tons) for a big Italian customer in Bergamo and a PH3.1200 (1200 tons) for a customer in Milan. All machines above with a 3.94″ thickness.

MG’s new and innovative design with heavier structure, three motorized dragging rolls and new advanced touch screen interactive control makes our variable geometry system the best heavy-duty solution in the market today!


Click HERE or the picture to the left for a full screen version of the newsletter.

FABTECH 2014 Returns to Atlanta, GA – November 11-13, 2014


…and we are excited to be part of this great show and hope that you will stop by at our booth B3773 to learn more about us and our MG plate and angle roll line.

Come talk to our knowledgeable and friendly sales personnel. Ask questions. Pick up brochures. Get ideas.

We are very proud to showcase a newly re-designed M3015C Double Pinch Hydraulic 4-roll Plate Bending Machine M3015C (10′ x 7/8″) with a CNC Touch Command EVO control.  Click the link for information on M3015C.

We are offering the “Fabtech Plate Roll” to a great Pre-Fabtech price that you do not want to miss. Please call us for price!

In addition to the show machine we have a fantastic pre-show price on a MH322D Double Pinch Hydraulic 4 Roll Plate Bending Machine  with a CNC Touch Command EVO ready to ship FOB Chicago, IL. Click the link for information on the MH322D. Call us for price!

Please take a look at the information below and do not hesitate to contact me should you have any questions.

Email me at or call (805) 416-6982.  

MG ruling the bends - bending the rules

August 2014 Manufacturing ISM® Report On Business® PMI® at 59%

ISM Report

DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report’s information reflects the entire United States, while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of August 2014.

New Orders, Employment and Production Growing
Inventories Growing
Supplier Deliveries Slowing

Tempe, Arizona) — Economic activity in the manufacturing sector expanded in August for the 15th consecutive month, and the overall economy grew for the 63rd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. “The August PMI® registered 59 percent, an increase of 1.9 percentage points from July’s reading of 57.1 percent, indicating continued expansion in manufacturing. This month’s PMI® reflects the highest reading since March 2011 when the index registered 59.1 percent. The New Orders Index registered 66.7 percent, an increase of 3.3 percentage points from the 63.4 percent reading in July, indicating growth in new orders for the 15th consecutive month. The Production Index registered 64.5 percent, 3.3 percentage points above the July reading of 61.2 percent. The Employment Index grew for the 14th consecutive month, registering 58.1 percent, a slight decrease of 0.1 percentage point below the July reading of 58.2 percent. Inventories of raw materials registered 52 percent, an increase of 3.5 percentage points from the July reading of 48.5 percent, indicating growth in inventories following one month of contraction. The August PMI® is led by the highest recorded New Orders Index since April 2004 when it registered 67.1 percent. At the same time, comments from the panel reflect a positive outlook mixed with caution over global geopolitical unrest.”

Of the 18 manufacturing industries, 17 are reporting growth in August in the following order: Plastics & Rubber Products; Furniture & Related Products; Fabricated Metal Products; Apparel, Leather & Allied Products; Wood Products; Printing & Related Support Activities; Miscellaneous Manufacturing; Paper Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Chemical Products; Primary Metals; Transportation Equipment; Computer & Electronic Products; Machinery; and Electrical Equipment, Appliances & Components. The only industry reporting contraction in August is Textile Mills.


– “Business is looking good for food manufacturing. Packaging materials prices are staying in check, minimum wage is up a bit, but manageable.” (Food, Beverage & Tobacco Products)
– “The commercial building business is good, our business is up.” (Fabricated Metal Products)
– “Overall business conditions are flat. World issues taking a toll on business. Consumers are cutting back on spending.” (Transportation Equipment)
– “Overall business is improving. Order backlog is increasing. Quotes are increasing. Much more positive outlook in our sector.” (Electrical Equipment, Appliances & Components)
– “Business in the energy sector continues to remain very robust with no signs of backing off in the near future.” (Computer & Electronic Products)
– “Demand in the United States is consistent and geopolitics remain a concern.” (Chemical Products)
– “International markets are slower due to Euro holidays, political unrest and slowing Chinese markets. North American business off slightly.” (Wood Products)
– “Business is strong. Labor is becoming a difficult issue.” (Furniture & Related Products)
– “Demand is strong. Numbers are up over last year.” (Machinery)
– “Strongest month in years. Business is solid…Awesome!” (Primary Metals)

