A year ago, manufacturing executives expected that their 2012 plant sales would increase by 9% (median) and 10.5% (average), according the 2011 MPI Manufacturing Study.[1] Those projections may yet turn out to be true given recent U.S. Department of Commerce data. Despite a modest drop in value of manufacturing shipments from May to June this year, the value of all manufacturing shipments year-to-date rose 5.8% across all industries vs. 2011 (not seasonally adjusted).[2]
Both durable goods and non-durable goods shipments posted year-to-date increases, 9.1% and 3%, respectively. Primary metals lead the durable goods sector with a 20.9% increase; plastics and rubber products lead the non-durable goods sector with a 6.5% increase.[3]
Value of Shipments | ||
June 2012 YTD | June 2011 YTD | |
All manufacturing industries | $2.857 trillion | $2.701 trillion |
Durables goods | $1.343 trillion | $1.232 trillion |
Non-durable goods | $1.513 trillion | $1.469 trillion |
U.S. Dept. of Commerce, figures not seasonally adjusted and rounded
Year-to-date June 2012 vs. June 2011 data also shows that:
- New ordersincreased 5.2%.Value of unfilled orders increased 8%.
- Value of total inventoriesincreased 3.3% — materials and supplies increased 4.3%; work-in-process inventory increased 3.4%;
- and finished-goods inventory increased 2.2%.[4]
Is the manufacturing recovery as strong as hoped midway through 2012? Probably not. But it still looks far, far better than 2009, when value of shipments for the entire year totaled just $4.42 trillion.[5]
[1] 2011 MPI Manufacturing Study, The MPI Group. Based on current-year and next-year revenue or value of shipments (if plant is a cost center) statistics for individual U.S. plants.
[2] Full Report on Manufacturers’ Shipments, Inventories and Orders June 2012, U.S. Census Bureau, U.S. Dept. of Commerce, Aug. 2, 2012.
[3] Ibid.