NAM Executive Committee Member Named to Maryland Top CEO’s List

The NAM Board of Directors is comprised of some of the Nation’s most distinguished and influential manufacturing leaders. Maryland's Most Admired CEOs Daily Record 9-2014 (1)Recently NAM Board Member and Executive Committee Member Drew Greenblatt was honored by the Daily Record in the publication’s annual list of Maryland’s Most Admired CEO’s.

Drew is the President and Owner of Marlin Steel Wire Products, LLC, a Baltimore-based manufacturing company. He has been an active and passionate advocate on behalf of manufacturers and works diligently to ensure policymakers are hearing directly from business owners about issues impacting the sector.

Marlin Steel was awarded this distinction based on excellence in several different categories including leadership and vision, competitiveness and innovation, and financial growth and performance.

Drew and his team are incredibly deserving of this honor and the NAM will continue to benefit for years to come from his leadership.

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Richmond Fed: Manufacturing Activity Continued to Expand at Fastest Pace in Over 3 Years

The Richmond Federal Reserve Bank said that manufacturing activity continued to expand at its fastest pace since March 2011. The composite index of general business conditions rose from 12 in August to 14 in September. It was the sixth consecutive monthly expansion since the winter-related contractions in both February and March. Indeed, much like other regional surveys, these data show an uptick in demand and production for manufacturers recently, with a mostly upbeat assessment for the coming months.

Looking specifically at current activity, manufacturing leaders in the Richmond Fed district noted increased paces for many of the key measures. This included new orders (up from 13 to 14), shipments (up from 10 to 11), the average workweek (up from 8 to 10) and the number of employees (up from 11 to 17). Regarding hiring, that measure was the highest level observed since December 2010, suggesting that manufacturers in the region are adding new workers at an accelerated pace. The only measure to decelerate slightly in the month was capacity utilization (down from 17 to 13), but it continues to expand at a decent rate.

Manufacturers in the region remain relatively optimistic in their expectations for the next six months, albeit marginally less positive than the month before. Indices for a number of indicators shifted somewhat lower in September but still indicate strong growth ahead. This includes new orders (down from 47 to 37), shipments (down from 43 to 41), capacity utilization (down from 35 to 26), hiring (down from 18 to 17) and the workweek (unchanged at 10). On the positive side, capital expenditures picked up the pace, with the index increasing from 27 to 38. Wages (up from 28 to 35) also accelerated convincingly.

Inflationary pressures picked up once again in September, bucking the trends seen in national pricing data.  Manufacturers in the region said that prices paid for raw materials grew 2.10 percent at the annual rate in September, up from 1.39 percent in August. Yet, looking ahead six months, respondents expect input costs to increase an annualized 2.00 percent, down from 2.05 percent the month before. This suggests that businesses anticipate modest gains in input prices over the course over the next few months, mostly in-line with Federal Reserve projections.

Chad Moutray is the chief economist, National Association of Manufacturers. 

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Markit: Chinese Manufacturing Picks Up Slightly, While Europe’s Eases Yet Again

The HSBC Flash China Manufacturing Purchasing Managers’ Index (PMI) edged slightly higher, up from 50.2 in August to 50.5 in September. The Chinese economy nearly stalled in July, and these latest data suggest that there are some signs of stabilization. For instance, this was the fourth consecutive month with expanding manufacturing activity – an improvement from earlier in the year when demand and output were contracting. In August, growth in new orders (up from 51.3 to 52.3) and exports (up from 51.9 to 53.9) accelerated somewhat, but production growth was unchanged at 51.8. One negative continues to be employment (down from 47.4 to 46.9), with hiring contracting for 11 straight months.

If the Chinese economy has rebounded marginally in September, it would be welcome news. Industrial production plummeted from 9.0 percent year-over-year in July to 6.9 percent in August, the slowest pace since December 2008. Fixed asset investments also slowed, down from an annual rate of 17.0 percent to 16.5 percent. Nonetheless, real GDP growth improved from 7.4 percent year-over-year growth in the first quarter to 7.5 percent in the second quarter. The latest data suggest that the annual pace of growth might decelerate further, however.

At the same time, the Markit Flash Eurozone Manufacturing PMI eased yet again, down from 50.7 to 50.5. This was the lowest level observed since July 2013, the first month that the Eurozone emerged from its deep two-year recession. As such, it indicates the extent to which activity in Europe has come to a halt. New orders (down from 50.7 to 49.7) contracted slightly for the first time in 15 months. Output was unchanged at 51.0, and export sales were flat at 51.7. Hiring advanced to a neutral position (up from 49.3 to 50.0). On the closely-watched inflation measures, both input (down from 51.8 to 49.4) and output (down from 50.3 to 49.2) prices moved into negative territory.

There have been persistent worries about deflation on the continent, with the European Central Bank lowering rates recently in the hope of spurring more economic activity and additional lending. As of August, Eurozone inflation had risen just 0.3 percent over the past 12 months, prompting continued worries about deflationary pressures in the economy. The annual inflation pace is down from 1.3 percent in August 2013. Real GDP remained unchanged in the second quarter, down from 0.2 percent growth in the first quarter. Moreover, it has increased just 0.7 percent year-over-year, illustrating just how sluggish the recovery has been.

