September Manufacturing Report is Mixed Bag

Oct. 6, 2010
Without a doubt, glimmers of improvement are beginning to appear throughout the business landscape. But, most economic indicators I see continue to point towards a recovery that will be bumpy, at best. To help illustrate my point, let me walk you through ...

Without a doubt, glimmers of improvement are beginning to appear throughout the business landscape. But, most economic indicators I see continue to point towards a recovery that will be bumpy, at best.

To help illustrate my point, let me walk you through some new survey results from the latest Manufacturing ISM Report on Business. The data shows that:


Economic activity in the manufacturing sector expanded in September for the 14th consecutive month.


However, growth of new orders continued to slow.


"While the headline number shows relative strength this month as the PMI reading of 54.4 percent is still quite positive, the overall picture is less encouraging. The growth of new orders continued to slow, as the index is down significantly from its cyclical high of 65.9 percent (January 2010). Production is currently growing at a faster rate than new orders, but it typically lags and would be expected to weaken further in the fourth quarter," explains Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. "Manufacturing has enjoyed a stronger recovery than other sectors of the economy, but it appears that weaker growth is the expectation for the fourth quarter. Both the Inventories and Backlog of Orders Indexes are sending strong negative signals of weakening performance in the sector."

Here's a look at some of the survey results in more detail:

http://atrisk.net/wp-content/uploads/2010/10/Sept-ISM-Capture2.jpg

So, even though many businesses are feeling somewhat better than they did at this time last year, it's clear that most remain very cautious. To mitigate some of the risks inherent to this type of uncertainty, keep in close contact with your strategic suppliers. By building strong, collaborative relationships throughout your supplier network, you'll be better prepared for changes to their inventories, financial conditions, etc.

A comprehensive breakdown of the latest Manufacturing ISM Report on Business is available here.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!