Economic Recovery Continues in 2010: Institute for Supply Management
Manufacturing purchasing and supply executives report that their companies are currently operating at 70.1 percent of normal capacity. This is an increase when compared to April 2009 (67 percent) and less than the rate reported in December 2008 (75.2 percent). The November data from the monthly Manufacturing ISM Report On Business® indicates the manufacturing sector is in its fourth month of growth. The following 11 industries — listed in order — are operating above the average capacity of 70.1 percent: Paper Products; Food, Beverage & Tobacco Products; Apparel, Leather & Allied Products; Miscellaneous Manufacturing(a); Chemical Products; Petroleum & Coal Products; Wood Products; Textile Mills; Plastics & Rubber Products; Electrical Equipment, Appliances & Components; and Computer & Electronic Products.
Non-manufacturing supply executives report that their organizations are currently operating at 81.3 percent of normal capacity. This is higher than the 80.1 percent reported in April 2009, and lower than the 83.1 percent reported in December 2008. Considering production capacity increases reported in the following section of this forecast, this indicates that non-manufacturing industries are continuing to add capacity, but also find it necessary to maintain their utilization of capacity at a relatively high level. The following 10 industries — listed in order — are operating at or above the average capacity level of 81.3 percent: Information; Other Services(b); Educational Services; Public Administration; Real Estate, Rental & Leasing; Utilities; Health Care & Social Assistance; Transportation & Warehousing; Professional, Scientific & Technical Services; and Finance & Insurance.
Production capacity in manufacturing decreased 5 percent in 2009 as 26 percent of purchasing and supply executives reported an average capacity increase of 15 percent, 34 percent reported decreases averaging 25.8 percent, and 40 percent reported no change. This compares to a predicted decrease of 8.4 percent for 2009 made in April 2009. Expectations for 2010 are for an increase of 2.7 percent. The following six industries — listed in order — report achieving an increase in production capacity in 2009: Nonmetallic Mineral Products; Printing & Related Support Activities; Food, Beverage & Tobacco Products; Furniture & Related Products; Miscellaneous Manufacturing(a); and Computer & Electronic Products.