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Released August 07, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Economic activity for U.S. manufacturing continues to trend downward, according to a survey report by the Institute for Supply Management (ISM), amid a decline in new orders and production. The ISM's July Purchasing Manager's Index (PMI), which tracks 18 manufacturing industry sectors in the U.S., reached its lowest level in eight months. Still, Industrial Info's Global Market Intelligence (GMI) Project Database shows project activity in the U.S. Industrial Manufacturing Industry is on an upward trajectory.
The ISM's latest PMI registered 46.8%, marking the lowest reading since 46.7% in November 2023. July's index is down from 48.6% in June, 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. Any reading under 50% indicates contraction in the manufacturing economy.
In a related summary of findings, Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said, "Demand remains elusive as companies demonstrate an unwillingness to invest due to current monetary policy and other conditions. Production execution was down compared to June, likely adding to revenue declines, putting additional pressure on profitability."
The drop in demand was reflected by the New Orders Index dipping further into contraction territory--registering 47.4% in July--down from 49.3% in June. "Panelists' comments noted a continued level of uncertainty and concern about a lack of new order activity, with confidence in the future economic environment reaching its lowest level since the coronavirus pandemic recovery," Fiore said.
Meanwhile, the Production Index registered 45.9%, down from 48.5% in June. "Panelists' companies significantly reduced output levels compared to June. New order rates remain weak, and backlog levels continue to decline. Companies continue to avoid investing in inventory due to the current economic uncertainty."
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 June 2024, which accounts for the latest data, indicated 1,555 construction starts, with a project value of $70.4 billion--up from 1,447 starts worth $66.3 billion in May; June 2023 saw 1,588 starts with a total investment value of about $49 billion.
With a total investment value of more than $300 billion, Industrial Manufacturing Industry projects under construction in the U.S. include activity in the semiconductor, automotive, data center and heavy-manufacturing sectors, among others.
Industrial Info is tracking the first two phases of Texas Instruments Incorporated's (NASDAQ:TXN) (Dallas, Texas) semiconductor plant in Sherman, Texas, about 60 miles north of Dallas. With a combined investment value of $13.5 billion, the two projects will provide roughly 2 million square feet of space to manufacture 300-millimeter wafers for automobiles and other electronic applications. Subscribers to the GMI Industrial Manufacturing Project Database can read detailed project reports on Phase I and Phase II, both of which are expected to wrap up in the summer of 2025. Two subsequent phases could stretch the work into 2028 before completion of the project.
Industrial Info also is tracking projects aimed at manufacturing the machinery needed to produce semiconductors, including ASML's (Veldhoven, Netherlands) (NYSE:MUFG) $250 expansion of its semiconductor-machinery manufacturing plant in Wilton, Connecticut, to increase production capacity. Construction is expected to wrap up around the end of the year. Click here to read the project report.
In terms of automotive projects, Honda Motor Company Limited (NYSE:HMC) (Tokyo, Japan) is performing $250 million retooling/upgrade projects at two of its plants in Ohio, aimed at boosting EV production: its 2.6-million-square-foot engine-manufacturing plant in Anna and 2.1 million-square-foot automotive assembly plant in East Liberty. Subscribers can read more information on the Anna and East Liberty projects, both of which are expected to be completed by the end of 2025.
The Anna plant expansion will allow the automaker to assemble battery modules that will support EV assembly at East Liberty.
Meanwhile, Facebook and Instagram parent Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) is building a data center in Temple, Texas, and the first two phases of the project are underway. The first phase includes a 900,000-square-foot complex with 700,000 square feet for data halls, with completion expected in 2025.
Construction on the second phase began in December 2023, with completion planned for 2026. Subsequent phases could stretch the work into 2030 before final completion of the project. Subscribers can read more information on the grassroot and Phase II projects.
A June outlook survey from the National Association of Manufacturers (NAM) shows U.S. manufacturers expect ongoing capital spending in the next 12 months, but the respondents said tax increases set to go into effect next year could limit investment. For more information, see June 28, 2024, article - U.S. Manufacturers Maintain Capital-Spending Expectations, but Implore Congress to Avoid Tax Increases.
