Riding the Manufacturing Industry’s Ups and Downs
After last month’s disappointing ISM Index returns, this month’s score may or may not cause a concern. For those of the doomsday variety it’s increasingly easy to start making assumptions regarding if the global slowdown could signal a recession in the U.S. For years, the U.S. continues to make slight gains, but it seems these are never significant enough to allow the naysayers to drop their worries. In November, CNN Money speculated that the fourth straight month of decline in the ISM Manufacturing Index could mean a downturn for the industry. The ISM Manufacturing Index, considered the barometer of the industry, showed a November reading of 50.1, just slightly above where the real worry starts to kick in.
Contributions to Sluggish Demands
- Continued drop in the price of oil and gas
- An apathetic global economy, including China
- Prolonged strength of the U.S. Dollar
New Strength within the U.S. Economy
Low gas prices and the strength of the U.S. dollar generally mean good things for consumers at home, but when considered from a global perspective they take on a different meaning. Both of these elements make the import of American goods more expensive, particularly for Asian and European markets. Rather than focusing on aspects that we have no control over, it might be smart to instead see the positive aspect of another industry that’s currently driving the U.S. economy. For years, consumers thought of manufacturing as the heart and soul of America but increasingly that’s being replaced by another behemoth, the service industry. Currently, the service industry is the overwhelming driver of the U.S. economy. Strategists recognizing this believe the service industry’s strength could help offset the lulls currently seen in the manufacturing industry.
Ruling the U.S. Economy
An unbelievable 80 percent of U.S. employment comes from the service industry, according to Advameg’s Encyclopedia for Small Business. These jobs include, but are not limited to, delivering goods, accounting, education, hospitality services, and health care. Any more it’s hard to think of too many jobs that don’t provide some kind of service. Even within the manufacturing industry, service is an extremely important aspect of creating new innovations and growing and maintaining customers.
At Cleveland Deburring Machine Company (CDMC), we believe the changes happening in the manufacturing and service industries are an incredible opportunity to provide our customers with the best customer service available. As a trusted supplier of deburring services for high-volume, repeatable processes and flexible solutions, we understand it’s imperative that CDMC places a premium on quick delivery, cost-effective solutions, and superior customer service.