Subscribe to our free, weekly email newsletter!



Will U.S. manufacturing step up?

By Patrick Burnson, Executive Editor
August 05, 2011

While the global economic crisis continues to capture mainstream business press headlines this week, one supply chain industry analyst reports that other recent trends bear watching.

According to Daniel J. Meckstroth, Ph.D., Chief Economist for the Manufacturers Alliance/MAPI, the ISM Index for July suggests a more complex recovery scenario:
         
“The Institute for Supply Management reports that its index of manufacturing activity was 50.9 percent for July, 4.4 percentage points less than the 55.3 percent seen in June.  Fifty percent is the dividing line between expansion and contraction,” Meckstroth said.  “Manufacturing posted very strong growth from January to April but the pace of growth has decelerated markedly since that time and appears to have nearly flattened out by July.  Some of the late spring and early summer doldrums were caused by supply chain issues related to getting automotive and semiconductor imports from Japan, and transportation delays due to spring flooding in the Midwest.  But the underlying problem is that the economy is growing very slowly.  GDP was nearly unchanged in the first quarter (0.4 percent) and grew only at a 1.3 percent annual rate in the second quarter of 2011.

“Commodity inflation eroded consumers’ spendable incomes at a time when they were working through debt problems and state and local governments cut spending to solve budget problems,” he added.  “Although the ISM report is gloomy, we expect manufacturing activity to improve.  Motor vehicle production schedules are increasing as parts are more available and inventories remain low.  In addition, business equipment spending has been, and is expected to remain, relatively strong.  Profits are high and firms are willing to invest to upgrade their operations to take advantage of accelerated depreciation.”

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

Transportation stakeholders reliant on North Carolina’s major seaports are welcoming news this week, which outlines plans to enhance the intermodal and cold chain network in the region.

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 56.9 in February, which was 0.2 percent ahead of January and also 0.1 percent ahead of the 12-month average of 56.8. Economic activity in the non-manufacturing sector has grown for the last 61 months, according to ISM.

Non asset-based third-party logistics (3PL) services and logistics technology services provider Transplace said today that Brooks Bentz has joined the company in a newly-created role as president of Transplace Consulting in conjunction with the launch of the company’s new North American consulting services practice.

The advent of e-commerce continues to grow and gain increased traction over time. The many ways for consumers to order and purchase goods online continues to expand and leads to various subsequent byproducts of online purchases, including shopping through multiple channels, and delivery and payment options, among other things. These types of topics serve as the thesis in the second annual UPS Pulse of the Online Shopper Global Study issued this week by UPS and comScore Inc.

A major highlight of CEVA’s fourth quarter performance was its new business wins, which were up 14 percent for all of 2014, with Freight Management wins up 14 percent, and Ocean Freight and Air Freight wins up 30 percent and 14 percent, respectively, while Contract Logistics wins were up 2 percent.

Article Topics

Blogs · Global Logistics · Global · Global Trade · All topics

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