Manufacturing Industry Executives Predict 5.7% Growth in 2019

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From MDM:

Economic growth in the United States will continue in 2019, say the nation's purchasing and supply management executives in the December 2018 Semiannual Economic Forecast. Expectations are for a continuation of the growth that began in mid-2009, as indicated in the monthly ISM Report On Business. The manufacturing sector is optimistic about growth in 2019, with revenues expected to increase in 17 manufacturing industries. The non-manufacturing sector also indicates that 17 of its industries will see higher revenues. Capital expenditures, a major driver in the U.S. economy, are expected to increase by 6 percent in the manufacturing sector and by 3.4 percent in the non-manufacturing sector. Manufacturing expects that its employment base will grow by 2.4 percent, while non-manufacturing expects employment growth of 2 percent.

Manufacturing expectations for 2019 are positive, as 64 percent of survey respondents expect revenues to be greater in 2019 than in 2018. The panel of purchasing and supply executives expects a 5.7 percent net increase in overall revenues for 2019, compared to a 5.1 percent increase predicted for 2018 over 2017 revenues. The 17 manufacturing industries expecting revenue improvement in 2019 over 2018 — listed in order — are: Miscellaneous Manufacturing; Wood Products; Fabricated Metal Products; Printing & Related Support Activities; Primary Metals; Nonmetallic Mineral Products; Apparel, Leather & Allied Products; Transportation Equipment; Furniture & Related Products; Chemical Products; Electrical Equipment, Appliances & Components; Paper Products; Computer & Electronic Products; Textile Mills; Machinery; Food, Beverage & Tobacco Products; and Plastics & Rubber Products.

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Skills Gap Could Cost US Economy $2.5 Trillion over the Next Decade

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According to Deloitte and the Manufacturing Institute, the US economy could lose up to $2.5 trillion over the next decade because of 2.4 million jobs going unfilled. Those jobs will go unfilled because of an anticipated lack of skilled workers.

Read the Industry Week article (there is a link to the Deloitte study in the article) to see how some companies are ensuring knowledge transfer to close the skills gap and to see what action steps your organization can take right now.

Producer Price Index Rises 0.6% in October; Largest Jump in 6 Years

According to MDM, The Producer Price Index for final demand increased 0.6 percent in October, the largest jump in six years, according to the U.S. Bureau of Labor Statistics. Final demand prices advanced 0.2 percent in September and declined 0.1 percent in August. On an unadjusted basis, the final demand index increased 2.9 percent for the 12 months ended in October.

For more information, click here.

October Manufacturing Employment Increased by 32,000 Jobs

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According to Industrial Supply Magazine, factory employment increased by 32,000 in October, while the construction industry added 30,000 jobs.

Most of the increase in manufacturing occurred in durable goods manufacturing, with a gain in transportation equipment (+10,000). Manufacturing has added 296,000 jobs over the year, largely in durable goods industries.

Construction employment rose by 30,000 in October, with nearly half of the gain occurring among residential specialty trade contractors (+14,000). Over the year, construction has added 330,000 jobs.

Total nonfarm payroll employment rose by 250,000 in October, and the unemployment rate was unchanged at 3.7 percent, the U.S. Bureau of Labor Statistics reported today.

US GDP Grows Above-Forecast 3.5% on Consumption, Inventories

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From Industry Week:

The U.S. economy expanded at a 3.5% pace in the third quarter as consumers opened their wallets, businesses restocked inventories and governments boosted spending, marking the strongest back-to-back quarters of growth since 2014.

The annualized rate of gains in gross domestic product compared with the 3.3% median estimate in a Bloomberg survey and followed a 4.2% advance in the prior three months, according to Friday’s report from the Commerce Department.

To see the full Industry Week article, click here.

Record Breaker: IMTS 2018 Largest Show Ever!

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The 32nd edition of the International Machine Tool Show drew a record registration of 129,415 people and featured 1,424,232 sq. ft. of exhibit space representing 2,123 booths and 2,563 exhibiting companies. IMTS 2018 ran from Sept. 10-15 at Chicago's McCormick Place. Previous records were 121,764 registrants (IMTS 1998), 1,415,848 sq. ft. of exhibit space (IMTS 2000), 1,808 booths (IMTS 2016), and 2,407 exhibiting companies (IMTS 2016).

For more information, click here.

The IDC-USA/Affiliated Distributors Merger Adds 76 New Members to the AD Family

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From Industrial Supply Magazine:

IDC-USA merges with AD

AD announced the merger with IDC-USA, effective Jan. 1, 2019, bringing together the two largest independent bearings & power transmission buying/marketing groups in the United States.

IDC-USA adds 76 new members with 250 branch locations to the AD family, as well as redistribution centers in Indiana and Nevada and 27 employees.

“Voting to join AD was an easy decision for me, as I suspect it was for the majority of my fellow IDC independents," said Chris Hughes, board chairman of IDC-USA and president of Transmission & Fluid Equipment Inc., based in Fort Wayne, Indiana. "Frankly, with AD’s recent transition to a member owned organization, it made the decision that much easier. By merging IDC into AD, we get the best of both worlds; programs and services we value from IDC, expanded supplier and member relationships, and the multi-divisional scale and infrastructure of AD. It’s a win–win for all independent distributors.”

Ryan Watts, AD Bearings & Power Transmission board chair and president of Apex Industrial Automation, Downers Grove, Illinois, said, “This merger certainly helps to strengthen the industry on many fronts. The critical mass of our combined membership will enable us to support our supplier partners even more than we already do. In addition, the opportunity to network and share best practices with so many quality independent distributors provides perhaps, the most powerful aspect of being with AD.”

As a part of the merger, IDC-USA president and CEO George Graham will take on the role as president of the AD Bearings & Power Transmission Division.

“I am very pleased to have helped bring about this unification of great independents," said Graham. "The Bearings & Power Transmission industry is highly consolidated with strong national chains that we highly respect. But there’s a place in this industry for independent distributors too, and there always will be. In fact, we hope that distributors not currently aligned with a group will consider joining this new AD Division.”

He added that he is excited to join the AD team and the engaging culture they work so effectively to build. "AD Industrial president, Jack Templin and AD chairman and CEO, Bill Weisberg, handled this merger with total respect and professionalism. Everyone I meet at AD has the single focus to help their members, supplier partners and associates to grow and prosper.”

Bill Weisberg, AD Chairman & CEO, said, “We are honored to welcome IDC-USA members, suppliers and staff into the AD family. A major component of our strategy is to provide value added services to support the overall growth of our members and suppliers. Over the last 37 years, we’ve done six startups and now eight mergers and the resulting scale brings real value to our owner members and partners. I continue to see solid growth in the years ahead – both in terms of our footprint, as well as our range of services.”