Columbia Sportswear Company Announces New Management Appointments Within Finance, Legal And Manufacturing

PORTLAND, Ore. — December 4, 2017 — Columbia Sportswear Co. today announced the following management appointments.

Melissa Dugan, an industry veteran with 27 years of experience, has been appointed vice president, chief accounting officer, reporting to Jim Swanson, senior vice president, CFO.

“We are delighted to announce the addition of a proven industry leader with Melissa assuming the role as our Chief Accounting Officer,” Swanson said. “Melissa joins our worldwide finance team bringing tremendous experience, including several years in senior level accounting leadership positions at Nike Inc., as well as prior experience working overseas as an accountant for Pricewaterhouse Coopers LLP.”

Additionally, Jennifer Warner has joined Columbia Sportswear Co. as vice president of Legal, reporting to Peter Bragdon, executive vice president, chief administrative officer and general counsel.

“We are excited to have Jennifer join Columbia as a leader in our Legal Department,” Bragdon said. “Jennifer brings a wealth of public company and legal operations experience, including work as Global Chief Compliance Officer and General Counsel for the Americas at XPO Logistics Inc., a Fortune 200 supply chain and logistics company.” Warner previously worked as Associate Counsel for Northwest Natural Gas Company and as an attorney for Stoel Rives LLP. Most recently, she was vice president of Compliance and chief development officer for the Ashe Legal Group and AsheWorks Inc.

As an internal appointment, David Soriano, who has served as the company’s general manager of Asia Footwear in Zhuhai, China since early 2016, has assumed the role of vice president of Footwear Manufacturing, reporting to Tom Cusick, executive vice president and COO.

“As a 21-year veteran of the footwear industry, David brings a significant amount of leadership experience in footwear manufacturing operations,” Cusick said. “To assume his new role, David has relocated to our Portland, Oregon, headquarters to lead our Global Footwear Manufacturing team and maintain strong partnerships with both the Columbia and SOREL brand functional teams.” Prior to joining Columbia Sportswear Company, David held management roles overseeing footwear manufacturing operations in Asia for Puma, LaCrosse Footwear Inc. and Nike.

Posted December 4, 2017

Source: Columbia Sportswear

Brooks Running Brings Innovation To Runners By Unveiling The Most Personalized Running Footwear

SEATTLE — November 29, 2017 — Brooks Running Co. announced it is partnering with HP Inc. and Superfeet to deliver the most personalized running footwear. Leveraging FitStation powered by HP and Brooks Run Signature, Brooks will introduce the first performance running shoe created based on an individual’s unique biomechanics which will be available via special order through select retail partners beginning June 2018.

With a singular focus on running, Brooks has a deep understanding of runners’ unique biomechanics and is committed to providing personalized experiences that enhance the run for every individual. Based on years of research, the company developed its Run Signature philosophy rooted in the belief that the best way to enhance comfort and improve performance is not to fix a runner’s “flaws” but to instead create running footwear that works with the runner’s natural motion path of his or her body. Through its partnership with HP and Superfeet, Brooks takes Run Signature to the next level and delivers the most personalized running footwear.

“Brooks is committed to providing the fit, feel and ride each runner wants,” said Brooks CEO Jim Weber. “The ability to give an individual a personalized shoe based on his or her unique biomechanics is a game changer. It is a compelling offering for the runner who is interested in tip-of-the-spear technology and a totally tuned experience. As part of our focus on reinventing performance running, we will continue to push the envelope to bring runners innovations that help them uniquely tailor their run.”

FitStation powered by HP is pioneering hardware and software that combines 3-D foot scanning with dynamic gait analysis and foot pressure measurements. Fully aligned with principles from Brooks Run Signature, FitStation offers customers in-depth analysis including key motion zones to identify the unique motion path of the runner’s body and information about the desired running experience. FitStation creates a one-of-a-kind holistic digital profile of an individual that combines personalized fit, biomechanics and experience.

“FitStation by HP is changing what personalization means — from the in-store experience to the final product. In collaboration with Brooks and Superfeet, we are delivering truly made-to-measure footwear with a lot size of one,” said Ed Ponomarev, general manager of FitStation and business development HP Inc. “Digitalization of biometric data opens an opportunity to ultimate individualization with the speed and cost efficiency of mass production. HP brings deep experience in computing, scanning and technology integration at scale to deliver a revolutionary digital manufacturing platform, creating individualized products that are available to anyone — from casual runners to elite athletes.”

The FitStation analysis translates into specific requirements for each shoe, and is then produced by Superfeet on a state-of-the-art DESMA polyurethane injection-molding machine. The system uses the 3-D foot scans to determine the proper lasts which the shoes are built around, ensuring each shoe is tailored to the specific shape of the runner’s foot. Then, using a combination of variable PU injection with direct attach capabilities, the foot pressure measurements, movement analysis of the runner’s joints, and their personal experience preferences are combined to create personalized midsole requirements with multiple tuned zones — all ensuring the runner stays in their preferred motion path and receives the running experience they desire. All personalized footwear will be manufactured in the U.S. at Superfeet’s world headquarters in Ferndale, Wash.

“Having the leader in running footwear leverage FitStation and our U.S. manufacturing facilities to create the most individualized running shoe on the market is momentous,” said John Rauvola, president and CEO, Superfeet. “Not only will it change what people expect from their running experience, it is also an important step in making a positive difference in people’s lives by delivering the best underfoot support possible. This is the beginning of the individualized fit revolution.”