Click here for a full list of Industrial Manufacturing Industry projects under construction in the U.S.
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 latest PMI registered 46.8%, marking the lowest reading since 46.7% in November 2023. July's index is down from 48.6% in June, 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. Any reading under 50% indicates contraction in the manufacturing economy.
In a related summary of findings, Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said, "Demand remains elusive as companies demonstrate an unwillingness to invest due to current monetary policy and other conditions. Production execution was down compared to June, likely adding to revenue declines, putting additional pressure on profitability."
The drop in demand was reflected by the New Orders Index dipping further into contraction territory--registering 47.4% in July--down from 49.3% in June. "Panelists' comments noted a continued level of uncertainty and concern about a lack of new order activity, with confidence in the future economic environment reaching its lowest level since the coronavirus pandemic recovery," Fiore said.
Meanwhile, the Production Index registered 45.9%, down from 48.5% in June. "Panelists' companies significantly reduced output levels compared to June. New order rates remain weak, and backlog levels continue to decline. Companies continue to avoid investing in inventory due to the current economic uncertainty."
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 June 2024, which accounts for the latest data, indicated 1,555 construction starts, with a project value of $70.4 billion--up from 1,447 starts worth $66.3 billion in May; June 2023 saw 1,588 starts with a total investment value of about $49 billion.
With a total investment value of more than $300 billion, Industrial Manufacturing Industry projects under construction in the U.S. include activity in the semiconductor, automotive, data center and heavy-manufacturing sectors, among others.
Industrial Info is tracking the first two phases of Texas Instruments Incorporated's (NASDAQ:TXN) (Dallas, Texas) semiconductor plant in Sherman, Texas, about 60 miles north of Dallas. With a combined investment value of $13.5 billion, the two projects will provide roughly 2 million square feet of space to manufacture 300-millimeter wafers for automobiles and other electronic applications. Subscribers to the GMI Industrial Manufacturing Project Database can read detailed project reports on Phase I and Phase II, both of which are expected to wrap up in the summer of 2025. Two subsequent phases could stretch the work into 2028 before completion of the project.
Industrial Info also is tracking projects aimed at manufacturing the machinery needed to produce semiconductors, including ASML's (Veldhoven, Netherlands) (NYSE:MUFG) $250 expansion of its semiconductor-machinery manufacturing plant in Wilton, Connecticut, to increase production capacity. Construction is expected to wrap up around the end of the year. Click here to read the project report.
In terms of automotive projects, Honda Motor Company Limited (NYSE:HMC) (Tokyo, Japan) is performing $250 million retooling/upgrade projects at two of its plants in Ohio, aimed at boosting EV production: its 2.6-million-square-foot engine-manufacturing plant in Anna and 2.1 million-square-foot automotive assembly plant in East Liberty. Subscribers can read more information on the Anna and East Liberty projects, both of which are expected to be completed by the end of 2025.
The Anna plant expansion will allow the automaker to assemble battery modules that will support EV assembly at East Liberty.
Meanwhile, Facebook and Instagram parent Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) is building a data center in Temple, Texas, and the first two phases of the project are underway. The first phase includes a 900,000-square-foot complex with 700,000 square feet for data halls, with completion expected in 2025.
Construction on the second phase began in December 2023, with completion planned for 2026. Subsequent phases could stretch the work into 2030 before final completion of the project. Subscribers can read more information on the grassroot and Phase II projects.
A June outlook survey from the National Association of Manufacturers (NAM) shows U.S. manufacturers expect ongoing capital spending in the next 12 months, but the respondents said tax increases set to go into effect next year could limit investment. For more information, see June 28, 2024, article - U.S. Manufacturers Maintain Capital-Spending Expectations, but Implore Congress to Avoid Tax Increases.
Click here for a full list of Industrial Manufacturing Industry projects under construction in the U.S.
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).
