REGIONAL REPORT as firms have struggled to keep up with demand . In the most recent Institute for Supply Management ® report , supplier deliveries were the slowest since April 1974 , with indices for the backlog of orders and customer inventories notching unfortunate new records .
“ Prices rose at the fastest rate since July 2008 . In addition , firms continue to note challenges with finding talent , and yet manufacturing job openings have soared to new record levels ,” added the NAM .
“ Rising raw material costs once again topped the list of primary business challenges in the first quarter , cited by 86.6 % of respondents . In addition , manufacturers predict 7.5 % growth on average for input costs over the next 12 months , the fastest pace since the question was added to the survey in the second quarter of 2018 . Respondents expect product prices to rise 5.6 % on average between now and this time next year , a new record in the more than 23 years that this survey has existed ,” it continued .
Industrial production
The IHS Markit US Manufacturing PMI was revised higher to 63.4 in July 2021 from a preliminary of 63.1 , hitting a fresh record high . Overall growth was supported by stronger expansions in output and new orders , with the latter increasing at the second-fastest pace ever . Unprecedented supplier shortages and delays continued to exert upward pressure on input costs and stymie firms ’ ability to process incoming new work . As a result , cost burdens rose at a record-breaking rate and the accumulation of backlogs accelerated . Nonetheless , output expectations remained upbeat amid hopes of further boosts to client demand over the coming year .
According to the U . S . Federal Reserve , industrial production increased 0.4 per cent in June after moving up 0.7 per cent in May . In June , manufacturing output edged down 0.1 per cent , as an ongoing shortage of semiconductors contributed to a decrease of 6.6 percent in the production of motor vehicles and parts . Excluding motor vehicles and parts , factory output increased 0.4 per cent . The output of utilities advanced 2.7 per cent , reflecting heightened demand for airconditioning , as much of the country experienced a heat wave in June . The index for mining increased 1.4 per cent . “ For the second quarter as a whole , total industrial production rose
Chicago is the venue for FABTECH 2021 ( credit : Pedro Lastra , Unsplash ).
The Cloud Gate metal sculpture in Chicago , USA ( credit : Lance Anderson , Unsplash ).
at an annual rate of 5.5 per cent . Manufacturing output increased at an annual rate of 3.7 per cent , despite a drop of 22.5 per cent for motor vehicles and parts . At 100.1 per cent of its 2017 average , total industrial production in June was 9.8 per cent above its year-earlier level but 1.2 per cent below its pre-pandemic ( February 2020 ) level . Capacity utilisation for the industrial sector rose 0.3 percentage point in June to 75.4 per cent , a rate that is 4.2 percentage points below its long-run ( 1972 – 2020 ) average ,” said the U . S . Federal Reserve .
“ Market groups posted mixed results in June . The drop in motor vehicle output contributed to decreases in consumer goods and business equipment . Defence and space equipment posted the largest gain among market groups , advancing 4.4 per cent . The index for
Firms continue to note challenges with finding talent , and yet manufacturing job openings have soared to new record levels materials advanced 1.0 per cent as a result of a gain in energy materials ,” it added .
“ In June , manufacturing output edged down 0.1 per cent and was 0.8 per cent below its pre-pandemic level . Production of durable goods slipped 0.2 per cent ; in addition to the drop for motor vehicles and parts , declines of more than 1.0 percent were recorded by non-metallic mineral products and by electrical equipment , appliances and components . The output of nondurable goods rose 0.2 per cent . Capacity utilisation for manufacturing declined 0.1 percentage point in June to 75.3 per cent .”
Metalforming in focus
Metalforming companies anticipate little change in business conditions during the next three months , according to the July 2021 Precision Metalforming Association ( PMA ) Business Conditions Report . Prepared monthly , the report provides an economic indicator for manufacturing , sampling 124 metalforming companies in the United States and Canada .
PMA ’ s July report shows that 36 % of metalforming companies forecast an improvement in economic activity in the next three months ( the same percentage as reported in June ), 55 % predict no change ( compared to 52 % in the previous month ) and 9 % anticipate a decline in activity ( decreasing from 12 % in June ).
Sixty-three per cent of respondents reported an increase in lead-times , slightly down from 66 % in June .
“ PMA members continue to report significant problems in finding the raw materials needed
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