Brooks will demonstrate the industry-leading personalization experience Nov. 28-30 at The Running Event in Austin, Texas, where the company will create personalized Brooks Levitate RS shoes for select attendees. The new footwear will roll out to runners in June 2018 via special order through select retail partners. A list of participating retailers can be found at www.superfeet.com/fitstation.

Posted December 4, 2017

Source: Brooks Running Co.

Wilsonart To Acquire Mermaid Panels & Shore Laminates

AUSTIN, Texas — December 1, 2017 — Wilsonart Engineered Surfaces, the global manufacturer and distributor of engineered surfaces, today announced an agreement to acquire Mermaid Panels Ltd & Shore Laminates Ltd., the England-based manufacturer of shower walls and wall panel systems.

“Shore & Mermaid bring exciting design and innovative products to the market,” said Tim Pearson, president, Wilsonart Western Europe. “The addition of these two companies to the Wilsonart portfolio reinforces our commitment to providing surfacing solutions for a wide range of interior demands.”

“Shore & Mermaid are good complements to Wilsonart’s other European businesses, including brand leaders Polyrey and Resopal,” said Tim O’Brien, CEO, Wilsonart Engineered Surfaces. “Wilsonart acquired Bushboard, the leading producer of wet wall systems and worktops, in 2016. Shore & Mermaid provide additional depth and new technologies to broaden Wilsonart’s engineered surfaces story. As part of the Wilsonart portfolio, both brands have significant opportunity to expand into new geographies across Europe.”

The transition will take place beginning Dec 1. There will be no changes to the way that current customers access Shore & Mermaid products.

Posted December 4, 2017

Source: Wilsonart Engineered Surfaces

Columbia Sportswear Launches Collection Inspired by Star Wars: The Empire Strikes Back — Limited Edition Jackets Celebrating Classic Film For Sale December 8

PORTLAND, Ore. — December 4, 2017 — Columbia Sportswear today unveiled three limited-edition jackets inspired by iconic characters in Star Wars: The Empire Strikes Back. The officially licensed collection will be available in limited quantities on www.columbia.com/starwars and at Columbia’s brand retail locations in the United States and select countries beginning Friday, December 8.

Inspired by the costumes worn by Han Solo, Princess Leia and Luke Skywalker, the collection is named after the Rebel’s secret base on ice planet Hoth. In developing the Echo Base Collection, Columbia’s designers worked closely with Lucasfilm and the archives team to capture and incorporate the smallest of details of the original jackets worn in the classic film. The collection is constructed with Columbia’s “Tested Tough” promise, and delivers the brand’s industry-leading technologies to ensure that they stand up to the freezing conditions on planet Hoth, or other galaxies closer to home. Details on each jacket follow:

Leia Organa™ Echo Base Jacket: Stand fearless against both the Empire and the ice planet Hoth with the limited-edition Leia Organa™ Echo Base jacket. Inspired by Leia’s original costume featured in Star Wars: The Empire Strikes Back, this versatile jacket and vest combination is crafted of a durable, water-resistant, cotton-blend fabric and insulated with Omni-Heat™ Reflective lining. With a vintage look, flattering feminine fit, and eye-catching details—including stowable hood, princess seam piping, and gusset sleeves—you’ll stay comfortable and confident whether you’re taking on the elements or staring down a Star Destroyer in a galaxy far, far away…. (MSRP: $400)

Luke Skywalker™ Echo Base Jacket: The limited-edition Luke Skywalker™ Echo Base jacket will keep you warmer than a tauntaun while you take on the Empire. This durable cotton-blend, water-resistant jacket and vest combination with a stowable hood is inspired by Luke’s original Hoth costume in Star Wars: The Empire Strikes Back and features Omni-Heat™ Reflective insulation to conserve body heat. You’ll stay warm and dry whether you’re patrolling an ice planet or getting ready for a duel with your father. (MSRP: $400)

Han Solo™ Echo Base Parka: When cold weather hits, the limited-edition Han Solo™ Echo Base parka will keep you warmer than a hug from your favorite Wookiee. Crafted of durable water-resistant, cotton-blend fabric and insulated with Omni-Heat™ Reflective lining, it’s a lot like Han—rugged and durable on the outside, warm and full of surprises on the inside. Inspired by Han’s original Hoth jacket in Star Wars: The Empire Strikes Back, the jacket features multiple closures, a leather Rebel patch, and quilted faux-fur trimmed hood to allow you to slip past bounty hunters incognito whether you’re on ice planet Hoth or closer to home. (MSRP: $400)

After consulting the Star Wars archives, Columbia drew inspiration from the original on set Han Solo dark brown jacket worn on planet Hoth. In honor of this epic film, Columbia produced an extremely limited run of the dark brown Han Solo Archive Edition parkas (MSRP: $1980). Further, Columbia has collaborated with Harrison Ford in this endeavor to raise funds for Conservation International, a global organization dedicated to the protection of nature. Harrison hand-signed each of these brown Han Solo Archive Edition parkas, and Columbia will donate 100% of the proceeds from their sale to Conservation International. For more information on how to purchase or to enter to win one of these iconic jackets, go to select Columbia Brand Retail Stores to sign up. Additional details at www.columbia.com/starwars.

To commemorate the 1980 release of Star Wars: The Empire Strikes Back, only 1,980 jackets of each style in the broad Echo Base Collection were produced. These premium jackets are individually numbered and contain several references to Star Wars and the characters who wore them. The collection was inspired by the original costumes that are currently maintained at the Skywalker Ranch archives.

