Wolverine Worldwide Advances Transformation Initiatives

ROCKFORD, Mich. — December 18, 2023 Wolverine World Wide Inc. announced strategic actions that further focus the company’s portfolio and advance its ongoing transformation into a consumer-obsessed growth company.

“We’ve taken fast, bold, and decisive actions to stabilize the company today, while working to transform Wolverine Worldwide for the future,” said Chris Hufnagel, president and CEO. “Our actions over the past four months have served to simplify our business model, reduce our cost structure, and strengthen our balance sheet. While our work isn’t done, we enter the new year with a clear vision for the future, enhanced ability to invest in our brands and platforms, and ultimately, a better position to deliver stronger returns for our shareholders.”

New Operating Model for Merrell and Saucony in China

Strategic actions announced today include evolving and optimizing the company’s successful Merrell and Saucony joint venture in China by entering into agreements for a total amount of $61 million to (a) accelerate an existing option to sell a minority ownership interest in the entity that owns the Saucony intellectual property in China to Xtep, its joint venture partner, and (b) sell the Company’s equity interest in the Merrell and Saucony joint venture entities to Xtep.

Wolverine Worldwide formed a joint venture with Xtep in 2019 to launch the Merrell and Saucony brands in China. Xtep is a powerful vertical player in the fast-growing sportswear market, with over 8,200 stores in Asia-Pacific, North America, and EMEA, and a strong network of distributors and shopping mall operators.

Under the joint venture agreement, Xtep held the option to purchase a 40-percent minority ownership interest in the entity that owns the Saucony intellectual property in China if the business met certain financial targets. Due to the early success and profitability of Saucony in China, the company and Xtep have agreed to accelerate the exercise of this purchase option.

The company and Xtep have also agreed for the company to sell its equity interest in the Merrell and Saucony joint venture entities to a wholly-owned subsidiary of Xtep, transitioning the business from a joint venture model to a license and distribution rights model under which Xtep will exclusively carry out the development, marketing and distribution of footwear, apparel and accessories for the Saucony and Merrell brands in China. This evolution underscores the growth prospects of these two brands in China, and is the result of the early success and maturity of the joint venture. The new operating model is expected to further leverage Xtep’s expertise and significant resources in China, unleashing the brands’ full potential in this key market while allowing Wolverine Worldwide to focus on brand-building by developing awesome products and telling amazing stories across its global footprint.

Selling Asia-based Leathers Business

Wolverine Worldwide has entered into a definitive agreement to sell its Asia-based Wolverine Leathers business to Interhides Public Company Limited, a current materials vendor of the Company, for approximately $9 million. This completes the company’s previously announced objective to sell its Wolverine Leathers business — further focusing the Company’s portfolio.

The actions announced today are in addition to the company’s previously-announced transactions, including:

  • Selling Keds in February 2023 for over $90 million;
  • Selling the Hush Puppies intellectual property in China, Hong Kong, and Macau in August 2023 for approximately $58.8 million; and
  • Selling the U.S. Wolverine Leathers business in August 2023 for approximately $6 million;

The previously-announced strategic alternatives process for the company’s Sperry brand is ongoing.

Wolverine will provide more detail regarding these actions and other strategic initiatives at the Annual ICR Conference on January 8, 2024.

Posted: December 18, 2023

Source: Wolverine World Wide Inc.

Saurer Technologies GmbH & Co. KG: Domotex 2024 Preview

KREFELD, Germany — December 14, 2023 — Experts from the flooring industry will meet from January 11-14, 2024, at the international Domotex trade fair in Hanover, Germany. Saurer Technologies is very pleased to welcome customers again at booth E27 in hall 5. Saurer’s service package includes engineering, technology, service and automation solutions.

Together with you, we are looking forward to Domotex 2024 and to a lively exchange with you. The world’s largest trade fair for floor coverings will take place again from January 11-14, 2024. We will be happy to welcome you at our stand E27 in hall 5.

One step ahead: CarpetCabler CarpetTwister 1.12 The decades-long success story of the CarpetCabler CarpetTwister writes a new chapter with the 1.12 series. High flexibility and increased productivity were just as much a focus during development as easy handling and optimised data connection. Through the symbiosis of state-of the-art technology and decades of experience, the new 1.12 offers an optimum of possibilities to produce high-quality strands for sophisticated carpets and other textiles – and in the most economical way.

