The manufacturing sector is still growing, but a little less in June than in May. The manufacturing PMI was 60.6% in June, according to the Institute of Supply Management, down 0.6% from May. Anything over 50 indicates growth. More and more for a 13e consecutive month was the price index, which at 92.1 is now at its highest level since 1979.
Demand remains strong as the economy recovers from the COVID-19 pandemic, but supply chains are still lagging behind as different sectors and regions of the world recover at different rates.
âSupply chain constraints, from mechanics to electronics (products), continue to be difficult, from an availability and logistics perspective. Inflationary pressure on materials due to the imbalance of supply and demand. Electronic components are by far the biggest challenge, with lead times ranging from 16 weeks to over 52 weeks. The processors are a critical shortage, which led us to work 24/7 to redesign PCB assemblies to change components. We are extending our purchase order coverage over 12 months in many cases and are committing to non-cancellable and non-returnable terms (NCNRs) to secure supply, âsaid the Computer and Electronic Products subsector.
Production is 100% in the transportation equipment sector as COVID-19 restrictions have mostly been lifted, but the shortage of microchips is changing production schedules and limiting functionality.
âDemand continues to be strong and customer order models are evolving to include long-term demand. Customers are now placing orders for Q4 2021 and Q1 2022 due to global supply chain issues, âthe Fabricated Metal Products segment said.
Rising prices, the supply chain and lack of available labor continue to affect all manufacturing sectors, as well as almost all other industries as the economy recovers. âWe continue to be oversold, based on what we are currently able to produce. The lack of manpower is killing us, âsaid the primary metals sector.