The jackets will be available in limited quantities on www.columbia.com/starwars at 12:01am EST and at store opening in Columbia branded retail locations in the US, Canada, Europe, China, Hong Kong, Japan and Korea.

Posted December 4, 2017

Source: Columbia Sportswear Co.

3M Files Patent Infringement Lawsuit To Protect Dental Restorative Technology

ST. PAUL, Minn. — December 4, 2017 — 3M and 3M Innovative Properties Co. filed a patent infringement lawsuit in federal district court in Wilmington, Del., last week against Kerr Corp. The suit alleges that Kerr’s SonicFill™ 2 and Harmonize™ dental composite materials infringe 3M’s patent rights directed to nanotechnology used in 3M FiltekSupreme universal dental restoratives.

3M’s patented nanotechnology enables high aesthetic quality, strength and wear resistance. Filtek Supreme Universal Restorative was the first nanotechnology-based dental composite utilizing engineered nanoparticles that result in unsurpassed polish retention, excellent strength, and wear resistance. Over 600 million restorations have been performed globally using the Filtek Supreme universal restorative product line.

3M’s Oral Care Solutions Division is committed to improving oral care through continuous investments in research and development and is recognized globally as one of the most innovative dental companies.

“As an industry leader, we are committed to protecting our innovative nanotechnology and associated intellectual property,” said Eric Wenzel, global business director, 3M Oral Care Solutions Division.

Posted December 4, 2017

Source: 3M

New Reebok ZPrint Work Brings 3-D Foot-Mapped Technology To Work Footwear

LOUIS, Mo. — December 4, 2017 — Warson Brands, official licensee of Reebok for occupational footwear, introduces the new Reebok ZPrint Work line of work shoes. The series includes several styles for men and women.

With a unique 3-D foot-mapped midsole, the Reebok ZPrint Work is a work shoe with a foundation engineered for excellent foot-tracking and cushioning. The underfoot materials are composed of three unique materials: a foot-mapped foam midsole for targeted cushioning on impact, a higher density grid perimeter that provides stability, and a slip- and abrasion-resistant rubber outsole with a high coefficient of friction.

“The Reebok ZPrint Work provides a truly unique underfoot experience for men and women; a combination of comfort, flexibility and stability,” says John Duvic, VP of Product Development at Warson Brands. “The midsole is inspired by 3-D foot scan maps, whereby we modeled the midsole around the contours of the human foot, for a shoe that has cushioning where it matters. It’s a work shoe that has plenty of cushioning without sacrificing the stability that industrial workers require.”

The ZPrint Work also features a MemoryTech Massage footbed that adapts to the unique contours of the foot and a steel toe meets or exceeds ASTM F2413 safety standards. The RB4250, RB4252, RB253 and RB255 provide electrical hazard protection, while the RB4251, RB251 and RB254 are static dissipative with a patented dual-resistor system that reliably delivers a precise range of electrical resistance for people working with sensitive electronic devices.

Reebok work footwear and the ZPrint Work series are available from select retailers throughout the United States at an MSRP of $114 to $122 depending on features.

Posted December 4, 2017

Source: Warson Brands

Two New C-Ply™ Applications: At The CAMX 2017 Expo, Chomarat Will Present A Carbon Drone Wing And A Carbon Kayak

LE CHEYLARD, France — December 4, 2017 — CHOMARAT is presenting two new applications using C-PLY™, its innovative carbon multiaxial Non Crimp Fabric (NCF). For the first time, the specialist in composite reinforcements will exhibit a drone wing designed in partnership with VX Aerospace and Northrup Grumman Corporation and a kayak created in partnership with Confluence Outdoor at its stand (N 44) at the CAMX Expo.

A Drone Called “Dash X”, With A C-Ply™ Wing

Chomarat will exhibit a drone wing called DASH X, a Class II UAV that was created in partnership with VX Aerospace and Northrup Grumman Corporation. The drone can be folded and stowed inside a cylindrical container that is carried and deployed from a tactical aircraft. C-PLY is used in the construction of the wing, the horizontal stabilizers, the vertical fin and all of the control surfaces. “When it comes to wing skins, there is not a better material. The extremely thin non-crimped laminate with customizable ply angles is perfect. Strength and stiffness are tailored for the loads. There are no weight and performance compromises created by undesired ‘off-axis’ ply angles. No other hand-placeable material can do this”, says VX Aerospace Chief Engineer Bob Skillen.

An Ultralight, All-Carbon Kayak

Chomarat will also be exhibiting an ultralight, all-carbon kayak, the product of a collaborative project with Confluence Outdoor, a leading kayak manufacturer. Chomarat’s carbon C-PLY was chosen for its mechanical properties, which increase the kayak’s performance ten times compared to a classic construction.
“We chose C-PLY for the incredible mechanical properties of the non-crimp fabric. The ability to reduce the number of plies to have strength that is equal to that of its woven counterparts has helped us produce a lightweight kayak that can push the boundaries of our sport and achieve something that has never been done successfully by anyone else.

The added benefit of being able to choose the fiber angle allows us to place material in an optimal position for our boat shape and get the directional stiffness we require. Linking this with the ease of working with the Chomarat team and the ability to build a close and trusted working relationship has given us the ability to create a product that is far beyond our competitors’ reach, and takes the next innovative step within our industry,” explains Oliver Wainwright, product engineer of Confluence Outdoor.