Among its many impressive features, our CarpetCabler/CarpetTwister 1.12 offers an energy-saving spindle range and central computer-controlled balloon adjustment. Thanks to the fully electronic headstock with inverter drives for the spindle, take up and traverse motion, the 1.12 series offers highest flexibility and increasing productivity. With the new series, customers reliably and confidently master all the extraordinary demands of a constantly changing market. Great success in the market – Convincing innovations Since the market launch at ITMA Milan in 2023, we have been pleased to see a noticeable upturn in our projects. The impressive upgrades to the previous version have been very well received by the market. Among other things, the yarn length control per spindle is a welcome added value for our customers and unique in the product range.

Ready for recycling — We empower you for transforming the world of textiles Saurer has been very focussed on the topic of recycling in the textile value chain for years. Particularly in the field of R-PET and R-PA, we have enormously variable setting options on our machines. Our experts are happy to work out the optimum production parameters together with our customers.

TechnoCorder TC2 Plus — Artificial grass at its best The two-for-one twisting machine TechnoCorder TC2 for technical yarns is characterised by its worldwide unique productivity of up to 400 m/min delivery speed. The machine concept offers you ultimate flexibility in production, material and yarn counts of technical yarns. The TechnoCorder TC2 Plus offers a yarn lubrication device to ease further process steps. The latest feature, PreciWinding (TC2 Plus), features a newly developed take-up area for producing twist packages of outstanding quality. In the area of floor coverings, especially in the field of artificial grass, our TechnoCorder TC2 (Plus) offers optimum quality and flexibility.

Efficiency through automation solutions

Transition times are shortened due to an optimized material flow, which leads to higher efficiency of the production facility. The deployed personnel can concentrate on the essential operating processes, which leads to a noticeable increase in yarn quality within the production line. The automation solutions can be individually adapted and used in different areas of BCF yarn processing.

Perfect BCF yarns

Saurer’s core competence — achieving the best twisting quality — comes into play when processing BCF yarns with the direct cabling process. With Saurer systems, constant maintenance of the yarn speed, yarn tensions and residual elongation in the cabled filament strands are guaranteed, and the yarns thus always obtain the desired and uniform shape during subsequent heat-setting.

Technology consulting

As a service, Saurer offers its customers detailed examinations from its textile laboratory in Krefeld. Here, the customer’s material is tested for the essential parameters, the optimisation potential is determined and the customer receives precise technological recommendations for his facility.

Saurer offers more

With the service package in the areas of engineering, technology, service and automation, Saurer enables its customers to gain decisive added value in the challenging market environment of textile floor coverings.

Visit Saurer at Domotex. Our staff will be happy to talk to you in person and explain how you can benefit from our extensive range of services.

Posted: December 18, 2023

Source: Saurer Technologies GmbH & Co. KG

The International Textile Manufacturers Federation (ITMF): Wazir Advisors Private Ltd. (India) Joins ITMF As Corporate Member

ZÜRICH, Switzerland — December 18, 2023 — Wazir Advisors is a global management consulting firm based out of India offering well-researched and thoroughly analyzed strategic solutions, followed by turnkey implementations, joint ventures and merger & acquisitions in the textile, garment, technical textiles and retail & consumer goods industries. They work with their clients in business transformation to accelerate growth and enhance profitability. By forging cross-border alliances to tap global markets or by bringing the world’s best expertise, business ideas, and brands to the Indian market, they strive to combine the best of both of these worlds.

Christian Schindler, director general of ITMF, stated that “the knowledge base of ITMF is further strengthened by Wazir Advisors joining the Federation. Wazir Advisors is providing additional expertise as a recognized consultancy in the global textile, garment, technical textiles and retail industry & consumer goods. With their insights and network, they enrich the membership. Wazir will benefit from a unique international platform of high-level executives in a non-competitive environment that are spanning from fiber producers to retailers.”

