December 7, 2012 [past updates]
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Biweekly Notes |
Apple to join companies bringing some manufacturing jobs back to US
Apple plans to join a small but growing number of companies that are bringing some manufacturing jobs back to the United States, drawn by the growing economic and political advantages of producing in their home market. On Thursday, Apple’s chief executive, Timothy D. Cook, who built its efficient Asian manufacturing network, said the company would invest $100 million in producing some of its Mac computers in the United States, beyond the assembly work it already does in the United States. Some analysts are hopeful that the move by a big, innovative company like Apple could inspire a broader renaissance in American manufacturing, but a number of experts remain skeptical. Over the last few years, companies across various industries, including electronics, automotive and medical devices, have announced that they are “reshoring” jobs after decades of shipping them abroad. American manufacturing has been growing in the last two years, but the sector still has two million fewer jobs than it had when the recession began in December 2007. In October, Lenovo, the computer giant based in China, said it would begin making its Think-branded computers, including notebooks, desktops and some tablets, at a facility in Whitsett, N.C. The move will create 115 manufacturing jobs at the plant, the company said.
(The New York Times|December 6, 2012)
[Read More]
U.S. Manufacturing Shrinks More Than Expected
The U.S. manufacturing sector fell back into contraction last month and employment weakened sharply, according to data released Monday by the Institute for Supply Management. The ISM's manufacturing purchasing managers' index unexpectedly fell to 49.5 in November from 51.7 in October. A reading above 50 indicates expanding activity. Economists surveyed by Dow Jones Newswires had expected the November PMI to fall but only to 51.0. Comments from the panel "indicate that the second half of the year continues to show a slowdown in demand; respondents also express concern over how and when the fiscal cliff issue will be resolved," the report said. The last PMI returns to the contractionary numbers seen over the summer. The report conflicts with another national factory index. Earlier Monday, data provider Markit said its own U.S. factory index hit a six-month high in November.
(The Wall Street Journal | December 3, 2012)
[Read More]
U.S. Manufacturing Key Facts
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Manufacturing Wage Rates UPDATED
- In November 2012, average hourly earnings in manufacturing were $19.20 (preliminary), up 0.16 percent from previous month, and up 1.16 percent from November 2011’s $18.98.
(BLS/DOL Employment data from “The Employment Situation, USDL 12-2366,” released December 7, 2012; next release is January 4, 2012)
http://www.bls.gov/news.release/pdf/empsit.pdf
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Manufacturing Wage Rates (Quarterly, Yearly) UPDATED
- In the third-quarter of 2012, hourly compensation from previous quarter, annual rate (revised) was up (+2.4 percent) in total manufacturing, up (+2.0 percent) in durable manufacturing and up (+3.3 percent) in nondurable manufacturing.
- In the third-quarter of 2012, hourly compensation of all manufacturing workers increased (+2.9 percent), compared to a (+2.7 percent) increase during the third-quarter of 2011. Real hourly compensation in the total manufacturing sector increased (+1.1 percent) in the third-quarter of 2012, compared to (-1.0 percent) decrease in the third-quarter of 2011.
(BLS/DOL Productivity data from “Productivity and Costs, Third Quarter 2012,” USDL 12-2364, released December 5, 2012; next release is February 7, 2013)
http://www.bls.gov/news.release/pdf/prod2.pdf
(BEA/DOC GDP data from “Gross Domestic Product, BEA 12-53,” released November 29, 2012; next release is December 20, 2012)
http://www.bea.gov/newsreleases/national/gdp/2012/pdf/gdp2q12_3rd.pdf
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Manufacturing Employment UPDATED
- • In November 2012, manufacturing employment went down, with a decrease of 7,000 jobs.
- • In November, durable goods manufacturing gained 11,000 jobs with increases in transportation equipment (+8,500), fabricated metal products (+4,500), wood products (+3,300), electrical equipment and appliances (+1,300), and nonmetallic mineral products (+1,200). However, job loss occurred in computer and electronic products (-3,700), primary metals (-1,700), miscellaneous manufacturing (-1,300), machinery (-500), and furniture and related products (-300).
