Manufacturers Remain Persistent and Push On

Welcome to October, the month manufacturers celebrate their achievements and open their doors to students, parents and educators in their communities as part of MFG Day initiatives. An initiative of the Manufacturing Institute, MFG Day is October 7 and will be observed at events to be held across the nation throughout the month of October. Participants can view the inner workings of modern manufacturing plants which are using the most technologically advanced processes to create all kinds of crucial goods.

And manufacturers are successfully creating and producing these crucial goods all while facing challenges ranging from the supply chain to the labor force. In fact, it was a busy summer for metal fabricators and machinists who were hard at work balancing demands for products and services while navigating bumps in the road. According to manufacturing-related business indicators, the upcoming months will be a game of holding steady and staying the course as many manufacturers expect little change in economic conditions, even while there is talk of a potential economic recession.

The data shows economic activity in the manufacturing sector grew in August, with the overall economy achieving a 27th consecutive month of growth, according to the Precision Metalformers Association’s monthly report, which reported a Manufacturing PMI of 52.8%. Five of the six largest manufacturing industries — Petroleum & Coal Products; Transportation Equipment; Computer & Electronic Products; Machinery; and Food, Beverage & Tobacco Products — registered moderate-to-strong growth.

In another indicator released in August, the Precision Metalformers Association reported that its members expect little change regarding incoming orders, with 17% of survey respondents forecasting an increase in incoming orders during the next three months (compared to 20% in July); 49% predicting no change (compared to 48% last month); and 34% anticipating a decrease in orders (compared to 32% in July).

Also in August, it was reported that June’s cutting tool orders totaled $175.4 million, which were up 2.2% when compared with the $172.1 million reported for June 2021, according to the U.S. Cutting Tool Institute and AMT – The Association For Manufacturing Technology. With a year-to-date total of $1.1 billion, 2022 is up 7.9% when compared to the same time period in 2021.

The positive signs keep coming. “The U.S. manufacturing sector [in August] continues expanding at rates similar to the prior two months,” said Timothy R. Fiore, CPSM, C.P.M., chair of ISM’s Manufacturing Business Survey Committee. “New order rates returned to expansion levels, supplier deliveries remain at appropriate tension levels and prices softened again, reflecting movement toward supply/demand balance. According to Business Survey Committee respondents’ comments, companies continued to hire at strong rates in August, with few indications of layoffs, hiring freezes or head-count reductions through attrition. Panelists reported lower rates of quits, a positive trend.”

FABTECH 2022: Where Innovation Meets Opportunities

Positivity and opportunity will be front and center at FABTECH, which heads to the Georgia World Congress Center in Atlanta from November 8-10. This issue of Fabricating & Metalworking contains a preview of demonstrations and exhibits attendees can expect to see at North America’s largest metal forming, fabricating, welding and finishing event. Many exhibitors will unveil new or updated machinery or products and services. Learn about the solutions to assist your shop in improving productivity and increasing your bottom line.

Rachel Duran is the editor of Fabricating & Metalworking. She can be contacted by emailing [email protected] or by calling 1-866-832-8473, ext. 108.

www.fabricatingandmetalworking.com

Subscribe to learn the latest in manufacturing.