Tag: manufacturing

ISM Forecast: US Manufacturers Seen Leading Growth Next Year.

U.S. manufacturers are more optimistic about sales, spending and hiring for next year than service companies, a sign factories will remain at the forefront of the economic expansion, according to the Institute for Supply Management.

Purchasing managers at factories anticipate sales will grow 5.5 percent next year and capital investment will increase 1.9 percent, the Tempe, Arizona-based group’s semiannual forecast showed today. Revenue and spending will increase at a slower pace among service providers, which account for about 90 percent of the economy.

“Manufacturing has demonstrated its resilience throughout this challenging economic recovery period, with consistent growth dating back to August of 2009,” Bradley Holcomb, chairman of the group’s factory survey, said in a statement. Manufacturers “expect to see continued growth in 2012.

”The increase in factory demand next year may fall short of the improvement in 2011. The projected gain in 2012 sales compares with a 7 percent increase for this year. For the services industry, revenue is forecast to be stronger than the 1.5 percent gain in 2011.
Factory employment is projected to increase 1.3 percent in 2012, compared with a 1.1 percent projected rise at non- manufacturing companies. Sales in the services industry will increase 3.1 percent next year and investment spending will rise 0.1 percent.

ISM Factory Gauge

The factory gauge has averaged 55.4 so far this year, reaching a 2011 low of 50.6 in August and since rising to 52.7 last month. The service index has averaged 54.6 in 2011. It dropped last month to 52, its lowest since January 2010.

Growth in emerging markets is helping sustain demand for U.S.-produced goods. Deere & Co. (DE), the world’s largest farm- equipment maker, on Nov. 23 reported fiscal fourth-quarter profit and forecast 2012 earnings that topped analysts’ estimates.

“We expect sound farmer confidence and strong equipment demand,” investor communications manager Susan Karlix said on a conference call. “Globally, coming off 2011’s high levels, the 2012 industry outlook is for stable commodity prices and farm income.”

To contact the reporter on this story: Bob Willis in Washington at bwillis@bloomberg.net
To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

Manufacturing Technology Orders Exceed Forecast

Up 102.9% from 2010

July U.S. manufacturing technology orders totaled $506.97 million according to AMTDA, the American Machine Tool Distributors’ Association, and AMT – The Association For Manufacturing Technology.

This total was up  7.3% from June and up 92.7% when compared with the total of $263.14 million reported for July 2010.

With a year-to-date total of $2,975.10 million, 2011 is up 102.9% compared with 2010.

“The manufacturing beat goes on! Machine tool sales continue to exceed forecasts for 2011,” said Peter Borden, AMTDA president. “The stock market’s volatility and the traditional summer slowdowns as budgets are depleted were no match for the ongoing demand to get new machines into production as soon as possible. This pace will slow; but for USMTO 2011 so far, there are no signs of what we hear on the nightly news.”

On a regional basis sales in the  Northeast region were $58.38 million, down 17.9%  compared with the $71.08 million total for June but up 11.3% when compared with July a year ago. The year-to-date total of $434.97 million is 63.6% more than the comparable figure for 2010.

Orders in the Southern region totaled $75.03 million, 13.4% more than June’s $66.19 million and 191.3% more than the July 2010 total. With a year-to-date total of $381.76 million, 2011 is up 79.6% when compared with 2010 at the same time.

Midwest Region manufacturing technology orders in July stood at $159.26 million, 1.0% more than the June total of $157.62 million and up 70.2% when compared with last July. At $1,016.66 million, the 2011 year-to-date total is 138.5% more than the comparable figure for 2010.

And the Western region’s sales hit $107.31 million in July, 108.2% more than the $51.55 million total for June and 252.6% higher than the tally for July 2010. At $355.14 million, 2011 year-to-date is up 102.3% when compared with last year at the same time.

In the Central region sales totaled $106.98 million, down 15.2% from June’s $126.14 million but up 75.7% when compared with the July 2010 figure. The $786.57 million year-to-date total is 103.6% higher than the total for the same period in 2010.

From Industry Week Sept. 12, 2011