Proof of Purchase

Manufacturing index hits lowest point in ten years, new orders contracted for first time since 2009

The U.S. Manufacturing Purchasing Managers’ Index fell by more than two-points to 50.5 in May, the lowest level since Sept. 2009, according to IHS Markit. New orders contracted for the first time since August 2009. The overall index has fallen by almost six points over the last year.

This news comes as a blow to a number of investors and companies in the sector; as it not only runs counter to separate, encouraging figures denoting manufacturing job growth over the last few years, but also strikes a chord with political contradictions.

Not all bad, though: While the IHS figures are staggering, there are certain sectors still producing growth in the world of manufacturing. For example, global spending on IIoT Platforms for manufacturing is predicted to grow from $1.67B in 2018 to $12.44B in 2024, attaining a 40% compound annual growth rate (CAGR) in seven years, according to Forbes. Also, in the promising world of additive manufacturing (which incorporates 3D printing technologies), a recent investment was made on the ground to indicate growth in the U.S. Oerlikon, the Swiss global provider of surface solutions, equipment, advanced materials, and materials processing, inaugurated its $55 million Innovation Hub & Advanced Component Production facility in Huntersville, N.C., May 29 as part of its ongoing U.S. growth strategy. The facility will serve as a cornerstone of Oerlikon’s additive manufacturing business in the United States, emphasizing work in research and development. The 125,000-sq.-ft. facility currently employs about 60 people and is fully functional.

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