manufacturing, factories, ISM, US factories

Electronics Leads August’s Red-Hot Factory Activity

Following a slight cool-down period in July, the nation’s factory activity is running hot. The Institute for Supply Management’s domestic production index, the PMI, grew by 3.2 percentage points to reach 61.3 in August. Any number above 50 indicates expansion. Moreover, the ISM’s leading sub-indexes, new orders and production, surged. New orders registered 65.1 percent, an…

Electronic Component Shortages Will Worsen Through Q4

Electronic component supplies are only going to get tighter as 2018 approaches calendar Q4. Demand remains at or above normal levels in the automotive, IoT, and industrial markets; capacity ramp-up may not bear fruit until the end of the year or 2019; and tariffs are likely to unravel an already-stressed supply chain. Investment firms Morgan…

Tariffs Raise ‘Red Flag’ on Component Supply Risks

Electronics executives and industry experts are all over the map regarding the impact of U.S. and China tariffs on component supplies, OCMs, distributors and their customers. One thing is crystal clear – tariffs, or “taxes,” in one form or another are going to be passed on to buyers. Research and investment firm Morgan Stanley projects…

manufacturing, tariffs, factory,

U.S. Factory Activity Slows; Tariff Worries Accelerate

Even though U.S. manufacturing activity remains robust — the nation’s leading production index, the PMI, registered 58.1 percent in July — the industry’s concern over tariffs has reached a new high, according to the Institute for Supply Management. The demand picture for U.S.-made goods remains positive, said Tim Fiore, chair for the ISM’s manufacturing business…

electronics, components, tariffs

Tariff & Supply Anxiety Increase Even as Manufacturing Grows

U.S. manufacturing activity accelerated in June—but so did anxieties around electronic component shortages and tariffs. The Institution for Supply Management’s leading production index, the PMI, increased by 1.5 percent in June to 60.2. However, electronic component constraints are being felt across multiple manufacturing sectors. “Electronic component supply issues continue to disrupt production,” a transportation industry…

double ordering

Double Ordering of Electronic Components Hits ‘All-Time High’

Although the electronics supply chain has been dancing around the issue of double ordering for several quarters, a recent Morgan Stanley report finds there’s been a “significant uptick” in double ordering that has extended component lead times even further. Evidence of double ordering also has analysts questioning the sustainability of the current component-demand upcycle. “To…

manufacturing growth

Manufacturing Activity Slows as Tariff Concerns Grow

U.S. electronics companies are feeling the pressure of widespread component shortages, according to the Institute for Supply Management’s latest report. Although the overall U.S. manufacturing index — the PMI — remains robust, supply constraints and extended lead times have caused some computer and electronic companies to delay or even miss sales opportunities. “Supply constraints, extended lead…