Posted December 4, 2017

Source: CHOMARAT

ASTM International Releases New Brand Video: “Connecting the Dots”

CONSHOHOCKEN, Pa. — December 4, 2017 — Today, ASTM International released a new video that tells the organization’s story through the eyes of a technical expert as she goes to work, develops standards, uses helpful tools, and builds partnerships.

The video was shown at the kickoff of two concurrent ASTM International “committee week” events held this week in Houston and New Orleans where thousands of the organization’s members will create and update standards. The Houston meetings involve fields such as petroleum, bioenergy, and commercial spaceflight while the New Orleans meetings involve cement, concrete, masonry, road materials, roofing, rubber, carbon black, fire safety, and more.

“I’m thrilled to release this succinct and powerful video that reflects ASTM International’s mission,” said Katharine Morgan, who became president in February. “In just 90 seconds, it captures how we are working with our members, customers, and partners to help our world work better.”

The video transcript is below:

Whether you go to an office, a lab, or a worksite each day… you see how technical standards support quality, safety, innovation, and trade.

As your organization grows and industries evolve, standards must keep pace.

ASTM International is open to anyone who wants to help create or update standards.  Every voice is heard in our committees, where the world’s most respected experts develop the world’s most respected standards.

The Compass platform provides constant access to the latest standards across dozens of industries… with tools to help your team collaborate and make informed decisions.

We’re also here to prepare you for accreditation or certify your products.

Training and e-learning show test methods in action, providing the skills and confidence to perform tests correctly.

When your industry or nation needs a leader across all of these areas, we can be your partner.

For standards and all your needs surrounding them, we connect the dots – in your workplace… in your career… and in your daily life. Together, we are helping our world work better.

The video is also available with Spanish and Mandarin voiceovers.

The organization plans to send a small gift to members and customers who mention on social media how ASTM International helps them “connect the dots” in their work, tagging ASTM International’s Twitter (@ASTMIntl) and/or Facebook accounts.

Posted December 4, 2017

Source: ASTM International

AmeriPride Twin Falls Laundry Receives Hygienically Clean Certification

ALEXANDRIA, Va. — December 1, 2017 — AmeriPride Services Inc., Twin Falls, Idaho, has earned Hygienically Clean Food Safety certification, reflecting their commitment to best management practices (BMPs) in laundering as verified by on-site inspection and their capability to produce hygienically clean textiles as quantified by ongoing microbial testing.

The certification confirms the laundry’s dedication to compliance and processing garments and linens using BMPs as described in its quality assurance documentation, the focal point for inspectors’ evaluation of critical control points (CCPs) that minimize risk. The independent, third-party inspection must confirm essential evidence that:

  • Employees are properly trained and protected
  • Managers understand legal requirements
  • OSHA-compliant
  • Physical plant operates effectively

In addition, the AmeriPride facility passed three rounds of outcome-based microbial testing, indicating that their processes are producing Hygienically Clean garments and linens and zero presence of harmful bacteria. To maintain their certification, laundry plants must pass quarterly testing to ensure that as laundry conditions change, such as water quality, textile fabric composition and wash chemistry, laundered product quality is consistently maintained.

This process eliminates subjectivity by focusing on outcomes and results that verify textiles cleaned in these facilities meet appropriate hygienically clean standards and BMPs for animal processing, dairies, fruit/vegetable, bakeries, grain and other food and beverage industry segments.

The Twin Falls facility is the third in the AmeriPride chain to receive the Hygienically Clean Food Safety certification; the company’s Fresno, Calif., and St. Cloud, Minn., laundries earned the designation earlier this year. The Twin Falls laundry previously earned Hygienically Clean Healthcare certification for serving hospitals, surgery centers, medical offices, nursing homes and other medical facilities. Another 10 of the company’s U.S. locations have achieved the healthcare certification: Little Rock, Ark.; Phoenix; Watkinsville, Ga.; Topeka, Kan.; Bemidji and Minneapolis, Minn.; Springfield, Mo.; Omaha, Neb.; Memphis, Tenn.; and Lubbock, Texas. The company’s Canadian Linen and Uniform Service facility in Lethbridge, Alberta, is also Hygienically Clean Healthcare certified.

Hazard Analysis and Critical Control Points (HACCP) practices are examined in the Hygienically Clean Food Safety inspection process, evaluating the plant’s techniques for:

  • Conducting hazard analysis
  • Determining CCPs, monitoring their control, correcting them if not under control
  • Validating and verifying HACCP system effectiveness
  • Documenting and record-keeping to show ongoing conformance

On-site inspections also evaluate practices relevant to handling and processing textile products used in food manufacturing/processing establishments for adherence to U.S. Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC) directives. Introduced in 2014, Hygienically Clean Food Safety brought to North America the international cleanliness standards for laundering garments and other textile products for food manufacturing used worldwide by the Certification Association for Professional Textile Services and the European Committee for Standardization.

In October, Minneapolis-based AmeriPride and Aramark Corp., Philadelphia, announced a definitive agreement under which Aramark will acquire AmeriPride. The combination adds AmeriPride to Aramark’s uniform rental and career apparel business, headquartered in Burbank, Calif.