Index Series
Direction Rate
PMI® 59.0 57.1 +1.9 Growing Faster 15
New Orders 66.7 63.4 +3.3 Growing Faster 15
Production 64.5 61.2 +3.3 Growing Faster 6
Employment 58.1 58.2 -0.1 Growing Slower 14
Supplier Deliveries 53.9 54.1 -0.2 Slowing Slower 15
Inventories 52.0 48.5 +3.5 Growing From Contracting 1
Customers’ Inventories 49.0 43.5 +5.5 Too Low Slower 33
Prices 58.0 59.5 -1.5 Increasing Slower 13
Backlog of Orders 52.5 49.5 +3.0 Growing From Contracting 1
Exports 55.0 53.0 +2.0 Growing Faster 21
Imports 56.0 52.0 +4.0 Growing Faster 19
OVERALL ECONOMY Growing Faster 63
Manufacturing Sector Growing Faster 15

Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries indexes.

*Number of months moving in current direction.

Click HERE for the complete report published on September 2, 2014

US manufacturing soars to 3-year high; construction spending jumps

The pace of growth in the U.S. manufacturing sector rose in August to its highest level since March 2011, according to an industry report released on Tuesday.

The Institute for Supply Management (ISM) said its index of national factory activity rose to 59.0 from 57.1 the month before. The reading topped expectations of 56.9, according to a Reuters poll of economists. A reading above 50 indicates expansion in the manufacturing sector. The employment gauge slipped slightly to 58.1 from 58.2, below expectations for a read of 58.4. The new orders index rose to 66.7, up from 63.4 and marking its highest level since April 2004. The gauge of prices paid fell to 58.0 from 59.5, in line with expectations.

Construction rallies


Separately, data showed construction spending rebounded strongly to hit its highest level in more than 5-1/2 years in July as private construction increased and state and local government outlays surged, a further sign of vigor in the economy.

Construction spending increased 1.8 percent to an annual rate of $981.31 billion, the highest level since December 2008, the Commerce Department reported. July’s percentage increase was the largest since May 2012 and reflected gains across all categories, with the exception of federal government.  It followed June’s revised 0.9 percent decline.

Economists polled by Reuters had forecast construction spending increasing 1.0 percent after a previously reported 1.8 percent drop in June.

Construction spending in July was buoyed by a 3.4 percent jump in state and local government projects, which lifted outlays to their highest level since June 2012. The increase in state and local government outlays, which was the largest since April 2013, offset a 1.1 percent drop in spending by the federal government on construction projects.

Private construction, the largest portion of construction spending, advanced 1.4 percent to its highest level since November 2008. Private residential construction spending gained 0.7 percent as housing starts rebounded.

The housing market recovery is back on track after stagnating from the second half of 2013 in the wake of a spike in mortgage rates and higher home prices amid a stock shortage.

Part of the increase in private residential construction spending reflected home improvements.

Investment in private nonresidential structures such as factories and gas pipelines jumped 2.1 percent in July to its highest level in five years.


By Reuters – Tuesday, 2 Sep 2014 | 10:00 AM ET

Economic News

Job Openings, Hires At Highest Levels In Years.

The AP (9/10) reports that in “signs the job market is slowly healing,” the number of job openings has “remained near the highest level in 13 years in July,” according to the Labor Department. The department also noted that companies hired workers at “the fastest pace in nearly seven years” during the same month. The number of jobs available in July “ticked down 2,000 to 4.673 million” due to a decline in government job openings, while businesses advertised more jobs in July than in June. Total hiring “jumped 81,000 to 4.87 million, the highest level” since the recession began in 2007, meaning “companies are more likely to fill their open jobs.” The numbers indicate “the job market is making progress” despite last week’s report.

Surge In Manufacturing Hiring Expected This Fall In Best Cities For Jobs.

