Perhaps distance and perspective give them clarity.
We follow the ISM Manufacturing Index as an input for our sensemaking as to what is going on in Precision Machining. PMPA’s own Business Trends Report has shown sales in our industry to be recovering. So as we were considering the latest ISM Manufacturing Report, we came across this story from the Financial Post.
The U.S. manufacturing sector grew in October at its fastest pace since April 2006, according to the Institute for Supply Management. The ISM’s manufacturing index climbed to 55.7 from 52.6 in September. This is the third consecutive monthly reading above 50. BElow 50, the index indicates contraction in manufacturing, the line that divides expansion and retrenchment. Also unexpectedly, hiring plans in the beleaguered sector turned positive for the first time in more than a year.
Some economists say they were most encouraged by the signs of hiring in the sector. The employment index surged to 53.1 from 46.2. However PMPA’s survey of members showed that plans to add or recall workers were still nascent, and very dependent on further increases of orders.
According to PMPA’s respondents, “A further 50% increase in sales will result in in the majority of the precision machining industry’s laid off employees being recalled from layoff. A 25% increase is said to be likely to lead to the recall of about 39% of workers on layoff.”