Prashant Agarwal, joint managing director, pointed out that “the decision to join ITMF was easy after having attended the ITMF Annual Conferences. This conference is unique as it is bringing together high-level industry people from around the world who discuss trends, exchange opinions and best practices and build international networks. The ITMF data that is accessible to members is also very helpful to fully grasp the evolution on a global scale”

Posted: December 18, 2023

Source: The International Textile Manufacturers Federation (ITMF)

Pioneering, Interactive, Fascinating:  Heimtextil Trend Space 2024 Brings The Future To Life

Bio-engineered textiles – Credits: SPOTT trends & business for Heimtextil

FRANKFURT AM MAIN, Germany — December 18, 2023 — With the title “New Sensitivity”, the Heimtextil Trends 24/25 heralds a paradigm shift: away from trends as the driver towards transformation as the driving force. From 9 to 12 January 2024, trade visitors to Heimtextil will be able to experience what this means in real terms in the “Trend Space”. In addition to the relevant colour, theme and style worlds, the elaborately designed area in Hall 3.0 offers fascinating extras, including various networking and knowledge offers as well as interactive presentations on AI and AR.

Dreams of the future meet state-of-the-art in the global textile industry: The trend concept from the SPOTT trends & business studio focuses on the ongoing transformation of the textile industry and presents current lighthouse projects. These can be experienced in the “Trend Space” in Hall 3.0. Live demonstrations integrated into the trend worlds offer present groundbreaking alternatives relating to material extraction, production and dyeing and give the opportunity to exchange ideas personally with the innovators. In this way, Heimtextil Trends provides visitors with much more than “just” the upcoming colours and styles, but also opens up promising perspectives for a sustainable textile future.

Tour through Trend Space 2024

Experience more, discover more: “Trend Space” includes a total of four theme and trend worlds, a lecture area and various installations and material collections. The elaborate productions are largely implemented using the products of the Heimtextil exhibitors – this time the choice of materials is more sustainable than ever. In presentations, visitors can exchange ideas directly with international industry pioneers. In addition, the stations each convey one of the key colours of the 24/25 textile season.

Anyone going on tour with the audio guide in the “Heimtextil Navigator” starts in the “colour area”. The impressive staging illustrates the upcoming palette of trend shades and presents selected colouring processes from the companies Colorifix and Ever Dye in the workshop area.

The trend “technological textiles” develops the areas of upcycling and recycling as well as textile construction and design. At Variant 3D, visitors learn about pioneering 3D knitting technologies for a collaborative ecosystem. Following this trend world, they are immersed into the topics “walls & windows” and “bed & bath” whose contemporary design bridges the gap between decorative and functional aspects, innovation and well-being.

In the trend world of “bio-engineered textiles”, numerous exhibitor products and the companies Noosa, Pond Global and CiCLO will provide insights into how the fusion of plant-based and technical qualities is changing the way textiles are produced.

In the third trend “plant-based textiles” visitors experience the world of plant-based textile solutions. Companies such as Ettitude Materials, Desserto and Re-root tex Solution demonstrate live on site what is already possible in this field.

Between AI, AR and ASMR: tangible technology

In addition to the current trends and styles, “Trend Space” offers tangible presentations on technology highlights: The AI installation designed by the extended reality studio MANND and SPOTT trends & business lets visitors create their own AI-supported designs. At the neighbouring AR station, visitors can explore the augmented reality of Augmented Weaving. In her installation “Textile Thrills”, artist Olga Benedicte focuses on the topic of ASMR (autonomous sensory meridian response). Here, audiovisual and sensory effects make it possible to experience the thrill of textiles through the screen.

Material innovations: Fiber gallery and “Future Materials”

In collaboration with the technology stations, the Fibre gallery presents future compositions of textiles, including samples of the mycelium-based textile EPHEA developed by Mogu, textiles made from banana fibres from Bananatex, a bamboo-based leather alternative from Von Holzhausen and much more. The design consultancy FranklinTill curates its global showcase of cutting-edge textiles and materials. “Future Materials” is an integral part of “Trend Space”. The exhibition illustrates the principles of

Lecture program

Visitors will experience a real “Deep Dive” in the trend presentations by Anja Bisgaard Gaede, owner of SPOTT trends & business and lead of the Heimtextil Trends 24/25. The trend lectures take place twice a day, the guided tours once a day. In addition, the 2024 lecture program will impress with relevant topics and renowned experts, including Marta Giralt Dunjó (FranklinTill Studio) with her report on new materials, Anja Laursen and Bettina Lauridsen (NewRetex A/S) on AI solutions in recycling and Anne Marie Commandeur (stijlinstituut amsterdam) on the future of design.

