New Factory Orders Reach All-Time High
According to a report released by the Census Bureau in June, new factory orders had risen in four of the first five months of 2014 to reach an all-time high of $503.2 billion in June. The year started out a bumpy one for manufacturers, as January’s figures were negatively impacted by severe winter weather felt all over the country. Meanwhile, May showed a decline of 0.6% in new factory orders. Luckily, June offset that nicely with a 1.1% jump, for a total increase in new orders for manufactured goods of about 4.6% for the first part of the year.
Unfortunately, thanks in part to the impact of winter storms on both shopping and shipping, the year-over-year growth of new orders for manufactured goods has been less robust, increasingly by only about 1.5%
Breaking down the numbers, the sales of durable goods improved dramatically in June, especially after lagging the month before. Since January, orders for durable goods increased by 8.2%, though a hard winter meant that they were actually down by 0.6 percent over the past 12-month period. Luckily, the increase in the last few months seems to indicate that the downward slope caused by the winter weather is behind us, and June’s increase of 1.7% seems to bode well for the future.
The big winners among durable goods ordered in June were electrical equipment and appliances with an increase of 5.5%, computers and electronic products as well as machinery, which were both up 2.9%, and furniture and related products, which climbed 1.6%. The reasons for these increases may be partially driven by increased confidence in a gradually improving economy.
As can probably be imagined, shipping increased along with orders. Factory shipments increased 2.1% since January, rising 0.5% in June. They also showed a 3.8% increase year-over-year.
All in all, the Census Bureau’s report looks like good news for manufacturers. But all those increases in new factory orders is going to mean an increase in production, which means that you’ll need to have the tools, equipment, and manpower to handle those increased demands. During lean times, it’s common sense to tighten belts and reduce costs, but as new demand floods in, you have to make sure that you have the infrastructure that you need to meet it.
Whether in the middle of a recession or the midst of a boom, manufacturing has always been a competitive market, and there’s never been a more important time than right now to make sure that your shop floor has the best and most up-to-date deburring machine solutions available. Proper deburring machines can reduce waste and expenses, improve the efficiency of your production, and make sure that your end-product is the best it can possibly be. That’s important as demand for your product increases, and it’s important to help make sure that the demand stays there, by ensuring that you produce the best product you can. Cleveland Deburring Machine Company is here to help!
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