Forbes (9/9) reports that Dallas has made the top of the list of some of the best cities for jobs this fall. The ManpowerGroup’s Employment Outlook Survey listed strong growth in manufacturing among the reasons for the top ranking of the city. Other cities making the top of the list for expected increases in manufacturing hiring are: Houston and McAllen, Texas; Phoenix, Arizona; and San Jose, California.

Oregon Business Activity Index Expands To 0.12 Thanks To Manufacturing Activity.

The Oregonian (9/10) reports that a University of Oregon monthly economic update shows that Oregon’s manufacturing climbed to a reading of 0.12 in July, based in large part on hiring and other activity in the manufacturing sector. Readings above zero indicate that business activity is growing at a faster-than-normal rate.


From SME Daily Executive Briefing 9/10/2014

FABTECH 2014 has Georgia on Its Mind

North America’s Largest Metal Forming, Fabricating, Welding and Finishing Event will be Held at Atlanta’s Georgia World Congress Center on November 11-13, 2014 

(ATLANTA, July 28, 2014)     FABTECH is flying south for November! North America’s largest metal forming, fabricating, welding and finishing event is expected to attract over 27,000 attendees and 1,400 exhibiting companies to the Georgia World Congress Center in Atlanta on Nov. 11-13.

FABTECH exhibits will include live equipment demonstrations, offering visitors the unique opportunity to see, touch and compare products side-by-side and find cost-saving solutions. Special events at FABTECH 2014 will include (partial list): a keynote presentation on “Creating U.S. Jobs and Bringing Manufacturing Back Home” by Walmart VP for U.S. Manufacturing Cindi Marsiglio; a special panel discussion on “Bridging the Manufacturing Skills Gap with Veterans” to be held on Veterans Day (Nov. 11); a keynote speech by former Pittsburgh Steeler great Rocky Bleier; and a special FABTECH Industry Night at the new College Football Hall of Fame in Atlanta.

This year’s FABTECH expo comes against the backdrop of the continued resurgence of manufacturing in the U.S. Recent data shows that manufacturers contributed $2.08 trillion to the economy in 2013, up from $2.03 trillion in 2012. Offering a one-stop shop to source the best products and services from the U.S. and all over the world, FABTECH is an invaluable resource to the continued growth of the sector.

“With 14 million pounds of equipment over 500,000 net square feet of floor space, FABTECH 2014 will be more than 25 percent larger than it was in 2010, the last time the show was held in Atlanta,” said John Catalano, show co-manager at SME. “We’ve had record numbers of attendees at each of our last two shows in Chicago and Las Vegas because there is simply no better way to see new products and technologies than at FABTECH.”

Simultaneously, FABTECH will once again host an educational program designed to enhance attendees’ careers and businesses.

“Beyond the world-class exhibits at this year’s show, attendees can add to their FABTECH experience by registering for more than 100 educational sessions and expert-led presentations,” said Mark Hoper, show co-manager at Fabricators & Manufacturers Association International. “These sessions have become extremely popular, so we encourage attendees to sign up early if they are interested in learning more about the latest industry trends and technology in the metal forming, fabricating, welding and finishing industries.”

To find out more about FABTECH and to register, visit the FABTECH attendee registration page. For more information about exhibiting at FABTECH, contact a sales representative.

FABTECH has made it easy to stay updated on show news and the latest news on manufacturing, as well as to engage with industry professionals before, during and after the event. Connect with FABTECH on Twitter, LinkedIn, Facebook and YouTube by visiting its social media page. You can also read more about industry news and FABTECH events on the FABTECH blog.

About FABTECH’s Co-Sponsors
The five FABTECH co-sponsors represent a wide variety of expertise and include: the American Welding Society (AWS), the Fabricators & Manufacturers Association International (FMA), the Precision Metalforming Association (PMA), the Chemical Coaters Association International (CCAI) and SME. Together, these associations bring unmatched technical proficiency and industry insight to the 2014 FABTECH exposition. Read more about FABTECH’s co-sponsors here.


 If you have questions about the press release or need additional information, please contact SME Public Relations at

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