Dayton Business Journal...
Manufacturing industry slows growth
by Joe Cogliano
Monday, August 1, 2011 

The industry grew in July, but at a much slower rate than in previous months, according to the latest report from the Institute for Supply Management. 

The PMI, the institute’s index to measure the strength of the industry, hit 50.9 percent last month, a drop of 4.4 percentage points compared to June. A reading above 50 percent indicates the manufacturing economy is generally in a period of expansion while a reading below 50 indicates a general contraction of the industry. 

Most notable among the individual factors that make up the PMI was the index for new orders, which indicated contraction for the first time since June, 2009. 

Note: Click here for a database of many Ohio-made products. 

The data and comments from survey respondents point to a short-term slowdown in domestic demand, said Bradley Holcomb, chair of the institute’s manufacturing business survey committee, in a statement. 

The good news is that price pressures appear to be subsiding and export orders remain strong, Holcomb said. 

While down, the PMI in July still marked 24 consecutive months of growth. 

Of 18 manufacturing sectors, 10 reported growth in July including paper products; transportation equipment; printing and related support activities; fabricated metal products; and wood products. Seven sectors saw a contraction last month including apparel, leather and allied products; food, beverage and tobacco products; and chemical products. 

Manufacturing is critical to the Dayton region because it represents 100,000 employees in the 12-county region surrounding Dayton and contributes $4.7 billion in annual payroll and $32 billion in annual sales, according to a Wright State University study commissioned by the Dayton Tooling and Manufacturing Association . 

Companies with significant local operations include General Electric , Illinois Tool Works and Emerson Climate Technologies, part of Emerson Electric Co. 

Several manufacturing companies are growing their Dayton-area presence. Caterpillar Inc. recently opened a distribution center in Clayton and is ramping up to more than 500 employees during the next few years, while Honda Motor Co. is working on several expansion projects in Shelby and Logan counties. 

And the region is home to several large manufacturing company headquarters, with AK Steel Holding , Thor Industries Inc. Robbins and Myers Inc. all based here and employing thousands of workers in the region. 

Read it with links at the Dayton Business Journal