July 25, 2018
“With 84 companies responding, the PMPA Business Trends Index for June 2018 held steady at 138, highest June on
record and tied with May 2018. The calendar year average remains 136. The 2018 June index of 138 is 2.2% higher
than June 2017’s 135 value. This is our Index’s highest value recorded for June, and is our second highest value ever
recorded (March 2018’s 143 was the highest ever).”- PMPA Business Trends Report- June 2018
2018 continues to set a blistering pace for the performance and sentiment indicators that we
track. June 2018 is now our second highest sales Index ever- tied with May 2018- while March 2018 was our all-time
high. Our forward- looking indicators remain strongly positive even as they reflect some softening from our current record
levels of performance. Our industry continues to outperform 5-year averages by a wide margin- ~10.4% for June!
See the full report here: https://www.pmpa.org/news/latest-news/2018/07/24/pmpa-business-trends-june-2018
Employment prospects are 98% positive In precision machining shops!
P.S- Employment Sentiment: Prospects for employment are positive and strengthening with ninety-eight percent (98%)
expecting level or increased opportunities for employment!
photo credit: Life of Dad blog
July 11, 2018
In case you were wondering how well the US Department of Commerce is taking care of the exclusion requests by American Metalworking companies, here’s some data.
0ver 98.9% of all requests for exclusions remain unprocessed!
Requests for exclusions for both steel and aluminum have less than a half of a percent chance of being approved- 0.35% for steel and 0.47% for aluminum.
Where else but government is this level of performance tolerated?
We will update this from time to time.
June 28, 2018
PMPA Business Trends Sales Index for May climbed to its second highest value ever as forward looking indicators for Sales, Lead Time, Employment and Profitability softened but remained positive.
Second only to the value for March 2018!
Our year to date average is 136, up 11 points or 8.8% over 2017’s year-end average of 125.
We are at 106% of where we were a year ago in May.
The FED reported that Industrial Production (IP) Industrial Production edged down 0.1 percent in May after rising
0.9 percent in April. Manufacturing production fell 0.7 percent in May, largely because truck assemblies were disrupted by
a major fire at a parts supplier. Excluding motor vehicles and parts, factory output moved down 0.2 percent.”
Our industry is clearly outperforming IP- they cannot make it until we produce the precision components needed.
The sentiment indicators while lower, still remain in positive territory, and are likely based on the realization that the summer is typically less demanding than the first quarter.
Full report available HERE
May 1, 2018
Despite a drop of two points from 59.3 to 57.3, the April Institute for Supply Management Purchasing Managers Index (ISM-PMI) indicated continued solid, but slowing growth in the manufacturing sector. Of the 18 Manufacturing Industries, 17 reported growth in April. Demand remains robust, but the nation’s employment and supply chains continue to struggle- April 2018 ISM PMI, Timothy Fiore, Chair, ISM Manufacturing Business Survey Committee.
The April report noted declines in other indexes such as New Orders (down 2 points); Production Index (down 3.8 points); New Orders down 0.7 points); and he Employment index (down 3.1 points) compared to March. Prices index was up 1.2 percent from prior month, indicating the 26th consecutive month of gains.
The prices index is currently at its highest value since April 2011; 17 of 18 industry sectors reported price increases.
108th consecutive month of expansion for the overall economy according to ISM PMI for Manufacturing.
What is going on in manufacturing? Here are a couple of comments from some of the ISM’s respondents:
- “Business is off the charts. This is causing many collateral issues: a tightening supply chain market and longer lead times. Subcontractors are trading capacity up, leading to a bidding war for the marginal capacity. Labor remains tight and getting tighter.”
- “[The] 232 and 301 tariffs are very concerning. Business planning is at a standstill until they are resolved. Significant amount of manpower [on planning and the like] being expended on these issues.”
- “The recent steel tariffs have made it difficult to source material, and we have had to eliminate two products due to availability and cost of raw material.
PMPA’s March Business Trends Report just came in and showed a record high at 143 for sales. We look forward to seeing what our April report has in store.
Chart courtesy Calculated Risk Blog
ISM April PMI Report
April 27, 2018
“With 91 companies responding, the PMPA Business Trends Index for March 2018 increased 14 points or 10.8% over
February to 143, the highest value for the Business Trends Index EVER! At 143, the index is up 11.2 points or 8.5%
above the five-year average for the March sales index of 131.8. ” – PMPA March 2018 Business Trends Report
All time high for Our Sales Index!
Sentiment indicators from our respondents remained high. PMPA members can get the full report here. Press can request a copy – we’ll be happy to share.
Two of three months in 2018 have set new records for sales. Our industry is outperforming five year averages by wide margins- up 8.5% for March.
Prospects for employment remain high in our shops, even as the national figures tout “full employment.”
If you know someone that is underemployed, or unemployed, the prospects for great careers in our precision manufacturing shops have really never looked better.