Posted December 1, 2017

Source: TRSA

PMI® At 58.2 Percent; November Manufacturing ISM® Report On Business®

TEMPE, Ariz. — December 1, 2017 — Economic activity in the manufacturing sector expanded in November, and the overall economy grew for the 102nd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. “The November PMI® registered 58.2 percent, a decrease of 0.5 percentage point from the October reading of 58.7 percent. The New Orders Index registered 64 percent, an increase of 0.6 percentage point from the October reading of 63.4 percent. The Production Index registered 63.9 percent, a 2.9 percentage point increase compared to the October reading of 61 percent. The Employment Index registered 59.7 percent, a decrease of 0.1 percentage point from the October reading of 59.8 percent. The Supplier Deliveries Index registered 56.5 percent, a 4.9 percentage point decrease from the October reading of 61.4 percent. The Inventories Index registered 47 percent, a decrease of 1 percentage point from the October reading of 48 percent. The Prices Index registered 65.5 percent in November, a 3 percentage point decrease from the October level of 68.5, indicating higher raw materials prices for the 21st consecutive month. Comments from the panel reflect expanding business conditions, with new orders and production leading gains, employment expanding at a slower rate, order backlogs stable and expanding, and export orders all continuing to grow in November. Supplier deliveries continued to slow (improving), but at slower rates, and inventories continued to contract during the period. Price increases continued, but at a slower rate. The Customers’ Inventories Index improved but remains at low levels.”

Of the 18 manufacturing industries, 14 reported growth in November, in the following order: Paper Products; Machinery; Transportation Equipment; Computer & Electronic Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Printing & Related Support Activities; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Chemical Products; Furniture & Related Products; Fabricated Metal Products; Miscellaneous Manufacturing; and Primary Metals. Two industries reported contraction during the period: Wood Products; and Petroleum & Coal Products.

What Respondents Are Saying

  • “Continuing to see more orders for the next six to 12 months.” (Chemical Products)
  • “Strong sales through third and now fourth quarters. Backlog increasing, and capacity at suppliers tightening.” (Machinery)
  • “Business has leveled out but remains strong heading into the end of the year.” (Computer & Electronic Products)
  • “We are just coming off a record sales year. We expect to continue in 2018 robust activity.” (Miscellaneous Manufacturing)
  • “We are seeing steady, consistent demand for end of year. We usually see a slowdown, which we haven’t seen yet.” (Fabricated Metal Products)
  • “Overall industry demand remains strong. Continue to have a healthy backlog of orders. Local economy is also strong, with a fairly tight labor market.” (Transportation Equipment)
  • “Business is strong. Employment is tight. Supplier deliveries have lengthened. A few suppliers are still blaming Hurricane Harvey for the lead times.” (Food, Beverage & Tobacco Products)
  • “Strong season demand for products and continued requirements for uptime.” (Nonmetallic Mineral Products)
  • “Currently, we have not experienced the typical seasonal slowdown toward the end of Q4. Could be that there is a lot of optimism in the American economy.” (Plastics & Rubber Products)
MANUFACTURING AT A GLANCE

November 2017

Index Series Index

Nov

Series Index

Oct

Percentage

Point

Change

Direction Rate of Change Trend* (Months)
PMI® 58.2 58.7 -0.5 Growing Slower 15
New Orders 64.0 63.4 +0.6 Growing Faster 15
Production 63.9 61.0 +2.9 Growing Faster 15
Employment 59.7 59.8 -0.1 Growing Slower 14
Supplier Deliveries 56.5 61.4 -4.9 Slowing Slower 19
Inventories 47.0 48.0 -1.0 Contracting Faster 2
Customers’ Inventories 45.5 43.5 +2.0 Too Low Slower 5
Prices 65.5 68.5 -3.0 Increasing Slower 21
Backlog of Orders 55.0 55.0 0.0 Growing Same 10
New Export Orders 56.0 56.5 -0.5 Growing Slower 21
Imports 54.5 54.0 +0.5 Growing Faster 10
OVERALL ECONOMY

Manufacturing Sector

Growing Slower 102
Growing Slower 15

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.

COMMODITIES REPORTED UP/DOWN IN PRICE AND IN SHORT SUPPLY

Commodities Up in Price
Aluminum (13); Caustic Soda (5); Copper; Corrugate (14); Nickel Based Metals; Pallets; Plastic Resins (4); Polycarbonate; Polyethylene (3); Polypropylene (3); Resin Based Products; Silicone; Soybean Oil; Steel – Hot Rolled (12); Steel Tubing; Titanium Dioxide (2); and Zinc Oxide.

Commodities Down in Price
None.

Commodities in Short Supply
Capacitors (5); Resistors; and Titanium Dioxide.

Note: The number of consecutive months the commodity is listed is indicated after each item.

NOVEMBER 2017 MANUFACTURING INDEX SUMMARIES

PMI®

Manufacturing expanded in November as the PMI® registered 58.2 percent, a decrease of 0.5 percentage point from the October reading of 58.7 percent. “This indicates growth in manufacturing for the 15th consecutive month led by expansion in New Orders and Production, offset by Supplier Delivery improvement and declines in raw material Inventory,” Fiore said. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

A PMI above 43.3 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the November PMI indicates growth for the 102nd consecutive month in the overall economy and the 15th straight month of growth in the manufacturing sector. Fiore says, “The past relationship between the PMI and the overall economy indicates that the average PMI for January through November (57.4 percent) corresponds to a 4.5 percent increase in real gross domestic product (GDP) on an annualized basis. In addition, if the PMI for November (58.2 percent) is annualized, it corresponds to a 4.7 percent increase in real GDP annually.”

