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Released August 03, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Manufacturing activity in the U.S. improved marginally in July when compared with June, according to a survey by the Institute for Supply Management (ISM), amid improvement in new orders. However, the reading for employment reached its lowest level in three years, indicating slower hiring and ongoing layoffs. Still, Industrial Info is tracking more than $16 billion worth of Industrial Manufacturing Industry projects that kicked off in July.
The ISM's July Purchasing Managers Index (PMI), which tracks 18 industry sectors in the U.S., registered 46.4%--up from 46% in June--although this marks the ninth straight month of contraction. Any reading under 50% indicates contraction in the manufacturing economy.
"Demand remains weak but marginally better compared to June, production slowed due to lack of work, and suppliers continue to have capacity. There are signs of more employment reduction actions in the near term to better match production output," Timothy Fiore, chair of the ISM's Manufacturing Business Survey Committee, said.
The New Orders Index reached 47.3%, up from 45.6% in June, while the Employment Index dropped further into contraction, registering 44.4%--down from June's reading of 48.1%.
Fiore added: "Amid mixed sentiment about when significant growth will return, panelists' companies reduced production and continued to manage head counts down, to a greater extent than in previous months."
Despite the survey respondents' mixed feelings on the future growth of manufacturing activity, David Pickering, Industrial Info's vice president of research for the Industrial Manufacturing Industry, told attendees at a June webinar that he expects spending in the industry will continue to trend upward. For more information, see Industrial Info's June 29, 2023, article - IIR Webinar: Industrial Manufacturing Spending Expected to Maintain Strength.
Industrial Info is tracking more than $16 billion worth of U.S. Industrial Manufacturing Industry projects that kicked off in July, up from $9.6 billion in June, but down from nearly $24 billion in spending in July 2022.
The kickoffs were buoyed by GlobalFoundries Incorporated's (Malta, New York) $10 billion expansion of its semiconductor-manufacturing plant in Malta. The project entails adding nine buildings to the existing 950,000-square-foot plant. Last year, the U.S. Department of Defense (DoD) and GlobalFoundries entered a $117 million agreement to supply the department with semiconductors from the plant, to be used in DoD systems on land, air, sea and in space.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for the project report.
The remaining projects that kicked off in July are attributed mostly to two sectors: data centers ($2.1 billion) and automotive ($1.7 billion).
These include Microsoft Corporation's (NASDAQ:MSFT) (Redmond, Washington) $500 million second-phase expansion of its data center campus in West Des Moines, Iowa, also known as "Ginger West". General contractor Turner Construction Company (New York, New York) is expected to wrap up the project in late 2024.
Meanwhile, Google parent company Alphabet Incorporated (NASDAQ:GOOGL) (Mountain View, California) is building a $400 million grassroot data center campus in Mesa, Arizona, which is part of a three-phase, $1 billion investment to expand the company's footprint in the Southwest region. General contractor JE Dunn Construction Group (Kansas City, Missouri) is expected to wrap up the project in 2025.
Subscribers can read project reports on the Microsoft and Google projects.
In terms of automotive projects, Toyota Motor Corporation (NYSE:TM) (Toyota City, Japan) saw construction begin on the $222 million expansion of its car and truck engine plant in Huntsville, Alabama. The project entails adding a 114,000-square-foot building to the 1.3 million-square-foot facility, and a new production line to produce four-cylinder engines for both internal combustion engine (ICE) and hybrid-electric vehicles. Click here to read a detailed project report.
Subscribers to the GMI project and plant databases can click here for a look at all of the projects discussed in this article and here for the plant profiles.
Subscribers can click here for a detailed list of U.S. Industrial Manufacturing projects that kicked off in July.
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 July Purchasing Managers Index (PMI), which tracks 18 industry sectors in the U.S., registered 46.4%--up from 46% in June--although this marks the ninth straight month of contraction. Any reading under 50% indicates contraction in the manufacturing economy.
"Demand remains weak but marginally better compared to June, production slowed due to lack of work, and suppliers continue to have capacity. There are signs of more employment reduction actions in the near term to better match production output," Timothy Fiore, chair of the ISM's Manufacturing Business Survey Committee, said.
The New Orders Index reached 47.3%, up from 45.6% in June, while the Employment Index dropped further into contraction, registering 44.4%--down from June's reading of 48.1%.
Fiore added: "Amid mixed sentiment about when significant growth will return, panelists' companies reduced production and continued to manage head counts down, to a greater extent than in previous months."
Despite the survey respondents' mixed feelings on the future growth of manufacturing activity, David Pickering, Industrial Info's vice president of research for the Industrial Manufacturing Industry, told attendees at a June webinar that he expects spending in the industry will continue to trend upward. For more information, see Industrial Info's June 29, 2023, article - IIR Webinar: Industrial Manufacturing Spending Expected to Maintain Strength.
Industrial Info is tracking more than $16 billion worth of U.S. Industrial Manufacturing Industry projects that kicked off in July, up from $9.6 billion in June, but down from nearly $24 billion in spending in July 2022.
The kickoffs were buoyed by GlobalFoundries Incorporated's (Malta, New York) $10 billion expansion of its semiconductor-manufacturing plant in Malta. The project entails adding nine buildings to the existing 950,000-square-foot plant. Last year, the U.S. Department of Defense (DoD) and GlobalFoundries entered a $117 million agreement to supply the department with semiconductors from the plant, to be used in DoD systems on land, air, sea and in space.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for the project report.
The remaining projects that kicked off in July are attributed mostly to two sectors: data centers ($2.1 billion) and automotive ($1.7 billion).
These include Microsoft Corporation's (NASDAQ:MSFT) (Redmond, Washington) $500 million second-phase expansion of its data center campus in West Des Moines, Iowa, also known as "Ginger West". General contractor Turner Construction Company (New York, New York) is expected to wrap up the project in late 2024.
Meanwhile, Google parent company Alphabet Incorporated (NASDAQ:GOOGL) (Mountain View, California) is building a $400 million grassroot data center campus in Mesa, Arizona, which is part of a three-phase, $1 billion investment to expand the company's footprint in the Southwest region. General contractor JE Dunn Construction Group (Kansas City, Missouri) is expected to wrap up the project in 2025.
Subscribers can read project reports on the Microsoft and Google projects.
In terms of automotive projects, Toyota Motor Corporation (NYSE:TM) (Toyota City, Japan) saw construction begin on the $222 million expansion of its car and truck engine plant in Huntsville, Alabama. The project entails adding a 114,000-square-foot building to the 1.3 million-square-foot facility, and a new production line to produce four-cylinder engines for both internal combustion engine (ICE) and hybrid-electric vehicles. Click here to read a detailed project report.
Subscribers to the GMI project and plant databases can click here for a look at all of the projects discussed in this article and here for the plant profiles.
Subscribers can click here for a detailed list of U.S. Industrial Manufacturing projects that kicked off in July.
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).