- • In November, nondurable goods manufacturing lost 18,000 jobs with decreases in food manufacturing (-12,300), chemicals (-9,100), paper and paper products (-1,400), textile product mills (-200), and apparel (-200). However, job gain occurred in plastics and rubber products (+1,600), beverages and tobacco products (+1,200), petroleum and coal products (+900), printing and related support activities (+600), textile mills (+500), and leather and allied products (+100).
- The manufacturing employment of 12.0 million workers represents 8.9 percent of total non-farm employment.
(BLS/DOL Employment data from “The Employment Situation, USDL 12-2366,” released December 7, 2012; next release is January 4, 2012) http://www.bls.gov/news.release/pdf/empsit.pdf
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- In October 2012, manufacturing production was down (-0.9 percent) from previous month and was up (+1.6 percent) above its year-earlier level.
- In October 2012, production of durable goods was down (-0.6 percent) from the previous month. The durable industries that registered decreases in output included machinery (-1.9 percent), electrical equip., appliances, and components (-1.4 percent), fabricated metal products (-0.7 percent), furniture and related products (-0.6 percent), miscellaneous manufactured product (-0.4 percent), nonmetallic mineral products (-0.4 percent), computer and electronic products (-0.3 percent), primary metals (-0.2 percent), aerospace and miscellaneous transportation equipment (-0.1 percent), and motor vehicles and parts (-0.1 percent). The durable industry that registered increase in output was wood products (+0.1 percent).
- In October 2012, production of nondurable goods was down (-1.0 percent) from the previous month. The nondurable industries that registered decreases in output included apparel and leather (-2.1 percent), food, beverage and tobacco products (-1.8 percent), printing and support (-1.5 percent), paper (-1.2 percent), petroleum and coal products (-0.9 percent), textile and product mills (-0.5 percent), and chemicals (-0.3 percent). The durable industry that registered increase in output was plastics and rubber products (+0.2 percent).
- In October 2012, production of other manufacturing goods (non-NAICS) was down (-3.4 percent).
(Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released November 16, 2012; next release is December 14, 2012)
http://www.federalreserve.gov/releases/g17/Current/g17.pdf
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Manufacturing Capacity Utilization
- In October 2012, manufacturing industries (NAICS based) operated at 76.6 percent of capacity, down (-0.7 points) from previous month, and down (-2.1 percentage points) below their 1972-2011 average of 78.7 percent.
- In October 2012, durable manufacturing, capacity utilization operated at 75.8 percent capacity, down (-0.6 percentage points) from the previous month. Decreased capacity utilization was registered in machinery (-1.8 points), electrical equip., appliances, and components (-1.2 points), fabricated metal products (-0.7 points), miscellaneous (-0.7 points), computer and electronic products (-0.5 points), motor vehicles and parts (-0.4 points), furniture and related products (-0.3 points), aerospace and miscellaneous transportation equipment (-0.2 points), and primary metals (-0.1 points). Increased capacity utilization was registered in wood products (+0.1 points). There was no change of capacity utilization in nonmetallic mineral products.
- In October 2012, non-durable manufacturing, capacity utilization operated 77.5 percent capacity, down (-0.8 points) from the previous month. Decreased capacity utilization was registered in food, beverage, and tobacco products (-1.6 points), apparel and leather (-1.3 points), printing and support (-1.0 points), paper (-0.8 points), petroleum and coal products (-0.4 points), chemicals (-0.4 points), and textile and product mills (-0.2 points). There was no change of capacity utilization in plastics and rubber products.
- The index for other manufacturing industries (non-NAICS) was down (-1.9 points).
(Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released November 16, 2012; next release is December 14, 2012)
http://www.federalreserve.gov/releases/g17/Current/g17.pdf
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Manufacturing Productivity UPDATED
- Manufacturing sector productivity (preliminary) was down (-0.7 percent) in the third-quarter of 2012, as output decreased (-0.7 percent) while hours remained the same. Productivity was down (-1.6 percent) in the durable goods industries and up (+0.2 percent) in the nondurable goods industries. Unit labor costs in manufacturing increased (+3.2 percent) in the third-quarter of 2012, and increased (+1.5 percent) over the last four quarters.