The Last 12 Months

Month PMI® Month PMI
Nov 2017 58.2 May 2017 54.9
Oct 2017 58.7 Apr 2017 54.8
Sep 2017 60.8 Mar 2017 57.2
Aug 2017 58.8 Feb 2017 57.7
Jul 2017 56.3 Jan 2017 56.0
Jun 2017 57.8 Dec 2016 54.5
Average for 2017 – 57.4

Average for 12 months – 57.1

High – 60.8

Low – 54.5

New Orders

ISM’s New Orders Index registered 64 percent in November, which is an increase of 0.6 percentage point when compared to the 63.4 percent reported for October, indicating growth in new orders for the 15th consecutive month. “New Order expansion continues at a strong pace with the index at six straight months of levels above 60 percent,” said Fiore. A New Orders Index above 52.3 percent, over time, is generally consistent with an increase in the Census Bureau’s series on manufacturing orders (in constant 2000 dollars).

Fourteen of 18 industries reported growth in new orders in November, listed in the following order: Electrical Equipment, Appliances & Components; Paper Products; Furniture & Related Products; Plastics & Rubber Products; Machinery; Primary Metals; Printing & Related Support Activities; Computer & Electronic Products; Transportation Equipment; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Chemical Products; Miscellaneous Manufacturing; and Fabricated Metal Products. Two industries — Wood Products; and Textile Mills — reported a decrease in new orders in November compared to October.

New Orders %Better %Same %Worse Net Index
Nov 2017 31 60 9 +22 64.0
Oct 2017 35 52 13 +22 63.4
Sep 2017 35 56 9 +26 64.6
Aug 2017 33 52 15 +18 60.3

Production

ISM’s Production Index registered 63.9 percent in November, which is an increase of 2.9 percentage points when compared to the 61 percent reported for October, indicating growth in production for the 15th consecutive month. This is the highest reading since March 2011, when the index registered 64.2 percent. “Production expansion continues at levels that kept pace with new orders, consumed raw material inventory and positively impacted customer inventory,” says Fiore. An index above 51.4 percent, over time, is generally consistent with an increase in the Federal Reserve Board’s Industrial Production figures.

The 14 industries reporting growth in production during the month of November — listed in order — are:  Paper Products; Furniture & Related Products; Plastics & Rubber Products; Transportation Equipment; Machinery; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Printing & Related Support Activities; Computer & Electronic Products; Chemical Products; Primary Metals; Miscellaneous Manufacturing; and Nonmetallic Mineral Products. No industry reported a decrease in production in November compared to October.

Production %Better %Same %Worse Net Index
Nov 2017 33 59 8 +25 63.9
Oct 2017 30 59 11 +19 61.0
Sep 2017 31 59 10 +21 62.2
Aug 2017 32 56 12 +20 61.0

Employment

ISM’s Employment Index registered 59.7 percent in November, a decrease of 0.1 percentage point when compared to the October reading of 59.8 percent. This indicates growth in employment in November for the 14th consecutive month. “Employment expansion remains strong in spite of signs of labor market tightening,” says Fiore. An Employment Index above 50.5 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.

Of the 18 manufacturing industries, the 11 reporting employment growth in November — listed in order — are: Textile Mills; Machinery; Computer & Electronic Products; Transportation Equipment; Paper Products; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Chemical Products; Fabricated Metal Products; and Petroleum & Coal Products. Two industries — Apparel, Leather & Allied Products; and Electrical Equipment, Appliances & Components —   reported a decrease in employment in November.

Employment %Higher %Same %Lower Net Index
Nov 2017 23 70 7 +16 59.7
Oct 2017 25 68 7 +18 59.8
Sep 2017 24 69 7 +17 60.3
Aug 2017 26 67 7 +19 59.9

 

Supplier Deliveries

The delivery performance of suppliers to manufacturing organizations was slower in November, as the Supplier Deliveries Index registered 56.5 percent. This is 4.9 percentage points lower than the 61.4 percent reported for October. “This is the 19th straight month of slowing supplier deliveries, and reflects delivery performance improvement over the prior month, but still insufficient to maintain raw material inventory levels,” says Fiore. A reading below 50 percent indicates faster deliveries, while a reading above 50 percent indicates slower deliveries.

The 10 industries reporting slower supplier deliveries in November — listed in order — are: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Paper Products; Machinery; Computer & Electronic Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Chemical Products; Miscellaneous Manufacturing; and Fabricated Metal Products. Three industries — Furniture & Related Products; Primary Metals; and Electrical Equipment, Appliances & Components — reported faster deliveries in November compared to October.

Supplier Deliveries %Slower %Same %Faster Net Index
Nov 2017 21 68 11 +10 56.5
Oct 2017 26 69 5 +21 61.4
Sep 2017 32 64 4 +28 64.4
Aug 2017 18 78 4 +14 57.1

 

Inventories*

The Inventories Index registered 47 percent in November, which is a decrease of 1 percentage point when compared to the 48 percent reported for October, indicating raw materials inventories contracted in November. “The inventory contraction reflects the continued difficulty of the supply chain to deliver materials and services meeting production schedules,” said Fiore. An Inventories Index greater than 42.9 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).

The five industries reporting higher inventories in November are: Printing & Related Support Activities; Transportation Equipment; Machinery; Chemical Products; and Primary Metals. The 11 industries reporting lower inventories in November — listed in order —  are: Wood Products; Textile Mills; Paper Products; Furniture & Related Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Fabricated Metal Products; Computer & Electronic Products; and Nonmetallic Mineral Products.