Meanwhile, the Markit Flash U.S. Manufacturing PMI was unchanged at 57.9, its fastest pace since May 2010. This report continues to show strong growth in manufacturing activity in the U.S., a sign that the sector has regained the robustness seen at the end of 2013. The pace of new orders were unchanged at 60.5, indicating healthy gains, and hiring (up from 54.6 to 56.6) accelerated to its highest level since March 2012. Production (down from 60.7 to 59.9) growth was healthy, and export orders (down from 54.4 to 53.8) expanded modestly despite a slight deceleration in each figure.

Overall, the U.S. data suggest that manufacturers remain upbeat in September about overall activity, with the sector continuing to recover from softness earlier in the year. This data is largely consistent with other indicators, as well.

Chad Moutray is the chief economist, National Association of Manufacturers. 

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Comprehensive Tax Reform the True Solution to Broken System

The NAM continues to believe that recent M&A activity in the international arena strengthens the case for a comprehensive overhaul of the nation’s tax laws and the focus on regulatory fixes or targeted legislation is misplaced. While we will take a close look at the guidance released today by the Treasury department, comprehensive tax reform is essential to unleashing the economic growth we so badly need. The NAM will continue to ensure that Washington doesn’t change the discussion and keeps its focus where it belongs – on pro-growth, pro-competitiveness tax reform.

Dorothy Coleman is the Vice President of Tax and Domestic Economic Policy for the National Association of Manufacturers

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Information the Name of the Game for Teradata

As part of a blog series in advance of tomorrow’s D.A.TA. Policy Center event hosted being held at the Verizon Innovation Center – West, we’re taking a look at how Teradata’s analytic solutions are influencing and affecting the renaissance in manufacturing and technology.

Data is often the name of the game – information is king and those that have it are better equipped to handle the ups and downs of a competitive economy. Teradata’s leadership status in analytic data solutions has been critical in helping manufacturers in the U.S. gaining a competitive advantage by adopting data-driven processes. Technology trends are always changing and manufacturers that have the understanding and advance insight are in a position to take advantage of openings in markets both at home and abroad.

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Intel Propels the Internet of Things

As part of a blog series in advance of tomorrow’s D.A.TA. Policy Center event hosted being held at the Verizon Innovation Center – West, we’re taking a look at how Intel is influencing and affecting the renaissance in manufacturing and technology. 

The Internet of Things (IoT) promises to change the way we live and work, with the number of connected devices that can share data increasing at a dramatic pace. To drive manufacturing business transformation there are four key areas that are crucial to the success of the IoT: security, interoperability, industry standards, and scaling with the ecosystem.  As the resurgence of manufacturing continues to accelerate, Intel is propelling advances in IoT for the industrial sector by delivering and deploying solutions that help connect, secure, manage, and analyze devices and data.

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Trimble Taking Manufacturing New School

As part of a blog series in advance of tomorrow’s D.A.TA. Policy Center event hosted being held at the Verizon Innovation Center – West, we’re taking a look at how Verizon is influencing and affecting the renaissance in manufacturing and technology. 

Manufacturing has often been perceived as old-school – Trimble is focused on transforming the way many commercial or “outdoor” industries work with the use of advanced technology. In the construction, agricultural, and transportation industries, workers and their equipment are more connected than ever. We’ve seen game-changing increases in productivity and safety, making manufacturing into a truly “new-school” industry and a driver in the American economy.

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Verizon Helps Manufacturers Innovate and Compete

As part of a blog series in advance of tomorrow’s D.A.TA. Policy Center event hosted being held at the Verizon Innovation Center – West, we’re taking a look at how Verizon is influencing and affecting the renaissance in manufacturing and technology.

The intersection of manufacturing and technology will define the future of manufacturing in the U.S. Verizon closely partners with manufacturers to provide leading technologies such as cloud, Internet of Things, mobility, security and network solutions which are helping to drive innovation and solve for business challenges. Faced with industry challenges such as a looming talent shortage, accelerated time to market pressures, intense global competition and cyber espionage, manufacturers must innovate to remain competitive and thrive into the 21st century.

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Monday Economic Report – September 22, 2014

Here is the summary of this week’s Monday Economic Report: 

Manufacturing production declined unexpectedly in August, led lower by reduced motor vehicle output. This drop was likely the result of automakers’ switching over to a new model year and summer vacations. Indeed, auto production has risen 8.1 percent over the past 12 months, continuing to make it one of the bright spots in the economy. Excluding autos, manufacturing output rose 0.1 percent, suggesting slightly better news for the broader sector. Still, the larger story is the accelerated pace of output seen since the winter months, with the year-over-year pace up from 1.6 percent in January to 4.0 percent in August. Durable and nondurable goods production has increased 5.6 percent and 2.2 percent year-over-year, respectively. Hopefully, the August figures reflect a brief pause before picking up again in September.