All lectures and dates currently in the event calendar:

https://heimtextil.messefrankfurt.com/frankfurt/en/programme-events/events.html#/

Heimtextil

International trade fair for home and contract textiles
The Heimtextil event will take place from 9 to 12 January 2024.

Posted: December 18, 2023

Source: Messe Frankfurt Exhibition GmbH

Classic Denim Fabrics Can Be Sustainable:
 How To Upgrade Existing Rope Dyeing Ranges With A Double Operational System

MACHERIO, Italy — December 18, 2023 — During ITMA 2023, MASTER S.r.l. launched the revolutionary machines “CRAFTYFLOW” and “CRAFTYROPE” for the dyeing of denim warps with indigo and sulfur dyes: they are the only ones that, thanks to their dual-technology can work both in air, as usually done today, and in nitrogen atmosphere with ecological and economical advantages.

These machines are the results of several trials and the evolution of the concepts utilized in our original dyeing system in nitrogen atmosphere, based on the insertion in classic dyeing ranges of special modules (Genius). This system had been first adopted by M/s Bluref, pioneer of this technology, and, afterwards by other famous producers such as Covolan Ind. Textie, Candiani Denim, Sasha Denim, Advance Denim.

In order to develop our “CRAFTYFLOW” and “CRAFTYROPE”, we, at Master, have carried out several trials and experiments that have confirmed our new concepts and construction design, and that have also highlighted that the new multi-box concept is assuring many advantages in the process adjustment and higher flexibility compared with the previous idea of inserting specific modules.

Thanks to all these researches and experiments, we are glad to announce that we have developed and patented the possibility to extend the concept of dual-technology also to existing and already running indigo rope dyeing machines, the most commonly used, giving them a new future.

This technology upgrading on existing dyeing ranges requires a limited investment and can be realized on site in a simply way and with short machine down time. Basically, it consists of completing a number of dyeing boxes — we suggest up to 50 percent — with special devices and components allowing, from one side, to continue to work in the traditional way and, on the other one, using the nitrogen atmosphere.

In this way, it is possible to continue producing classic running qualities, but also to introduce new exclusive developments with better quality, less cost and ecologically sustainable.

In fact, thanks to this upgrading, existing machines will be able to continue to run usual indigo dyeing processes, but with the possibility to add bottoming or topping (or both of them) using nitrogen technology, as well as to dye pure sulfur colors without the need of a steamer achieving the highest quality levels, better fastness and brightness.

Using this advanced nitrogen technology, in case of sulphur colors, especially in case of black, a higher dye stuff use efficiency can be achieved, and it can be estimated, at a visual check, approximately +40% compared with traditional dyeing technology.

Moreover, the same upgrading allows to dye indigo in an ecological way, with a reduced number of boxes, using only one fifth of dye bath, saving up to 70% of hydrosulphite and caustic soda. The process can be designed both with low and high indigo concentration and temperature. In any case, thanks to the better indigo fixation, the result will bring also to a higher dye stuff use efficiency, better fastness and a saving of water in washing boxes with consequent reduction of production costs.

Thanks to nitrogen technology, indigo in the dye bath is totally and perfectly reduced up to a nanometric level and, in this condition, the resulting color fixation is much better and stronger compared with traditional system operating in air. This is the reason why, in this way, it is possible to achieve a better dye stuff use efficiency, a better fastness, intensity and brightness.

All what above explains why this innovative dyeing system is the only one that we can call “ecologic” as it brings to a reduction of dyeing bath volume, number of dips and oxidators, all conditions necessary for a drastic reduction of polluting chemicals, power and water consumption, being this last one of the most critical topics nowadays (see IndigoNews n. 2)

Concerning ecology issues, among the most urgent worldwide, many consumers protection organization are asking for an international law, to be introduced as soon as possible, to impose the reduction of chemicals consumptions and the respect of regulations to protect health and the environment.

Further, it is important to underline that this new dyeing system allows, in any case, to play with all those typical parameters – physical, chemical, mechanical and technical – of dyeing processes to achieve the desired final results.

Unfortunately, over nearly twenty years after its invention, dyeing with nitrogen technology has not spread as expected due to a few reasons, the first one, the lack of technical knowledge and the underestimation of the enormous advantages they were offering by the potential utilizers.

