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Released September 05, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Manufacturing activity in the U.S. contracted in August for the fifth consecutive month, according to a survey report by the Institute for Supply Management (ISM), as demand continued to ease. Still, Industrial Info's Global Market Intelligence (GMI) shows robust project activity in the U.S. Industrial Manufacturing Industry.
The ISM's August Purchasing Manager's Index (PMI), which tracks 18 manufacturing industry sectors in the U.S., registered 47.2%; although this is an improvement from July's reading (46.8%--the lowest reading since November 2023), it still represents weakness in manufacturing activity. Any reading under 50% indicates contraction in the manufacturing economy.
June's reading was 48.6%, followed 48.7% in May, 49.2% in April and 50.3% in March; March's reading indicated the first expansion for U.S. manufacturing activity since September 2022.
In a related summary of findings, Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said, "Demand remains subdued, as companies show an unwillingness to invest in capital and inventory due to current federal monetary policy and election uncertainty. Production execution was down compared to July, putting additional pressure on profitability."
The drop in demand was reflected by the New Orders Index dipping further into contraction territory--registering 44.6% in August, down from 47.4% in July and 49.3% in June.
Meanwhile, the Production Index registered 44.8%, down from 45.9% in July. "Panelists' companies reduced production levels month over month as head-count reductions continued in August," Fiore said.
Despite any negative sentiment, Industrial Info's project data, which includes the North American Construction Starts Index, reflects positively on the U.S. Industrial Manufacturing Industry. The monthly index for July 2024, which accounts for the latest data, indicated 2,159 construction starts, with a project value of about $76 billion--up from 1,555 construction starts worth $70.4 billion in June; July 2024 saw 2,288 starts with a total investment value of $57.7 billion.
Industrial Info is tracking more than $70 billion worth of capital-spending industrial manufacturing projects in the U.S. that are scheduled to kick off from October through December, with about $30 billion of the spend attributed to data center projects.
This includes the construction of Facebook and Instagram parent Meta Platforms Incorporated's (NASDAQ:META) $840 million grassroot data center in Montgomery, Alabama, which is the first phase of a multi-building complex. The 715,000-square-foot building will be optimized to support artificial intelligence workloads. General contractor Hensel Phelps Construction Company (Greely, Colorado) expects to kick off construction in October, with the completion in late 2026. Subscribers to Industrial Info's GMI Project Database can click here to read a detailed project report.
Another data center project set to kick off in the fourth quarter and wrap up in 2026 is attributed to Amazon.com Incorporated's (NASDAQ:AMZN) (Seattle, Washington) branch for data center operations, Amazon Web Services (AWS): a Phase III data center expansion in Hermiston, Oregon. The $550 million project entails constructing a 215,000+-square-foot data center building ("PDX140") to increase cloud services in the region. Click here for the project report.
As part of its $2 billion, 1.3 million-square-foot data center complex in Avondale, Arizona, Prime Data Centers (Dallas, Texas) plans to construct the campus' first building--a two-story, 260,000-square-foot data center with 12 data halls. The $420 million project is expected to wrap up in mid-2026. Subscribers can read the project report.
In the automotive sector, Ford Motor Company (NYSE:F) (Dearborn, Michigan) plans to expand two of its engine-production plants in Ohio, with both projects expected to wrap up in mid-2025: work at the Lima Engine Plant and Brookpark Cleveland Engine Plant 1 entails installing a new assembly line plus auxiliary equipment and systems to continue making Ford's Cyclone and Duratec internal combustion engine models. The combined $190 million in project investment also supports Ford's four-and-a-half-year labor agreement with the United Auto Workers Union (UAW), ratified in late 2023. Subscribers can read more information on the projects at the Lima and Brookpark plants.
Click here for a full list of U.S. Industrial Manufacturing Industry projects set to kick off from October through December.
Click here for a look at all of the projects discussed in this article and here for the plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The ISM's August Purchasing Manager's Index (PMI), which tracks 18 manufacturing industry sectors in the U.S., registered 47.2%; although this is an improvement from July's reading (46.8%--the lowest reading since November 2023), it still represents weakness in manufacturing activity. Any reading under 50% indicates contraction in the manufacturing economy.
June's reading was 48.6%, followed 48.7% in May, 49.2% in April and 50.3% in March; March's reading indicated the first expansion for U.S. manufacturing activity since September 2022.
In a related summary of findings, Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said, "Demand remains subdued, as companies show an unwillingness to invest in capital and inventory due to current federal monetary policy and election uncertainty. Production execution was down compared to July, putting additional pressure on profitability."
The drop in demand was reflected by the New Orders Index dipping further into contraction territory--registering 44.6% in August, down from 47.4% in July and 49.3% in June.
Meanwhile, the Production Index registered 44.8%, down from 45.9% in July. "Panelists' companies reduced production levels month over month as head-count reductions continued in August," Fiore said.
Despite any negative sentiment, Industrial Info's project data, which includes the North American Construction Starts Index, reflects positively on the U.S. Industrial Manufacturing Industry. The monthly index for July 2024, which accounts for the latest data, indicated 2,159 construction starts, with a project value of about $76 billion--up from 1,555 construction starts worth $70.4 billion in June; July 2024 saw 2,288 starts with a total investment value of $57.7 billion.
Industrial Info is tracking more than $70 billion worth of capital-spending industrial manufacturing projects in the U.S. that are scheduled to kick off from October through December, with about $30 billion of the spend attributed to data center projects.
This includes the construction of Facebook and Instagram parent Meta Platforms Incorporated's (NASDAQ:META) $840 million grassroot data center in Montgomery, Alabama, which is the first phase of a multi-building complex. The 715,000-square-foot building will be optimized to support artificial intelligence workloads. General contractor Hensel Phelps Construction Company (Greely, Colorado) expects to kick off construction in October, with the completion in late 2026. Subscribers to Industrial Info's GMI Project Database can click here to read a detailed project report.
Another data center project set to kick off in the fourth quarter and wrap up in 2026 is attributed to Amazon.com Incorporated's (NASDAQ:AMZN) (Seattle, Washington) branch for data center operations, Amazon Web Services (AWS): a Phase III data center expansion in Hermiston, Oregon. The $550 million project entails constructing a 215,000+-square-foot data center building ("PDX140") to increase cloud services in the region. Click here for the project report.
As part of its $2 billion, 1.3 million-square-foot data center complex in Avondale, Arizona, Prime Data Centers (Dallas, Texas) plans to construct the campus' first building--a two-story, 260,000-square-foot data center with 12 data halls. The $420 million project is expected to wrap up in mid-2026. Subscribers can read the project report.
In the automotive sector, Ford Motor Company (NYSE:F) (Dearborn, Michigan) plans to expand two of its engine-production plants in Ohio, with both projects expected to wrap up in mid-2025: work at the Lima Engine Plant and Brookpark Cleveland Engine Plant 1 entails installing a new assembly line plus auxiliary equipment and systems to continue making Ford's Cyclone and Duratec internal combustion engine models. The combined $190 million in project investment also supports Ford's four-and-a-half-year labor agreement with the United Auto Workers Union (UAW), ratified in late 2023. Subscribers can read more information on the projects at the Lima and Brookpark plants.
Click here for a full list of U.S. Industrial Manufacturing Industry projects set to kick off from October through December.
Click here for a look at all of the projects discussed in this article and here for the plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
