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U.S. Factories Power Though Supply Chain Constraints

For 16 months the U.S. manufacturing sector has expanded in spite of – rather than thanks to – the global supply chain. The U.S. PMI in September increased by 1.2 percent to 61.1, according to the Institute for Supply Management. However, concern regarding the semiconductor shortage reached its highest level so far this year, said…

Sales Outlook Moderates for Components

Long-term demand for electronic components remains robust although sales expectations for the third and fourth quarters have moderated, according to the ECIA. Concerns and uncertainty related to the economy, inflationary pressure and the resurgence of Covid-19 with potential shutdowns could account for the continuing shift of sentiment, said Chief Economist Dale Ford in a release.…

Tech Leads August U.S. Manufacturing Expansion

U.S. manufacturing powered through supply chain constraints in August to maintain a 15-month streak of expansion. New order and production levels underlined sustained demand while factories continued to struggle to find components, materials and workers. Tech companies led growth in August despite semiconductor and other supply shortages. The Institute for Supply Management’s PMI increased 0.4…

Manufacturing Activity Eases Slightly in July

The pace of U.S. manufacturing growth cooled a bit in July as factories continued to struggle with labor and supply constraints. But some pressures appear to be easing: prices paid by manufacturers declined 6.4 percent between June and July, according to the Institute for Supply Management, and factory employment increased. Overall, the nation’s PMI decreased…

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Electronics Leads June Expansion Amid Supply Chain Woes

The computer and electronics industry fueled U.S. manufacturing expansion in June but continues to struggle with shortages, price hikes and logistics bottlenecks, procurement managers told the Institute for Supply Management (ISM). Components are by far the biggest challenge, one buyer said, with lead times going from 16 weeks to 52-plus weeks. “Processors are a critical…

Executives Increase Supply Chain Risk Concerns

Executives remain optimistic about the global economy at the close of Q2, but not every region is benefiting equally from Covid-19 vaccination rates and re-opened businesses. IPC has raised its outlook for the United States, Europe, Mexico, Australia and Taiwan but notes Japan, India, Indonesia and Turkey continue to struggle. A recent McKinsey survey likewise…

Factory Activity Rises Despite Supply & Labor Constraints

The U.S. manufacturing sector continued its expansion in May, but shortages of components, raw materials and labor are constraining factories’ ability to meet skyrocketing demand. “Supplier performance — deliveries, quality, it’s all suffering,” a tech executive told the Institute for Supply Management. “Demand is high, and we are struggling to find employees to help us…

Tips for Expediting the Supply Chain Backlog

There is no end in sight for global supply delays stemming from trade restrictions and transportation logjams. Demand continues to rise for U.S.-manufactured goods, but raw material and component disruptions are hindering production expansion. “Recent record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to…

Manufacturing Optimism Grows for Remainder of 2021

Purchasing and supply executives expect manufacturing growth will continue for the rest of 2021 with several metrics – capacity, capital expenditures and revenue – exceeding forecasts of late 2020. There is hope that the corner has been turned on the coronavirus pandemic, according to the Institute for Supply Management, and both the U.S. manufacturing and…

April PMI: Demand Bumps Up Against Supply

Labor and supply constraints continue to limit U.S. manufacturing momentum even as demand remains robust. The nation’s leading factory index, the PMI, declined 4 percent in April, but depleted customer inventories and increasing factory backlogs bode well for the long-term health of the industry. “Recent record-long lead times, wide-scale shortages of critical basic materials, rising…