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Released November 06, 2023 | sugar land
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. manufacturing activity contracted sharply in October after showing improvement in September and August, according to a survey report by the Institute for Supply Management (ISM), as demand took a hit. Still, Industrial Info's Global Market Intelligence (GMI) Project Database shows project activity in the Industrial Manufacturing Industry remains robust.
The ISM's October Purchasing Managers Index (PMI), which tracks 18 industry sectors in the U.S., registered 46.7%--down from 49% in September and 47.6% in August. September's reading was the strongest since November 2022.
October marks the 12th consecutive month of contraction. Any reading under 50% indicates contraction in the manufacturing economy.
"Demand eased," Timothy Fiore, chair of the ISM's Manufacturing Business Survey Committee, said. The New Orders Index (45.5%) contracted at a faster rate, Fiore noted, dropping from 49.2% recorded in September, and the Employment Index registered 46.8%, down from 51.2% in September.
The Backlog of Orders Index declined slightly while remaining in "strong contraction territory," Fiore added.
But although Fiore noted demand weakened, he also said "production execution is stable compared to September as panelists' companies continue to manage outputs, material inputs and--more aggressively--labor costs. Suppliers continue to have capacity."
Despite any negative sentiment, Industrial Info is tracking about $20 billion worth of Industrial Manufacturing projects that are set to kick off by the end of the year. Subscribers to Industrial Info's GMI Industrial Manufacturing Project Database can click here for a full list.
The automotive sector leads the project spending, with about $7.6 billion worth of projects, followed by data centers ($4.1 billion) and heavy manufacturing ($3.8 billion).
Among the projects is the $300 million Phase I construction of American Battery Factory's (Tucson, Arizona) lithium-iron phosphate (LFP) battery plant in Tucson. The project, which is the first of four phases totaling $1.2 billion, is expected to wrap up by 2025 and involves constructing multiple buildings totaling about 400,000 square feet with an initial annual production capacity of 3 gigawatt-hours. Subscribers can read the detailed project report.
Meanwhile, Meta Platforms Incorporated's (NASDAQ:META) (Menlo Park, California) $250 million Phase III expansion of its data center in Eagle Mountain, Utah is expected to kick off in December. The project entails constructing a 1 million-square-foot data center building to expand services for clients, including WhatsApp and Instagram. M.A. Mortenson Company (Minneapolis, Minnesota) will manage the construction of the project, which is expected to wrap up late next year. Click here to read the detailed project report.
Diesel and alternative fuel engines and generator manufacturer Cummins Incorporated (Columbus, Indiana) plans to begin a $150 million upgrade project at its combustion engine manufacturing plant in Columbus, which entails upgrading production equipment and supporting systems to produce fuel-agnostic engine platforms that would run on low-carbon fuels.
In April, President Joe Biden visited the company's power generator and products plant in Fridley, Minnesota, as part of his administration's Investing in America tour highlighting efforts to help build a clean energy economy, rebuilding infrastructure and promoting domestic manufacturing. Coinciding with the visit, Cummins announced $1 billion in investment across its footprint in Indiana, North Carolina and New York, citing support from the Bipartisan Infrastructure Law and Inflation Reduction Act, to "support the industry's first fuel agnostic engine platforms that will run on low carbon fuels, including natural gas, diesel and eventually hydrogen, helping decarbonize the nation's truck fleets today."
Cummins is at work on the related $452 million upgrade project at its Jamestown Engine Plant in Lakewood, New York. Subscribers to the GMI Project and Plant databases can read detailed information on the Indiana and New York projects, both of which are expected to wrap up in 2024, and click here for a profile on the power generators plant in Minnesota.
Subscribers to the GMI project and plant databases can click here for a look at all of the project reports 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 October Purchasing Managers Index (PMI), which tracks 18 industry sectors in the U.S., registered 46.7%--down from 49% in September and 47.6% in August. September's reading was the strongest since November 2022.
October marks the 12th consecutive month of contraction. Any reading under 50% indicates contraction in the manufacturing economy.
"Demand eased," Timothy Fiore, chair of the ISM's Manufacturing Business Survey Committee, said. The New Orders Index (45.5%) contracted at a faster rate, Fiore noted, dropping from 49.2% recorded in September, and the Employment Index registered 46.8%, down from 51.2% in September.
The Backlog of Orders Index declined slightly while remaining in "strong contraction territory," Fiore added.
But although Fiore noted demand weakened, he also said "production execution is stable compared to September as panelists' companies continue to manage outputs, material inputs and--more aggressively--labor costs. Suppliers continue to have capacity."
Despite any negative sentiment, Industrial Info is tracking about $20 billion worth of Industrial Manufacturing projects that are set to kick off by the end of the year. Subscribers to Industrial Info's GMI Industrial Manufacturing Project Database can click here for a full list.
The automotive sector leads the project spending, with about $7.6 billion worth of projects, followed by data centers ($4.1 billion) and heavy manufacturing ($3.8 billion).
Among the projects is the $300 million Phase I construction of American Battery Factory's (Tucson, Arizona) lithium-iron phosphate (LFP) battery plant in Tucson. The project, which is the first of four phases totaling $1.2 billion, is expected to wrap up by 2025 and involves constructing multiple buildings totaling about 400,000 square feet with an initial annual production capacity of 3 gigawatt-hours. Subscribers can read the detailed project report.
Meanwhile, Meta Platforms Incorporated's (NASDAQ:META) (Menlo Park, California) $250 million Phase III expansion of its data center in Eagle Mountain, Utah is expected to kick off in December. The project entails constructing a 1 million-square-foot data center building to expand services for clients, including WhatsApp and Instagram. M.A. Mortenson Company (Minneapolis, Minnesota) will manage the construction of the project, which is expected to wrap up late next year. Click here to read the detailed project report.
Diesel and alternative fuel engines and generator manufacturer Cummins Incorporated (Columbus, Indiana) plans to begin a $150 million upgrade project at its combustion engine manufacturing plant in Columbus, which entails upgrading production equipment and supporting systems to produce fuel-agnostic engine platforms that would run on low-carbon fuels.
In April, President Joe Biden visited the company's power generator and products plant in Fridley, Minnesota, as part of his administration's Investing in America tour highlighting efforts to help build a clean energy economy, rebuilding infrastructure and promoting domestic manufacturing. Coinciding with the visit, Cummins announced $1 billion in investment across its footprint in Indiana, North Carolina and New York, citing support from the Bipartisan Infrastructure Law and Inflation Reduction Act, to "support the industry's first fuel agnostic engine platforms that will run on low carbon fuels, including natural gas, diesel and eventually hydrogen, helping decarbonize the nation's truck fleets today."
Cummins is at work on the related $452 million upgrade project at its Jamestown Engine Plant in Lakewood, New York. Subscribers to the GMI Project and Plant databases can read detailed information on the Indiana and New York projects, both of which are expected to wrap up in 2024, and click here for a profile on the power generators plant in Minnesota.
Subscribers to the GMI project and plant databases can click here for a look at all of the project reports 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).