March 2018 PMPA Business Trends Report
February 6, 2018
Autonomy in our technology is real! (Photo courtesy Joshua Andrade- Heinlein Forum on Facebook)
I was privileged to be able to witness the live cast of the Falcon Heavy Lift vehicle today. The photo above shows two booster engine modules simultaneously and autonomously landing. This was just a small part of the technology displayed today by the Falcon Heavy launch.
But here is why I say that a new era starts today:
- This is proof that Autonomy in our technology is real. It’s no longer about listening to a reporter somewhere talking about autonomous cars on test tracks. We got to see it ourselves today. It works. Now, it’s just a matter of scaling and networking the technology. We’ll be seeing this in our customers products sooner than we expected.
- Private enterprise for the win. NASA’s Bill Gerstenmaier, Associate Administrator for Human Exploration and Operations said that “the NASA SLS (Space Launch System) heavy rocket would cost about $1 billion per launch.” The Falcon Heavy cost is about $90 million per Launch. That’s about $910,000,000 in unneeded taxes per launch.
- Today’s launch has proven that the existential joy of engineering is alive and well and making cost effective technology in private enterprise. Space is no longer limited to staid, bureaucratic, rationalizations that it is for research for the common good missions. Today, it is about the human spirit and what we can achieve.
- This was not cobbled together by the lowest bidder with a bunch of imported parts. Although the label on a circuit board proudly proclaims “*Made on Earth by humans” this is validation of the capability of US private enterprise, engineering, and the entrepreneurial equivalent of the gold record on Voyager.
- This is the defining event of the new renaissance of Engineering, Entrpreneurialism, and Manufacturing to further mankind’s material progress. Through our own capable efforts.
Made on Earth by humans (Photo courtesy Joshua Andrade)
I am glad to be a witness to this milestone in the renaissance of manufacturing, engineering, and entrepreneurial accomplishment here in America today. An electric car, is on its way to Mars. I watched two booster engines land themselves simultaneously. I watched the joy of the engineers as their work accomplished its demonstration of the power of our technology. This is the current generation’s SPUTNIK moment.
Baby boomers can just barely remember what Sputnik did to transform for our culture, but many of us chose science and engineering and technology careers. Today, we all had the chance to see a similar watershed for technology, manufacturing, and entrepreneurial spirit, and that it is cool again.
Existential Joy of Engineering- Why shouldn’t we love what we do?
The existential joy of engineering is alive and well, and it has just sent a red car hurtling towards a rendezvous with the red planet.
Red car to rendezvous with a red planet
…to be continued
Link to video Space X Falcon Heavy Launch– start at 4:14:24 to start with the launch
Photocredits: for Landing and Circuit board: Joshua Andrade (J Meauho Andrade on Facebook)
February 1, 2018
Positive indicators for our precision machining shops from ISM and PMPA.
According to today’s release of the January 2018 Institute for Supply Management -Purchasing Manager’s Index, economic activity in the manufacturing sector expanded in January, although at a slower rate than in December 2017. The January PMI came in at 59.1%, down 0.2% from 59.3% in December.
Continued strength in Manufacturing according to the nation’s Purchasing Managers at the Institute for Supply Management.
A reading above 50 percent in the PMI indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
While the ISM-PMI report highlighted slight declines in the following indicators for our manufacturing businesses, they still bode well for manufacturing’s strength:
- The New Orders Index registered 65.4 percent, a decrease of 2 percentage points from the seasonally adjusted December reading of 67.4 percent.
- The Production Index registered 64.5 percent, a 0.7 percentage point decrease compared to the seasonally adjusted December reading of 65.2 percent.
- The Employment Index registered 54.2 percent, a decrease of 3.9 percentage points from the seasonally adjusted December reading of 58.1 percent. The Supplier Deliveries Index registered 59.1 percent, a 1.9 percentage point increase from the seasonally adjusted December reading of 57.2 percent.
Other comments from this report that convey positivity for our sector including “expanding business conditions, with new orders and production maintaining high levels of expansion; employment expanding at a slower rate; order backlogs expanding at a faster rate; and export orders and imports continuing to grow faster in January. Supplier deliveries continued to slow (improving) at a faster rate. Price increases occurred across all industry sectors. The Customers’ Inventories Index indicates levels are still too low. Capital expenditure lead times increased 8 percent during the month of January.” These all signal that manufacturing continues to be very busy up and down the supply chain. The “Customer’s inventories being too low,” comment tells me that there will continue to be strength in demand for manufactured goods in the coming months.
PMPA’s own Business Trends Report for December 2017 and year end summary reported that our companies’ sales were up 6.8% over calendar year 2016’s levels. This January ISM PMI report continues the positive outlook for manufacturing. PMPA Year End Summary Blog Post
ISM Press Release
Calculated Risk Chart of January 2018 ISM PMI