Manufacturing slipped last month in the United States as evidenced by The Institute of Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI) figures. Those U.S. numbers dropped from 51.2 in the previous month to 49.1 in August 2019. This fell short of market expectations of 51.1.
This latest manufacturing reading was the first month of decline in the manufacturing sector in nearly three years. The 35 month long stretch of expansion came to a halt in August. However, the momentum of manufacturing expansion has actually been slowing in the last four months.
One major reason for this decline is the current U.S.-China trade war. The conflict has caused a steep contraction in new export orders. Chain adjustments have most likely been a drag on manufacturing data as a result of moving manufacturing base from China Supply. Overall sentiment touched its lowest level in 2019 per trading economics.
50% of Manufacturing Industries Still Showed Growth!
On the bright side, nine out of the 18 manufacturing industries reported did show growth in August. These included:
1. The machinery industry, particularly machinery, equipment and engineering products, which grew.
2. Textile Mills and Furniture & Related Products were among the ones that saw growth last month. For example, Home Depot showed a lot of jobs promise.
3. Food, Beverage & Tobacco Products also grew last month. These are companies principally engaged in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies. Starbucks, Tyson Foods and Hershey are the top three holdings in the fund.
4. The Petroleum & Coal Products industry also saw expansion. In particular companies involved in coal operation, transportation of coal, production of coal mining equipment as well as from storage and trade.
Manufacturing Jobs Recruiting Needs More Stimulation
Additional job recruitment is needed even though last month’s U.S. Labor Department job figures displayed another record. It was the 107th straight month of jobs creation with 130,000 new jobs created. Manufacturing jobs creation has assisted this record employment thrust. Unfortunately, the trade war with China has helped slow it down.
China has been an increasingly predatory thorn in our side. This includes their successes in exterminating our manufacturing base and stealing our intellectual property (IP). However, this conflict must be resolved or else it will damage our economic well-being as well as our country’s recruitment of more jobs.
Our Recruiting And Staffing Consulting Team Can Help
Strategic Search Corporation can help you recruit key talent for your staffing needs. Our vast experience helps you uncover the best manufacturing candidates for your recruiting needs. Additionally, we also ensure our presented candidates will provide you more useful information during your job interviews due to our trademarked interview preparation process.
Call me today at 312-944-4000 to discuss how we can assist with your manufacturing recruiting and staffing needs. Or click here for my full contact information.
