NewsDesk Deals, Openings, Acquisitions, Partnerships, Orders, Expansions, Awards US Shutdown: A Cloud Over Manufacturing I
f you weren’t paying close attention, you might have missed it. On Oct. 1, the most positive manufacturing report of the year was released by the Institute for Supply Management.
Economic activity in the US manufacturing sector ex- panded in September for the fourth consecutive month, while the overall economy grew for the 52nd consecutive month, according to the Manufacturing ISM Report on Business. The PMI registered 56.2%, an increase of 0.5 percentage point from August’s reading of 55.7%—and the highest read- ing of the year. Readings below 50 indicate contraction, while those above 50 indicate expansion. Also that day, however, the US government shut down all nonessential services over unresolved political conflicts surrounding Obamacare, which began dominating virtually all news coverage nationwide around the clock. As of press time in mid-October, the shutdown was still in place and an Oct. 17 deadline loomed over the gridlock. That is the date that Treasury Secretary Jack Lew has said he will exhaust emergency borrowing measures, leaving him with less than $30 billion in cash to pay the nation’s bills.
September’s PMI of 56.2% is an increase of 0.5 percentage points from August’s reading—and the highest reading of the year.
The shutdown, depending on its length, as well as the out- come of the debt ceiling debate, were expected to take a bite out of growth in the fourth quarter. How minor or catastrophic the size of that bite is, however, depends mightily on the next steps taken by the Legislative and Executive branches of the US government. Experts said that the economic recovery underway could be jeopardized by a prolonged delay in reach- ing a resolution.
In any case, headed into this crisis, there was momentum in the manufacturing sector. In September, the New Orders Index decreased by 2.7 percentage points to a still-healthy 60.5%, while the Produc-
Index PMI™
New Orders Production Employment
Supplier Deliveries Inventories
Prices
Series Index Sep
Series Index Aug
56.2 55.7 60.5 63.2 62.6 62.4 55.4 53.3 52.6 52.3 50.0 47.5
Customers’ Inventories 43.0 42.5 56.5 54.0 49.5 46.5 52.0 55.5 55.0 58.0
Backlog of Orders Exports Imports
Percentage Point Change
+0.5 -2.7 +0.2 +2.1 +0.3 +2.5 +0.5 +2.5 +3.0 -3.5 -3.0
OVERALL ECONOMY Manufacturing Sector
Longer-Term Direction
Growing Growing Growing Growing Slowing
Unchanged Too Low
Increasing Contracting Growing Growing Growing Growing
tion Index increased by 0.2 percentage point to 62.6%. The Employment Index registered 55.4%, an increase of 2.1 percentage points and the highest employment index read- ing for the year. ME
Eye on Canada: DMG Mori Seiki Ellison Technologies
F
ollowing its successful integration in numerous other mar- kets in Europe, Asia and the Americas, DMG Mori Seiki announced Oct. 1 at the Canadian Manufacturing Technol- ogy Show (CMTS) that it would also combine its activities in Canada, in partnership with longtime sales and service firm Ellison Technologies.
DMG, Mori Seiki and Ellison Technologies say the coopera- tive partnership will bring benefits to customers, including complementary technologies, a complete range of products, from entry-level to high-speed machining, and a high-quality sales and service network.
The company says that Canada is a critical part of its glob- al strategy. “We are determined to create a comprehensive
November 2013 |
ManufacturingEngineeringMedia.com 21
Source: Institute for Supply Management
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