Inventories %Higher %Same %Lower Net Index
Nov 2017 16 62 22 -6 47.0
Oct 2017 17 62 21 -4 48.0
Sep 2017 22 61 17 +5 52.5
Aug 2017 22 67 11 +11 55.5

 

Customers’ Inventories*

ISM’s Customers’ Inventories Index registered 45.5 percent in November, which is 2 percentage points higher than the 43.5 percent reported for October, indicating that customers’ inventory levels were still considered too low in November. “The index remains at low levels and continues to contract, but November performance indicates that production output made some improvement in meeting customer inventory requirements,” said Fiore.

Three manufacturing industries — Furniture & Related Products; Miscellaneous Manufacturing; and Food, Beverage & Tobacco Products — reported customers’ inventories as being too high during the month of November. The eight industries reporting customers’ inventories as too low during November — listed in order — are: Primary Metals; Electrical Equipment, Appliances & Components; Paper Products; Chemical Products; Computer & Electronic Products; Machinery; Fabricated Metal Products; and Transportation Equipment. Seven industries reported no change in customer inventories in November compared to October.

Customers’
Inventories % 
Reporting %Too
High %About
Right %Too
Low Net Index
Nov 2017 57 9 73 18 -9 45.5
Oct 2017 54 9 69 22 -13 43.5
Sep 2017 58 6 72 22 -16 42.0
Aug 2017 55 5 72 23 -18 41.0

 

Prices*

The ISM Prices Index registered 65.5 percent in November, a decrease of 3 percentage points from the October level of 68.5 percent, indicating an increase in raw materials prices for the 21st consecutive month. In November, 37 percent of respondents reported paying higher prices, 6 percent reported paying lower prices, and 57 percent of supply executives reported paying the same prices as in October. “The Business Survey Committee noted price increases continue most notably in primary materials, including metals (steel, aluminum, copper, nickel based metals); basic and intermediate chemicals; corrugate, plastic resins and parts made from plastic resins,” says Fiore. A Prices Index above 52.4 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Producer Price Index for Intermediate Materials.

Fifteen industries reported paying increased prices for raw materials in November, in the following order: Nonmetallic Mineral Products; Plastics & Rubber Products; Textile Mills; Machinery; Food, Beverage & Tobacco Products; Paper Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components;  Fabricated Metal Products; Transportation Equipment; Petroleum & Coal Products; Furniture & Related Products; Chemical Products; Primary Metals; and Computer & Electronic Products. No industry reported price decreases in November compared to October.

Prices %Higher %Same %Lower Net Index
Nov 2017 37 57 6 +31 65.5
Oct 2017 43 51 6 +37 68.5
Sep 2017 45 53 2 +43 71.5
Aug 2017 30 64 6 +24 62.0

 

Backlog of Orders*

ISM’s Backlog of Orders Index registered 55 percent in November, the same level of expansion as the 55 percent reported for October, indicating growth in order backlogs for the 10th consecutive month. “Backlog expansion has stabilized during the period, consistent with October and at pre-Hurricane levels. This provides strong support to continued manufacturing expansion,” said Fiore. Of the 92 percent of respondents who reported their backlog of orders, 25 percent reported greater backlogs, 15 percent reported smaller backlogs, and 60 percent reported no change from October.

The 11 industries reporting growth in order backlogs in November — listed in order — are: Apparel, Leather & Allied Products; Paper Products; Primary Metals; Furniture & Related Products; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Machinery; Petroleum & Coal Products; Computer & Electronic Products; Transportation Equipment; and Food, Beverage & Tobacco Products. The four industries reporting a decrease in order backlogs during November are: Wood Products; Fabricated Metal Products; Plastics & Rubber Products; and Miscellaneous Manufacturing.

Backlog of 
Orders % 
Reporting %Greater %Same %Less Net Index
Nov 2017 92 25 60 15 +10 55.0
Oct 2017 88 26 58 16 +10 55.0
Sep 2017 89 29 58 13 +16 58.0
Aug 2017 90 28 59 13 +15 57.5

 

New Export Orders*

ISM’s New Export Orders Index registered 56 percent in November, a decrease of 0.5 percentage point when compared to the 56.5 percent reported for October, indicating growth in new export orders for the 21st consecutive month. “All six big industry sectors continued to expand export activity during the period,” said Fiore.

The eight industries reporting growth in new export orders in November — listed in order — are: Paper Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Transportation Equipment; Miscellaneous Manufacturing; Computer & Electronic Products; Machinery; and Chemical Products. One industry — Fabricated Metal Products — reported a decrease in new export orders. Nine industries reported no change in export orders in November compared to October.

New Export
Orders %
Reporting %Higher %Same %Lower Net Index
Nov 2017 80 14 84 2 +12 56.0
Oct 2017 77 17 79 4 +13 56.5
Sep 2017 78 18 78 4 +14 57.0
Aug 2017 81 16 79 5 +11 55.5

 

Imports*

ISM’s Imports Index registered 54.5 percent in November, an increase of 0.5 percentage point when compared to the 54 percent reported for October, indicating that imports grew in November for the 10th consecutive month.

The 11 industries reporting growth in imports during the month of November — listed in order — are: Textile Mills; Primary Metals; Printing & Related Support Activities; Nonmetallic Mineral Products; Transportation Equipment; Computer & Electronic Products; Machinery; Miscellaneous Manufacturing; Fabricated Metal Products; Chemical Products; and Paper Products. Two industries — Food, Beverage & Tobacco Products; and Electrical Equipment, Appliances & Components — reported a decrease in imports during November compared to October.

