Subscribe to our free, weekly email newsletter!


Logistics business news: Latest Commerce report reflects uncertainty in U.S. manufacturing sector

By Patrick Burnson, Executive Editor
October 05, 2010

After growing faster than the overall economy during the first year of the recovery, manufacturing has clearly downshifted into low gear, noted spokesmen for the National Association of Manufacturers (NAM).

According to the latest U.S. Department of Commerce report, new orders for manufactured goods edged down 0.5 percent in August.

“Today’s report marks the second decline in factory orders in the past three months,” said NAM. “Much of the overall August decline was due to a 40.2 percent plunge in volatile non-defense aircraft orders, which tend to fluctuate from month-to-month.”

Josh Green, CEO of Panjiva, an online search engine with detailed information on global suppliers and manufacturers, told LM that “the jobless recovery” is partly to blame.

“While we feel that the manufacturing sector is on a positive trajectory, it’s hard to explain that to people out of work,” he said.

Orders in the rest of manufacturing actually rose 0.4 percent in August, due chiefly to rebounds in machinery, computers and electronic products. But even with these increases, orders in these areas have slowed considerably from earlier in 2010, signaling that business investment will not likely continue to be the catalyst for economic growth as it was in the second quarter of the year.

Continued declines in new orders for construction materials and supplies and consumer goods show that housing and consumer spending have similarly weakened now that much of the temporary boost from several fiscal stimulus measures has ended.

According to NAM, the weak status of the labor market and increased uncertainty – stemming from possible federal tax and regulatory changes that are looming – will likely weigh down the recovery.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Working with research partner, The Economist Intelligence Unit, the IBM Institute for Business Value surveyed 1,023 global procurement executives from 41 countries in North America, Europe and Asia.

U.S. Carloads were down 7.8 percent annually at 259,544, and intermodal volume was off 15.7 percent for the week ending February 21 at 213,617 containers and trailers.

The Department of Transportation’s Bureau of Transportation Logistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in December 2014 was up 5.4 percent annually at $95.8 billion. This marks the 11th straight month of annual increases, according to BTS officials.

While the volume decline was steep, there was numerous reasons behind it, including terminal congestion, protracted contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union, and other supply chain-related issues, according to POLA officials.

Truckload rates for the month of January, which measures truckload linehaul rates paid during the month, saw a 7.9 percent annual hike, and intermodal rates dropped 0.3 percent compared to January 2014, which the report pointed out marks the first annual intermodal pricing decline since December 2013.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA