Cisco Blogs


Cisco Blog > Manufacturing

Happy New Year to the Manufacturing Industry from Cisco, 2013

January 4, 2013 at 12:56 pm PST

The numbers coming out month after month show that we seem to be tracking a slow but steady recovery. As I’ve said before, I’m cautiously optimistic about the manufacturing sector – especially in the USA.

On Thursday (3rd January, 2013), ADP1 said construction added 39,000 positions in December, second only to trade and transportation utilities, which grew 53,000. Medium- and larger-sized businesses led the way with 102,000 and 87,000 new jobs respectively

Overall, Employers added 1.84 million jobs in 20112, the most in five years. In the first 11 months of 2012, employers added 1.67 million. Job gains would have to top 170,000 in December to push 2012 ahead of the previous year. Some economists do expect gains at that level or higher.

Robot_factory_smallEven in Asia things are looking up. In the New Year we learned about China’s services growth3, as China’s official purchasing Managers Index (PMI) for the non-manufacturing sector rose to 56.1 in December from 55.6 in November, according to the National Bureau of Statistics (NBS). Other PMIs on the manufacturing sector suggest China’s growth is starting to pick up based on late 2012 data. Not the heady double-digit growth of earlier years, but increases none-the-less. Construction was also up, though all of this growth is partly owing to government investment. The Friday (4th January 2013) HSBC PMI report shows slower growth as it mainly focuses on the private sector. The HSBC report4 showed a softening from 52.1 to 51.7. As you know above 50 is still good. India’s looking good too re PMI for last month! Read More »

Tags: , , , , , , , , ,

Manufacturing Recovery? Who says?...

October 4, 2012 at 8:30 am PST

...well, it looks like several folks are saying it!

American Factories were going all out in September - is it a sign that the US economy is picking up?  Wall street certainly seemed to respond well to some key indicators at the beginning of October.

Take a look at some of the performance metrics below and you'll get an indication of why...

  • The ISM (Institute for Supply Management) Index (PMI™)  rose to 51.5 for September from 49.6 in August. Anything above 50 shows growth (growing rather than contracting), and a nearly two point rise reverses previous months declines, the fastest pace since May.
  • Pace is slow, but signs are hopeful. The new orders index rose from 47.1 to 52.3 suggesting humming production this month, and suggests November will be good too.

However...

  • The economy isn't growing as fast as the Fed Chairman would like. Hence an open-ended QE3 (Quantitive Easing 3) and a statement that interest rates will remain low until 2015.
  • JP Morgan Economists are saying that we've seen a slow down in US Manufacturing and it's tracking more like the overall US economic growth - sluggish, suggesting the best may be behind us. Still growing though, but slowly.

Overall I'm a bull on US manufacturing. There are a number of US companies looking to bring back jobs from overseas. But the labor shortage in the US is getting worse. Baby Boomers retiring, not enough skilled or trained workers to take their place. A recent Deloitte and The Manufacturing Institute study stated that manufacturing sector can't find workers with the right skills to fill around 600,000 jobs. Hopefully Cisco's Remote Expert and Cisco's other solutions will help. Check out Ron Kafka's blog titled "Realize Business-Wide Benefits with Cisco’s Remote Expert" to find more about Remote Expert. Read More »

Tags: , , , , , , , , , ,