Manufacturing in the U.S. has faced its fair share of challenges over the last three years as recession conditions persist. Now in its eighth straight month of contraction, trade uncertainty, weak demand, and rising costs are worsening negative perceptions across the sector.
With the ISM index at 48.7, the sector continues to hover around the recession zone, which is leading to factories holding back and cautious decision making related to expansions and hiring. In fact, hiring freezes and layoffs are becoming the norm, as are longer supply delivery times and rising prices for materials, which are adding pressure to manufacturers whose margins remain tight.
The greatest impacts have been seen in textiles, wood products, chemicals, and machinery, while primary metals, transportation equipment, and metal products are starting to show faint signs of recovery.
