ISM: 0.2% U.S. Manufacturing Capex Growth Expected in 2017

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Purchasing and supply management executives in the U.S. expect capital expenditures within the manufacturing sector to increase 0.2% in 2017, compared with the 7.3% increase reported for 2016 over 2015, according to a newly-released survey by the Institute for Supply Management (ISM) (Tempe, Arizona).

Industrial Info is tracking 565 active Industrial Manufacturing projects with a combined value of $75.7 billion in the U.S. that are expected to kick off construction in 2017. This includes 137 transportation systems projects valued at $54.1 billion, 66 automotive projects valued at $9.4 billion and 86 distribution and warehousing projects valued at $5.1 billion.

The ISM said 38% of the survey's manufacturing industry respondents who predict increased capital expenditures in 2017 indicate an average increase of 21.5%, while the 21% who said their capital spending would drop predict an average decrease of 37.7%. Also, 41% said they expect to spend the same in 2017 as in 2016. The 12 industries predicting increases in capital expenditures for 2017 include: Textile Mills; Furniture & Related Products; Wood Products; Plastics & Rubber Products; Machinery; Printing & Related Support Activities; Paper Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Nonmetallic Mineral Products; and Food, Beverage & Tobacco Products.

Purchasing and supply managers reported 2016 capital expenditures increased 7.3% on average when compared with 2015 levels. "The actual expenditures for 2016 were well above survey respondents' previous expectations, as they predicted an increase of 1% for 2016 in April 2016," ISM said in a press release.

Overall expectations by manufacturing purchasing and supply managers are positive for 2017, according to the ISM, as 67% of the survey respondents expect revenues to be greater than 2017 than in 2016. A 4.6% net increase in overall revenues is expected for 2017, compared with a 0.9% increase reported for 2016 over 2015 revenues.

Bradley Holcomb, chair of the ISM Manufacturing Business Survey Committee, said, "Manufacturing purchasing and supply executives expect to see growth in 2017. They are optimistic about their overall business prospects for the first half of 2017, and are slightly more optimistic about the second half of 2017."

The latest quarterly membership survey by The National Association of Manufacturers (NAM) indicates more than 34% of the respondents anticipate capital spending to increase over the next year, down just two percentage points from the previous survey. For more information, see September 16, 2016, article - Survey: U.S. Manufacturers' Capital Spending Outlook Stabilizes.

For related information, see November 18, 2016, article, - Concerns about Trump Administration Drive Uncertainty in U.S. Auto Industry, and November 16, 2016, article - U.S. Fabricated Metal Products Sector Shines.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.