Optimism Tempered with Concern

In February, U.S. supply chain executives responses to monthly Report on Business reported expansion after 26 consecutive months of contraction. The January manufacturing PMI registered at 50.9%, up from the seasonally adjusted 49.2% in December. The respondents are members of the Manufacturing Business Survey Committee of the Institute for Supply Management.

As metalworkers plan for the year ahead and what could be the beginning of an expansion cycle based on the way numbers are trending, according to the ISM, the potential effects of tariffs on supply chains and cost structures are front of mind. More than ever, your team should remain in constant contact with your suppliers to stay ahead of possible disruptions to a manufacturing economy that is relatively steady.

As tracked by ISM, “Four of the six largest manufacturing industries (petroleum and coal products; chemical products; machinery; and transportation equipment) expanded in January, up from none in December,” said Tim Fiore, chair of the ISM Manufacturing Business Survey Committee.

Responses from committee members included:

• Fabricated Metal Products: “Capital equipment sales are starting 2025 off strong. Normally, we see a soft start to the year, so this strong start is unusual.”
• Machinery: “Although we are in our busy season, our demand for the first two weeks of 2025 has outpaced normal levels for this period of time.”
• Primary Metals: “Automotive order demand continues to be consistent and on a steady pace. Beginning to look at hiring additional team members once again. Pricing is holding firm. Having to work overtime to cover plant inefficiency to date.”
• Electrical Equipment, Appliances & Components: “Business is slowly improving.”
• Transportation Equipment: “Alleviating supply chain conditions are noticeably pivoting back into acute shortage situations, with headwinds following. For aerospace and defense companies, critical minerals supply chains are tightening dramatically due to Chinese restrictions. Concerns are growing of an environment of more supply chain shortages.

Suppliers are reliable partners as you maintain a strong market presence, assisting as you continue to thrive. They understand firsthand your challenges and are able to respond with innovative solutions that speed up processes, accurately and precisely, saving time and money. Their experts and engineers, as well as testing and research facilities, bring resources to the table that you otherwise wouldn’t have. Perhaps your process requires just a tweak, or perhaps a new product or system — be it a cutting solution, software solution, robots/cobots, multitasking machine, new cutting tools, or improving a machine tending solution — suppliers provide improved options that enable you to increase throughput and reduce downstream processes.

With a manufacturing economy trending upward, suppliers stand ready to strengthen your fabricating and metalworking processes in the event of any disruptions and headwinds.

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