Manufacturing is trending down, and tariffs aren ’t helping

The Institute for Supply Management (ISM) released its May Report on Business, showing its Purchasing Management Index (PMI) registered 52.1%, down from April’s 52.8%. While May’s PMI remains on the “expanding” side of the equation, (above 50%), that number has been dropping fairly steadily from a 12-month high of 60.8 in August of last year.
The ISM gauges 18 manufacturing industries, and many of the survey’s respondents commented on tariff issues as being a factor for the slow down in their industry. “Ongoing tariffs [are] impacting costs and influencing supplier realignment on country of origin. Border issue is causing delays in imports from Mexico,” said one respondent from the computer and electronics products industry.
Another respondent to the survey said, “Sales remain strong. Labor remains tight. Tariffs are having a significant impact on cost of goods.”
A respondent from the plastics industry segment noted: “Newly increased tariffs on Chinese imports pose an issue on a number of chemicals and materials that are solely produced in China. We are expecting increases in raw materials starting June 1.”
Trade issues with two of the United States’ biggest trading partners appear to be having an effect on the plastics industry. Charles A. Sholtis, CEO of Plastic...

Source: MDDI - June 5, 2019 Category: Medical Devices Tags: Plastics Today Source Type: news