U.S. manufacturing sector grows moderately; prices paid at record high-ISM; US manufacturing: Too hot to handle; UK manufacturing growth slows down in June but remains high; How is digitalisation transforming the manufacturing Industry?
U.S. manufacturing sector grows moderately; prices paid at record high-ISM
U.S. manufacturing activity grew at a moderate pace in June, but employment contracted for the first time in seven months, likely because of rampant shortages of raw materials and labor.
The Institute for Supply Management (ISM) said on Thursday its index of national factory activity slipped to 60.6 last month, the lowest reading since January, from 61.2 in May. A reading above 50 indicates expansion in manufacturing.
US manufacturing: Too hot to handle
The production index actually rose to 60.8 from 58.5, which was a surprise given the well publicised supply chain issues hitting the sector. However, the fact is the manufacturing sector is struggling to keep pace with the scale of demand. New orders continue to flood as indicated by a 66.0 reading while the backlog of orders continues to surge, although at a slower pace than in May.
UK manufacturing growth slows down in June but remains high
Export demand was buoyed as economic conditions across the world improved markedly. The closely monitored IHS Markit CIPS manufacturing purchasing managers’ index dropped to 63.9, down from 65.6 in May, a record high. However, it remains well above 50, the level that indicates stagnation.
Source: UK Investor.
How is digitalisation transforming the manufacturing Industry?
Manufacturing is going through a digital transformation that can dramatically increase efficiency, productivity and accuracy.
Advice for a successful digitalisation strategy:
- identify digitalisation objectives;
- formulate a digitalisation strategy;
- select the appropriate technology enablers;
- establish technology leadership; and
- train your staff and introduce a digital culture.
Source: The Manufacturer.