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Dayton
Business Journal...
Manufacturing
sector takes unexpected slide
by Joe
Cogliano, Senior Reporter
Monday,
July 2, 2012
U.S.
manufacturing has taken an unexpected downturn.
The
industry went into contraction mode last month following 34 consecutive
months
of expansion, according to a Monday report from the Institute for
Supply
Management.
The PMI, an
index used to measure the strength of manufacturing, was at 49.7
percent in
June, a decrease of 3.8 percentage points compared to May. It marked
the first
time the index has fallen below 50 since July 2009, when the PMI was
49.2
percent.
A reading
above 50 percent indicates the manufacturing economy is generally in a
period
of expansion.
Other bad
news in June: the index for new orders dropped more than 12 percentage
points,
to 47.8 percent.
On the good
side, employment in manufacturing continues to grow, but at a slightly
lower
rate.
“Comments
from the panel range from continued optimism to concern that demand may
be
softening due to uncertainties in the economies in Europe and China,”
said
Bradley Holcomb, chair of the Institute for Supply Management
Manufacturing
Business Survey Committee.
Of the 18
manufacturing industries, only seven reported growth in June including:
furniture and related products; printing and related support
activities;
fabricated metal products; miscellaneous manufacturing; electrical
equipment,
appliances and components; machinery; and primary metals. The nine
industries
reporting contraction in June include: nonmetallic mineral products;
apparel,
leather and allied products; paper products; plastics and rubber
products;
chemical products; computer and electronic products; petroleum and coal
products; food, beverage and tobacco products; and transportation
equipment.
Manufacturing
is critical to the local economy because it represents 100,000 jobs and
accounts for tens of billions of dollars in annual sales in the
12-county
region surrounding Dayton, according to a Wright State University study
commissioned by the Dayton Region Manufacturers Association.
Many
manufacturers locally have been in growth mode.
Abbott
Laboratories is
building a $270
million plant and bringing 240 jobs to Tipp City. Other job gains
include 500
jobs at a new Caterpillar facility in Clayton and the ConAgra plant in
Troy
that is adding 200 jobs locally.
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and other articles at Dayton Business Journal
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