In fact, many producers, although sensitive to ecology, have believed that they could achieve the desired eco-targets by simply applying some devices to their machines, such as ultrasound, etc., which are, actually, only palliatives capable to bring limited improvements, but nothing that can allow the reduction of dangerous and polluting chemicals.

Today, even if this new modern, experimented and suitable nitrogen technology is available, analyzing actual denim production, it comes out very clearly that, despite everyone making of ecological issues their banner, the majority, or rather almost all, of the denims on the market, are still dyed with the old classic method in open air, that is to say, anti-ecological.

Unfortunately, this situation persists even if many brands are asking for a more sustainable and ecologic denim and despite the fact that the new fabrics that can be obtained with the nitrogen technology may offer designers the possibility to offer new and innovative garments.

All together, it is evident that this anomalous situation can not be supported for long in the globalized environment we are living.
 Denim producers have to face the imperative ecological and moral obligation to change their production mentality, to innovate/update their classic dyeing machinery to reduce the consumption of chemicals, water and power and to adopt everything necessary to offer ecological and sustainable products, achieving, by the way, cost reduction advantages.

Summarizing, the updating of existing rope dyeing machines for the use of the dual- technology, will assure the possibility to operate as shown in the attached drawing no.12825, that is to say:

  • Indigo dyeing as per traditional method, in air, using all the available boxes at full level with low dye bath concentration. These dyeing processes can be completed, with bottoming, topping, sandwich sulphur colors dyed with nitrogen technology, for never-before achieved results.
  • Indigo dyeing – new ecological system with high dye stuff use efficiency – using nitrogen technology, half of the dye boxes, low dye bath level (one sixth of the total volume) and higher dye stuff concentration, achieving:
    • 50 to 70% reduction of caustic soda and hydrosulphite
    • 30% reduction of power consumption
    • Reduction of total production costs
    • Higher dye bath circulation rate (thanks to its reduced volume) with the result of 
a better exchange dye bath-fibre and, thus, better general dyeing results 
-  Possibility to develop new, original and exclusive articles, not achievable on 
traditional machines
    • Sulphur dyeing processes with high dye stuff utilization efficiency, better 
fixation, no need of steamer and better brightness compared with those on traditional dyeing machines operating in air. 
To be noted that there is absolutely no nitrogen consumption during the dyeing process, except for the initial filling.

The upgrading above described is the bright, smart and economic solution to give life to the eco-sustainable denim for the future.

MASTER is integrating tradition with flexibility, economy and sustainability.

Posted: December 18, 2023

Source: MASTER S.R.L.

Teijin Frontier Announces Development Of Microft™ MX, A New Material For Sports And Outdoor Wear That Evenly Combines The Texture And Functionality Of Polyester And Nylon

Microft MX

TOKYO — December 18, 2023 — Teijin Frontier Co. Ltd., the Teijin Group’s fibers and products converting company, today announced the development of Microft™ MX, a next-generation, high-quality, high-performance material. This product is made from highly-deformed cross-section multifilament yarn*, which is a uniform mixture of single filaments of polyester and nylon, using a unique spinning technology, as the optimal woven or knitted structure. The evenly mixed polyester and nylon filaments produce deep colors.

Microft MX has the appearance of a finely woven chambray due to difference in dyeing effect of both materials.

Cross section of yarn

The raw yarn has a gently V-shaped highly-deformed cross-section, which provides bulkiness and a spun-like, soft texture. Uniformly mixing polyester and nylon on the surface and in the structure of the woven fabric produces a combination of desirable features from both materials, such as the abrasion resistance and color development capabilities of nylon, and the water absorption, quick-drying properties and shape stability of polyester.

In recent years, fashions that combine the practicality of sports and outdoor apparel with lifestyle have been expanding in popularity. There is a growing need for fabrics with superior functionality, plus new looks and textures, that differ from conventional products.

Polyester and nylon are often used in sports and outdoor clothing. Advances in product development are being made to take advantage of polyester’s stretch properties, dimensional stability, water absorption and quick-drying properties, and nylon’s abrasion resistance and vivid colors. However, no progress has been made in developing materials that combine the texture and functionality of polyester and nylon.

