ISM Spring Forecast: Economic Growth to Continue in 2018 - Modern Distribution Management

ISM Spring Forecast: Economic Growth to Continue in 2018

Business conditions remain strong; hiring and materials price increases remain challenges.

Economic growth will continue throughout 2018, according to the Spring 2018 Semiannual Economic Forecast from the Institute for Supply Management. Purchasing and supply executives responding to the ISM survey said conditions will remain positive in both the manufacturing and non-manufacturing sectors.

Manufacturing industry professionals said they expect an average 6.6 percent revenue increase this year compared to 2017, 1.5 percentage points above the group’s December forecast and 2.5 percentage points above the actual revenue growth reported in 2017. Respondents said they expect to operate at 85.8 percent capacity this year, with an expected capital expenditure increase of 10 percent, a 5 percent increase in raw materials prices, and a 1.8 percent increase in employment compared to last year.

Raw materials price increases and trouble finding qualified workers remain key challenges, according to Timothy R. Fiore, chairman of the ISM Manufacturing Business Survey committee, who released the report May 7. Respondents were asked additional questions about the labor issue, revealing the following insights:

  • 77.9 percent said they have had difficulty hiring workers to fill open positions in the last six months;

  • 53.3 percent said they have raised wages to recruit new hires in the past six months;

  • 47.9 percent said they have offered additional training for new hires in the last six months.

Respondents were also asked about the implications of tariffs to their business, with most saying they will affect both product pricing and supply chain operations. Nearly 74 percent said they believe tariffs will raise the price of their products to customers, and nearly 56 percent said they will cause delays and disruptions to their supply chains.

 

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!