Regional sentiment surveys tend to suggest that this might be the case. The Empire State Manufacturing Survey from the New York Federal Reserve Bank said that business conditions rose at their fastest pace in nearly five years, with 46 percent of those taking the survey saying that the environment had improved in the month. At the same time, the Philadelphia Federal Reserve Bank’s Manufacturing Business Outlook Survey found healthy rates of growth in September, even as the pace pulled back slightly from very strong gains in August. Each of these two surveys reported higher levels for new orders and shipments, but they were mixed regarding hiring growth. Nonetheless, manufacturers in both districts were overwhelming upbeat about the next six months, with more than half of respondents predicting sales increases. Moreover, the Philly Fed found that a majority of those taking its survey expect production to increase in the third and fourth quarters.

Meanwhile, housing starts fell from an annualized 1,117,000 units in July to 956,000 in August. To be fair, the July figure—the second fastest pace since November 2007—was likely an outlier, and the pendulum—not unexpectedly—swung back somewhat. Yet, the slowdown in August was still disappointing. On the bright side, while single-family and multi-family unit starts and permits were both down, the highly volatile multi-family segment comprised the bulk of the decline. Looking at a longer time horizon, each has continued a slow, but steady upward trajectory. I continue to expect housing starts to be solidly at 1.1 million by year’s end. Indeed, home-builder confidence was equally optimistic about better figures moving forward, with the Housing Market Index at its highest level since November 2005.

The Federal Reserve Board provided the other major headline from last week. The Federal Open Market Committee (FOMC) began laying out its principles for winding down the extraordinary stimulus that it has pursued since the financial crisis at the end of 2008. The Fed will end its purchases of long-term and mortgage-backed securities after its October FOMC meeting, and the expectation is that short-term interest rates will begin to “normalize” at some point in 2015. The federal funds rate, however, will remain near zero for a “considerable time after the asset purchase program ends,” a statement that some suggest means that normalization will not occur until mid-2015 at the earliest. Fortunately, news that consumer and producer pricing pressures eased in August was likely welcomed at the FOMC because it takes some pressure off of the Fed to act sooner, at least for now. (Inflation has accelerated from where it was earlier in the year, but remains below the Fed’s stated 2.0 percent goal.)

In its FOMC statement, the Federal Reserve said that “economic activity is expanding at a moderate pace.” Nonetheless, it continues to worry about slack in the economy, particularly in labor markets. The Fed predicts growth this year of between 2.0 and 2.2 percent, with 2.6 to 3.0 percent real GDP growth next year. The unemployment rate is expected to fall to 5.9 or 6.0 percent by the end of 2014 and 5.4 to 5.6 percent by the end of 2015. In terms of inflation, the Fed forecasts prices growing by less than 2.0 percent over the next few years. If core inflation consistently exceeds 2.0 percent, it will give greater credence to hawks on the FOMC to increase rates sooner rather than later.

This week, we will get a sense of how manufacturing activity is faring globally with preliminary purchasing managers’ index (PMI) data from Markit for China, the Eurozone and the United States. The Chinese economy has begun to stabilize after slowing earlier in the year, but is still not growing by much. European growth has effectively come to a halt. In the United States, however, recent PMI data have reflected healthy gains in both demand and output over the summer months. We will also get new surveys from the Kansas City and Richmond Federal Reserve banks. Beyond those surveys, we will get the second revision to real GDP growth for the second quarter on Friday, with a consensus estimate of 4.3 percent growth, or just slightly higher than the previous 4.2 percent figure.

Other highlights this week include the latest data on consumer confidence, durable goods orders and shipments, and existing and new home sales.

Chad Moutray is the chief economist, National Association of Manufacturers. 

housing starts and permits - sept2014

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Georgia Added the Most Manufacturing Employees in August

Georgia added the most net new manufacturing employees in August, according to new state-wide employment data provided by the Bureau of Labor Statistics. Georgia manufacturers hired an additional 5,500 workers in the month. This was followed by Florida (up 4,500), Colorado (up 2,100), Illinois (up 2,100) and Michigan (up 2,000). On a year-to-date basis, Georgia also fared well, making the top five states for manufacturing job growth. The top five states for manufacturing job gains through August were Indiana (up 14,300), Ohio (up 9,400), Georgia (up 9,100), Texas (up 9,100) and Michigan (up 7,100).

Since the recession, manufacturers have added 681,000 net new workers. Michigan has added the most manufacturing employees since the end of 2009, hiring 111,300 on net. Other top states since the recession ended include Texas (up 80,100), Indiana (up 72,600), Ohio (up 61,300) and Wisconsin (up 41,600).

In terms of the unemployment rate, North Dakota’s 2.8 percent rate remains the lowest in the United States, with shale exploration continuing to pay benefits that that state’s economy. Nebraska, South Dakota and Utah also have very low unemployment rates, each with 3.6 percent of their populations unemployed. At the other end of the spectrum, Georgia (8.1 percent) has the highest unemployment rate, followed by Mississippi (7.9 percent), Rhode Island (7.7 percent), the District of Columbia (7.6 percent) and Nevada (7.6 percent).

Chad Moutray is the chief economist, National Association of Manufacturers. 

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


A Manufacturing Blog

  • Categories

  • Connect With Manufacturers

            
  • Blogroll