Teijin Frontier will begin promoting Microft MX fabric for the 2025 spring and summer outdoor clothing and sportswear collections. Applications will then be expanded to include functional clothing of innerwear and fashion clothing, with the aim of selling 500,000 meters per year by 2026.

*Multifilament yarn: A filament yarn made by pulling together dozens of single yarns (single fibers) into a single yarn.

Posted: December 18, 2023

Source: Teijin Frontier Co., Ltd.

Get Your Yellow Ducks In A Row: Dive Into Colorful Confidence With AATCC’s Chlorine Test Control Fabric

RESEARCH TRIANGLE PARK, N.C.  — December 15, 2023 — AATCC, a not-for-profit association serving textile professionals since 1921, invites industry partners to “get their ducks in a row” with the launch of a new Chlorine Test Control Fabric for use with TM 162 Colorfastness to Water, Chlorinated Pool.

This sunny yellow control fabric, reminiscent of rubber ducks drifting across clear blue pool water, enables testing laboratories to evaluate color change when textiles are exposed to chlorinated swimming pool conditions.

Proper use of the control fabric serves as a quality control check to confirm required testing conditions are met. The cheery yellow control fabric undergoes processing and evaluation alongside a test specimen. By verifying the expected color change on the control, laboratories can ensure compliance to TM 162.

The release of this new tool upholds AATCC’s longstanding commitment to advocate for industry transparency, reproducibility, and continuous improvement. For over 100 years, AATCC has developed definitive standard methods and materials that enable objective evaluation of textile performance. The association encourages professionals to leverage these resources to support product claims, optimize processes, and make informed decisions backed by science-based data.

To purchase the Chlorine Test Control Fabric, visit https://members.aatcc.org/store/chlorine-1/3842/.

Posted: December 15, 2023

Source: AATCC

ISM® Reports Economic Improvement To Continue In 2024  — Expectations For 2024 Are Positive For Apparel, Leather & Allied Products And Textile Mills

TEMPE, Ariz.  — December 15, 2023 — Economic improvement in the United States will continue in 2024, say the nation’s purchasing and supply management executives in the December 2023 Semiannual Economic Forecast. Revenues are expected to increase in 15 of 18 manufacturing industries and 16 of 18 services-sector industries. Capital expenditures are expected to increase by 11.9 percent in the manufacturing sector (after a 14.9-percent increase in 2023) and increase by 2.9 percent in the services sector (after a 4.2-percent increase in 2023). In 2024, employment is expected to grow by 2 percent in manufacturing and 0.8 percent in services. After projected growth in manufacturing and a contraction in services in the first half (H1) of the year, growth in the second half (H2) is projected to accelerate in manufacturing and strongly re-emerge in the services sector.

These projections are part of the forecast issued by the Business Survey Committees of Institute for Supply Management® (ISM®). The forecast was released today by Timothy R. Fiore, CPSM, C.P.M, Chair of the ISM Manufacturing Business Survey Committee, and by Anthony S. Nieves, CPSM, C.P.M., A.P.P, CFPM, Chair of the ISM Services Business Survey Committee.

Manufacturing Summary

Expectations for 2024 are positive, as 58 percent of survey respondents expect revenues to be greater in 2024 than in 2023. The panel of purchasing and supply executives expects a 5.6-percent net increase in overall revenues for 2024, compared to a 0.9-percent increase reported for 2023. Fifteen of the 18 manufacturing industries expect revenue improvement in 2024, listed in order of largest to smallest projected increase: Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; Paper Products; Furniture & Related Products; Primary Metals; Miscellaneous Manufacturing; Transportation Equipment; Chemical Products; Textile Mills; Machinery; Fabricated Metal Products; Plastics & Rubber Products; Nonmetallic Mineral Products; and Petroleum & Coal Products.

“Manufacturing’s purchasing and supply executives expect to see overall growth in 2024. They are optimistic about overall business prospects for the first half of 2024 and more excited about faster growth in the second half. According to the ISM® Report On Business®, manufacturing grew for 28 consecutive months from June 2020 through September 2022, was unchanged in October, but dipped into contraction in November 2022, with the index remaining in contraction until now. Respondents expect raw materials pricing pressure to ease in 2024 and see H1 2024 profit margins improving over H2 2023. Wages and employment will continue to grow. Manufacturers also predict growth in both exports and imports in 2024,” says Fiore.

