GENERAL NEWS
U . S . economic forecast for manufacturing
Economic improvement in the United States will continue in 2024 , according to the country ’ s Institute for Supply Management ® ( ISM ®) in its December 2023 ‘ Semiannual Economic Forecast ’. Revenues are expected to increase in 15 of 18 manufacturing industries and 16 of 18 services-sector industries .
Capital expenditures are expected to increase by 11.9 per cent in the manufacturing sector ( after a 14.9 per cent increase in 2023 ) and increase by 2.9 per cent in the services sector ( after a 4.2 per cent increase in 2023 ). In 2024 , employment is expected to grow by two per cent in manufacturing and 0.8 percent in services . After projected growth in manufacturing and a contraction in services in the first half ( H1 ) of the year , growth in the second half ( H2 ) is projected to accelerate in manufacturing and strongly re-emerge in the services sector .
Expectations for 2024 are positive , as 58 per cent of survey respondents expect revenues to be greater in 2024 than in 2023 . The panel of purchasing and supply executives expects a 5.6 per cent net increase in overall revenues for 2024 , compared to a 0.9 per cent increase reported for 2023 . Fifteen of the 18 manufacturing industries expect revenue improvement in 2024 .
“ Manufacturing ’ s purchasing and supply executives expect to see overall growth in 2024 . They are optimistic about overall business prospects for the first half of 2024
and more excited about faster growth in the second half . According to the ISM ® Report On Business ®, manufacturing grew for 28 consecutive months from June 2020 to September 2022 , was unchanged in October but dipped into contraction in November
2022 , with the index remaining in contraction until now . Respondents expect raw materials pricing pressure to ease in 2024 and see H1 2024 profit
U . S . steel worker ( image : Shutterstock . com ).
margins improving over H2 2023 . Wages and employment will continue to grow . Manufacturers also predict growth in both exports and imports in 2024 ,” said the ISM ®.
In the manufacturing sector , respondents report the companies operating at 83 percent of normal capacity , up one percentage point from the 82 per cent reported in May 2023 . Purchasing and supply executives predict that capital expenditures will increase year-over-year by 11.9 per cent in 2024 , compared to the 14.9 per cent increase reported for 2023 compared to 2022 . Manufacturers expect employment in the sector to grow by two per cent in
2024 relative to December 2023 levels , while labour and benefit costs are expected to increase by an average of 5.2 per cent . Respondents also expect the U . S . dollar to strengthen against the currencies of seven major trading partners in 2024 .
The panel predicts that prices paid for raw materials will increase by 3.2 per cent during the first five months of 2024 , with an overall increase of 3.3 per cent for 2024 . This compares to a reported 4.1 per cent increase in raw materials prices in 2023 .
“ Manufacturing purchasing and supply executives report their companies are currently operating at 83 per cent of normal capacity . This is a one-percentage point increase when compared to May 2023 ( 82 per cent ) and a decrease when compared to December 2022 ( 88.4 per cent ),” added the Institute .
“ Production capacity in manufacturing increased 0.7 per cent in 2023 , as 35 percent of purchasing and supply executives reported an average capacity increase of 9.8 per cent , 18 per cent reported an average decrease of 17.4 per cent and 47 per cent reported no change . This compares to a May 2023 predicted increase in production capacity of 0.4 per cent for 2023 . Expectations for 2024 are for an increase of 7.8 per cent ,” it added .
The U . S . manufacturing sector contracted in November for a 13th consecutive month , and the forecast indicates that this trend may reverse in the first half of 2024 with continued strengthening in the second half . n
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TRUMPF expands in India
Sheet metal specialist , TRUMPF , is expanding in India and building a new production facility . The factory will be based in Pune , in the state of Maharashtra in western India . TRUMPF is investing around five million euros in the new production facility . Production will begin this year and the aim is to produce 300 machines there every year .
“ India is developing strongly and has growth potential . The proximity to this emerging market allows us to produce more efficiently and respond more quickly to the needs of our customers there . In addition , the new location offers us the opportunity to take advantage of global synergies . In the long term , we want to supply additional markets from India and expand our supply chain ,” explained Till Kueppers , Chief Operating Officer , TRUMPF Machine Tools Germany .
“ This investment is the first step in our long-term growth strategy in India . Our customers benefit from high-quality products , we are closer to them and can better adapt to their needs ,” added Pradeep Patil , Managing Director , TRUMPF in India .
The plant will start with the TruBend 1000 series bending machines , followed by the TruLaser 1000 laser cutting machine series by 2025 . TRUMPF is also expanding its support infrastructure with a showroom in Bengaluru , which is scheduled to go into operation later this year . This is intended to strengthen its customer service . With a software research and development facility in Chennai , TRUMPF also offers comprehensive IT solutions . n
www . trumpf . com
6 | ismr . net | ISMR March 2024