04 Mar Manufacturing is seeing a boost
Manufacturing is seeing a boost despite an overall dip in manufacturing production this winter. The Institute for Supply Management said that a spike in orders last month, along with boosted stockpiles mean a boost for the industry.
The Associated Press reported on the institute’s study recently, saying that the Institute of Supply Management’s manufacturing index rose in February to 53.2. That’s up two points from January which saw a 5 point drop from December. Any number above 50 is a signal that the industry is growing.
Additionally, 14 out of 18 industries that the survey tracks reported growth. January only 11 reported growth. Economists say the heavy winter weather is to blame for the early 2014 production dip.
“We expect a substantial rebound … when weather patterns eventually normalize,” the AP quote’s Joseph LaVorgna, an economist at Deutsche Bank.
The weather also disrupted the shipping of raw materials which has left the manufacturers on thin ice for supplies needed to produce goods, said Bradley Holcomb, chair of the ISM’s survey committee. This slowed production, more parts sat unused and inventories swelled.
While manufacturing is seeing a boost after a tough January, many organizations will be considering new software to help streamline processes while gaining agility. Being able to make fast decisions based on real time and react to market changes quickly is critical. Microsoft Dynamics AX can bring this to your organization.