Despite Tariffs, U.S. Manufacturing Strong

Niagara Specialty Metals, Akron, NY

Niagara Specialty Metals, Akron, NY

The Institute for Supply Management’s PMI, a closely-watched manufacturing measure, rose to 59.3 for November signaling continued strong growth.  New Orders, Production and Employment all increased, while Prices dropped 10.9 points to 60.7, though still “indicating higher raw materials prices for the 33rd consecutive month.”  Overall, 13 of 18 manufacturing sectors reported growth with only Printing, Nonmetallic Mineral Products and, surprisingly, Primary Metals reporting contraction.  Many survey respondents noted emerging strains in the system:

  • “Shortages, longer lead times and capacity constraints and tariffs continue to strain the supply chain and disrupt normal business…” (Computer & Electronic Products)
  • “Trade tariffs and commodity increases have greatly affected our ability to remain competitive…”  (Machinery)
  • “Tariffs impact is fully reflected in Q3 results, and initiatives are underway to move work out of China…” (Miscellaneous Manufacturing
  • “A lack of experienced workers is having an impact on production…” (Fabricated Metal Products)

 

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