October 28, 2024 at 02:31PM
Prior was -9.0
Output (production) +14.6 vs -3.2 prior
New orders -3.7 vs -5.2 prior
Employment -5.1 vs +2.9 prior
Outlook -3.3 vs -6.4 prior
Prices paid for raw materials +16.3 vs +18.2 prior
Prices received +7.4 vs +8.4 prior
Wages +23.5 vs +18.5 prior
Comments in the report:
Chemical manufacturing
Interest rate impacts continue to put pressure on the overall
construction markets and auto industry, which are major customers of
the basic materials space.
Chinese producers are selling chemicals products at prices that are, in some cases, lower than our production costs in the U.S.
Computer and electronic product manufacturing
We need more interest rate cuts on leasing capital equipment to see a difference in our industry. Rates are still too high.
Fabricated metal product manufacturing
We are expecting a continued period of lower demand and
production over the next six to 12 months. We have flexed down our
workforce and supplier purchases accordingly.
Food manufacturing
We are experiencing inflation-related increases in the cost of
doing business across the spectrum of operations with no real way to
recoup or have margin protection.
Sales volume is below projections for fourth quarter 2024.
Geopolitical instability is increasing throughout the world, and the
U.S. presidential election may create more instability.
We are seeing increased demand for our products, which is driving the increase in our production.
Furniture and related product manufacturing
We have continuous problems with homeless encampments and
property damage at our business location. The city of Dallas holds
property owners responsible for cleaning up encampment sites, which are
gone one day and back the next. We have to start the entire process
over again. This is definitely time wasted for productivity as we have
to use our own employees to clean up the sites.
Machinery manufacturing
Business remains slow; however, we are
hopeful that after the election, business will pick up (if the “right”
candidate wins).
Geopolitical conflict and aggression wreaks havoc with our
planning. Our own election outcome cannot be known soon enough. We have
prospective deals of significance on hold pending who takes office.
Overall, it’s been a really rough year through no apparent fault of our
own, but our pivots have yet to yield favorable results despite being
as nimble as possible. Hopefully, 2025 will be a year of jubilation!
Miscellaneous manufacturing
A prominent slowing of business began in October 2023, and it has
continued to trend lower month over month for the last 12 months.
We are looking forward to some unity in the country and getting
past the election and back to business. We need interest rates to come
down and stay low for planning 2025, otherwise we will be having a
challenging environment next year.
Paper manufacturing
Orders and the outlook are trending down at the time.
Primary metal manufacturing
We are investing in plant, equipment and processes to add new product offerings to improve business conditions.
Printing and related support activities
We are now in month two of much slower business activity,
something we have avoided for the previous 10 months. Hopefully, things
will pick up soon, or else we will need to reduce head count in the
plant. Naturally, this comes just as a huge capital expenditure machine
has arrived and is in the process of being installed and training
beginning.
Textile product mills
We’ve had a strong October across all buying sectors, which makes
us feel better about the short-term market. Long-term uncertainty is
still high and unchanged; we’ve heard there’s a lot of uncertainty with
the election and a potential East Coast dock strike.
Transportation equipment manufacturing
Our outlook is predicated on the election outcome.
This article was written by Adam Button at www.forexlive.com.
