A majority of U.S. manufacturing executives expect their sales will grow a little more than 9 percent for the rest of 2014, according to the Institute of Supply Management’s semi-annual survey of purchasing and supply managers.
Of the 18 industries predicting growth, computer and electronics products fall a disappointing 12th on the list. Textile manufacturers expect the most growth during 2014.
Sixty-eight percent of respondents to the survey predict their revenue will be 9.1 percent greater in 2014 compared to 2013; nine percent expect a 9.6 percent decline; and 23 percent foresee no change.
“With all 18 industries within the manufacturing sector predicting growth in 2014, when compared to 2013, U.S. manufacturing continues to demonstrate its broad-based strength, efficiency and leadership in the world economy,” said Bradley J. Holcomb, chair of the ISM Manufacturing Business Survey Committee.
The average expectation of revenue growth, said the ISM, is 5.3 percent, which is a notable increase of 0.9 percentage point from December 2013 when the panel predicted a 4.4 percent increase in 2014 revenues. With operating capacity at 82.3 percent, the association reports, an expected capital expenditure increase of 10.3 percent, prices paid expected to increase a modest 0.2 percentage point from now through the end of 2014, and employment expected to grow 1.5 percent for the balance of 2014, manufacturers are positioned to grow revenues while containing costs through the remainder of the year.
The 18 industries reporting expectations of growth in revenue for 2014 — listed in order — are: textile mills; printing and related support activities; furniture and related products; food, beverage and tobacco products; fabricated metal products; transportation equipment; plastics and rubber products; paper products; miscellaneous manufacturing; nonmetallic mineral products; chemical products; computer and electronic products; primary metals; petroleum and coal products; electrical equipment, appliances and components; wood products; machinery; and apparel, leather and allied products.