Imports %
Reporting %Higher %Same %Lower Net Index
Nov 2017 82 14 81 5 +9 54.5
Oct 2017 80 16 76 8 +8 54.0
Sep 2017 83 14 80 6 +8 54.0
Aug 2017 83 16 77 7 +9 54.5

*The Inventories, Customers’ Inventories, Prices, Backlog of Orders, New Export Orders and Imports Indexes do not meet the accepted criteria for seasonal adjustments.

Buying Policy

Average commitment lead time for Capital Expenditures decreased in November to 140 days from 145 days. Average lead time for Production Materials decreased by 1 day to 59 days. Average lead time for Maintenance, Repair and Operating (MRO) Supplies increased by 4 days to 37 days.

Percent Reporting
Capital
Expenditures Hand-to-
Mouth 30 
Days 60 
Days 90 
Days 6 
Months 1 Year+ Average
Days
Nov 2017 19 7 10 18 28 18 140
Oct 2017 20 5 13 18 22 22 145
Sep 2017 20 8 11 15 26 20 142
Aug 2017 19 7 12 17 25 20 143
Production 
Materials Hand-to-
Mouth 30 
Days 60
Days 90 
Days 6 
Months 1 Year+ Average 
Days
Nov 2017 11 37 26 19 6 1 59
Oct 2017 13 36 26 17 6 2 60
Sep 2017 11 34 29 18 6 2 62
Aug 2017 12 38 24 18 6 2 61
MRO Supplies Hand-to-
Mouth 30 
Days 60 
Days 90 
Days 6
Months 1 Year+ Average
Days
Nov 2017 32 38 19 8 3 0 37
Oct 2017 34 40 19 5 2 0 33
Sep 2017 33 39 19 7 2 0 35
Aug 2017 31 42 18 6 3 0 36

 

About This Report

DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report’s information reflects the entire U.S., while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of November 2017.

The data presented herein is obtained from a survey of manufacturing supply executives based on information they have collected within their respective organizations. ISM makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.

Data and Method of Presentation

The Manufacturing ISM Report On Business is based on data compiled from purchasing and supply executives nationwide. Membership of the Manufacturing Business Survey Committee is diversified by NAICS, based on each industry’s contribution to gross domestic product (GDP). Manufacturing Business Survey Committee responses are divided into the following NAICS code categories: Food, Beverage & Tobacco Products; Textile Mills; Apparel, Leather & Allied Products; Wood Products; Paper Products; Printing & Related Support Activities; Petroleum & Coal Products; Chemical Products; Plastics & Rubber Products; Nonmetallic Mineral Products; Primary Metals; Fabricated Metal Products; Machinery; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Furniture & Related Products; and Miscellaneous Manufacturing (products such as medical equipment and supplies, jewelry, sporting goods, toys and office supplies).

Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (New Orders, Backlog of Orders, New Export Orders, Imports, Production, Supplier Deliveries, Inventories, Customers’ Inventories, Employment and Prices), this report shows the percentage reporting each response, the net difference between the number of responses in the positive economic direction (higher, better and slower for Supplier Deliveries) and the negative economic direction (lower, worse and faster for Supplier Deliveries), and the diffusion index. Responses are raw data and are never changed. The diffusion index includes the percent of positive responses plus one-half of those responding the same (considered positive).

The resulting single index number for those meeting the criteria for seasonal adjustments (PMI, New Orders, Production, Employment and Supplier Deliveries) is then seasonally adjusted to allow for the effects of repetitive intra-year variations resulting primarily from normal differences in weather conditions, various institutional arrangements, and differences attributable to non-moveable holidays. All seasonal adjustment factors are subject annually to relatively minor changes when conditions warrant them. The PMI is a composite index based on the diffusion indexes of five of the indexes with equal weights: New Orders (seasonally adjusted), Production (seasonally adjusted), Employment (seasonally adjusted), Supplier Deliveries (seasonally adjusted), and Inventories.

Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. A PMI reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally declining. A PMI above 43.3 percent, over a period of time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 43.3 percent, it is generally declining. The distance from 50 percent or 43.3 percent is indicative of the strength of the expansion or decline. With some of the indicators within this report, ISM has indicated the departure point between expansion and decline of comparable government series, as determined by regression analysis. The Manufacturing ISM Report On Business survey is sent out to Manufacturing Business Survey Committee respondents the first part of each month. Respondents are asked to ONLY report on information for the current month. ISM receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses in order to give the most accurate picture of current business activity. ISM then compiles the report for release on the first business day of the following month.

The industries reporting growth, as indicated in the Manufacturing ISM Report On Business monthly report, are listed in the order of most growth to least growth. For the industries reporting contraction or decreases, those are listed in the order of the highest level of contraction/decrease to the least level of contraction/decrease.

Responses to Buying Policy reflect the percent reporting the current month’s lead time, the approximate weighted number of days ahead for which commitments are made for Capital Expenditures; Production Materials; and Maintenance, Repair and Operating (MRO) Supplies, expressed as hand-to-mouth (five days), 30 days, 60 days, 90 days, six months (180 days), a year or more (360 days), and the weighted average number of days. These responses are raw data, never revised, and not seasonally adjusted since there is no significant seasonal pattern.

Posted December 1, 2017

Source: Institute for Supply Management

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