Just the Facts
As we enter the New Year, strong market conditions continue in the automotive, aerospace, energy, and medical industries, where leading original equipment manufacturers and their suppliers are looking for better ways to improve productivity. They are making investments in the newest technologies to help them meet their goals. Even though some sectors show subtle signs of slowing, the 2015 business outlook for manufacturing looks very good according to Bradley Holcomb, the chairman of the Institute for Supply Management’s manufacturing business survey committee, who points out that:
- Manufacturing industry revenues are forecasted to increase 5.6 percent vs. 3.6 percent over 2014.
- Production capacity in 2015 should also increase to 5.6 percent vs. 5.3 percent over 2014.
- Capital expenditures in 2014 were really high 14.7 percent. 2015 will come back down to 3.7 percent, a very fluid estimate.
- Raw material prices should be similar to 2014, around 1.5 percent in 2015.
- Labor + benefits should increase by 3.2 percent, not much more than 2014.
- Employment in manufacturing labor is should increase by 1.5 percent.
- Growth is expected in both U.S. imports and exports.
- The U.S. dollar should increase against other currencies.
- The overall outlook is very optimistic that 2015 will be the same or better than 2014 in manufacturing.
In this issue, industry executives discuss current and future trends, critical issues, and share their personal insights into the 2015 business outlook for metal manufacturing. And we take a look at some of the new equipment that has been introduced to kick off the New Year with a bang.