- In durable goods industries, productivity was down (-1.6 percent) from previous quarter, as output decreased (-1.9 percent), while hours worked decreased (-0.3 percent).
- In nondurable goods industries, productivity was up (+0.2 percent) from previous quarter, as output increased (+0.7 percent), and hours worked increased (+0.4 percent).
(BLS/DOL Productivity data from “Productivity and Costs, Third Quarter 2012,” USDL 12-2364, released December 5, 2012; next release is February 7, 2013)
http://www.bls.gov/news.release/pdf/prod2.pdf
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- Manufactured goods exports in September 2012 were (-0.50 percent) lower than the previous month. Imports were (-4.26 percent) lower.
- Year-to-date September 2012, U.S. manufactured goods exports accounted for 87.4 percent of all U.S. exports of goods, compared with 86.1 percent a year ago.
- The year-to-date September 2012 trade deficit in manufactured goods of $339.1 billion was $10.2 billion more when compared with $329.0 billion a year ago.
(USA Trade Online, U.S. Census Bureau, released November 8, 2012; Next release is December 11, 2012)
http://www.usatradeonline.gov/
Manufactured Goods Shipments UPDATED
- Shipments of manufactured durable goods in October, down two of the last three months, decreased $0.8 billion or 0.4 percent to $222.7 billion, revised from the previously published 0.6 percent decrease. This followed a 0.5 percent September increase.
- In October, shipments of durable goods increased in wood products (+2.7 percent), nonmetallic mineral products (+0.8 percent), machinery (+0.6 percent), electrical equipment, appliances, and components (+0.4 percent), furniture and related products (+0.1 percent), and fabricated metal products (+0.1 percent). However, shipments decreased in miscellaneous durable goods (-1.6 percent), primary metals (-1.2 percent), transportation equipment (-1.0 percent), and computers and electronic products (-0.4 percent).
(Census Bureau/DOC data from “Report on Manufacturers’ Shipments, Inventories and Orders (M3-2(12)-10, CB12-227),” December 5, 2012; next release is January 4, 2013)
http://www.census.gov/manufacturing/m3/
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- In October 2012, the Producer Price Index (PPI) for finished goods, except foods and energy, decreased by -0.2 compared to previous month.
- The index for finished energy goods was down (-0.5 percent) from previous month.
- A seasonally adjusted increase in price from September to October was registered in no. 2 diesel fuel (+2.2 percent), residential electric power (+1.6 percent), and residential gas (+0.2 percent). A decrease in price was registered in home heating oil and distillates (-3.3 percent), gasoline (-2.2 percent), and liquefied petroleum gas (-0.3 percent).
(BLS/DOL data from “Producer Price Indexes, USDL 12-2258,” released November 14, 2012; next release is December 13, 2012)
http://www.bls.gov/news.release/pdf/ppi.pdf
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Institute for Supply Management's (ISM) Index UPDATED
- Manufacturing contracted in November as the PMI™ registered 49.5 percent, a decrease of 2.2 percentage points when compared to October's reading of 51.7 percent. This is the fourth month in the last six months that the PMI™ has contracted, and the index is at its lowest level since July 2009 when the PMI™ registered 49.2 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
- Manufacturing expanded in October as the PMI™ registered 51.7 percent, an increase of 0.2 percentage point when compared to September's reading of 51.5 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
- The percentage-point changes in the components of the PMI in November were Inventories, decrease (-5.0 points) to 45.0; New Orders decrease (-3.9 points) to 50.3; Employment, decrease (-3.7 points) to 48.4; Production, increase (+1.3 points) to 53.7; and Supplier Deliveries, increase (+0.7 points) to 50.3.
U.S. Industries Reporting Growth in November 2012
- Petroleum & Coal Products
- Paper Products; Furniture & Related Products
- Electrical Equipment, Appliances & Components
- Food, Beverage & Tobacco Products
- Computer & Electronic Products
(Institute for Supply Management, data released December 3, 2012; next release is January 2, 2012)
http://www.ism.ws/ISMReport/MfgROB.cfm?navItemNumber=12942
Prepared by
Director of Office of Trade Industry Information
Manufacturing and Services
International Trade Administration
U.S. Department of Commerce
(202) 482-4691