In the manufacturing sector, respondents report the companies operating at 83 percent of normal capacity, up 1 percentage point from the 82 percent reported in May 2023. Purchasing and supply executives predict that capital expenditures will increase year over year by 11.9 percent in 2024, compared to the 14.9-percent increase reported for 2023 compared to 2022. Manufacturers expect employment in the sector to grow by 2 percent in 2024 relative to December 2023 levels, while labor and benefit costs are expected to increase an average of 5.2 percent. Respondents also expect the U.S. dollar to strengthen against the currencies of seven major trading partners in 2024.

The panel predicts that prices paid for raw materials will increase 3.2 percent during the first five months of the year, with an overall increase of 3.3 percent for 2024. This compares to a reported 4.1 percent increase in raw materials prices in 2023.

Services Summary

Forty-three percent of services supply management executives expect their 2024 revenues to be higher than in 2023. They expect a 6.9 percent net increase in overall revenues for 2024, compared to a 4.2-percent increase reported for 2023. The 16 industries expecting revenue increases in 2024 — listed in order of largest to smallest projected increase — are: Retail Trade; Professional, Scientific & Technical Services; Construction; Transportation & Warehousing; Management of Companies & Support Services; Wholesale Trade; Finance & Insurance; Public Administration; Mining; Accommodation & Food Services; Utilities; Health Care & Social Assistance; Arts, Entertainment & Recreation; Information; Other Services; and Educational Services.

“Services supply executives report operating at 86.5 percent of normal capacity, less than the 91 percent reported in May 2023. They are guarded about the first half of 2024, but expect robust growth in the second half, with a projected increase in capital reinvestment. They forecast that their capacity to produce products and provide services will rise by 4.1 percent during 2024, and capital expenditures will increase by 2.9 percent. Services panel members also predict their overall employment will increase by 0.8 percent during 2024,” says Nieves.

Respondents in services industries expect the prices they pay for materials and services to increase by 3.4 percent during 2024. They also forecast that their overall labor and benefit costs will increase 3.3 percent. Profit margins decreased slightly in the second and third quarters of 2023 but respondents expect growth between now and May 2023.

OPERATING RATE

Manufacturing

Manufacturing purchasing and supply executives report their companies are currently operating at 83 percent of normal capacity. This is a 1-percentage point increase when compared to May 2023 (82 percent) and a decrease when compared to December 2022 (88.4 percent). The following nine industries — listed in order — are operating at or above the average rate of 83 percent: Paper Products; Petroleum & Coal Products; Transportation Equipment; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Computer & Electronic Products; Wood Products; Electrical Equipment, Appliances & Components; and Machinery.

Services

Services supply executives report their organizations are currently operating at 86.5 percent of normal capacity. This is a decrease compared to the 91 percent reported in May 2023 and below what was reported in December 2022 (89.9 percent). The 11 industries operating at or above the average capacity level of 86.5 percent — listed in order — are: Other Services; Finance & Insurance; Educational Services; Arts, Entertainment & Recreation; Utilities; Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Mining; Public Administration; Retail Trade; and Accommodation & Food Services.

 Operating Rate
Manufacturing Services
Dec
2022		 May
2023		 Dec

2023

 Dec
2022		 May
2023		 Dec

2023
90%+ 57 % 41 % 42 % 66 % 69 % 48 %
50%-89% 41 % 55 % 53 % 32 % 30 % 51 %
Below 50% 2 % 4 % 5 % 2 % 1 % 1 %
Est. Overall Average 88.4 % 82.0 % 83.0 % 89.9 % 91.0 % 86.5 %

 

PRODUCTION CAPACITY

Manufacturing

Production capacity in manufacturing increased 0.7 percent in 2023, as 35 percent of purchasing and supply executives reported an average capacity increase of 9.8 percent, 18 percent reported an average decrease of 17.4 percent, and 47 percent reported no change. This compares to a May 2023 predicted increase in production capacity of 0.4 percent for 2023. Expectations for 2024 are for an increase of 7.8 percent. The 14 industries that expect an increase in production capacity in 2024 — listed in order — are: Apparel, Leather & Allied Products; Transportation Equipment; Primary Metals; Plastics & Rubber Products; Machinery; Paper Products; Furniture & Related Products; Miscellaneous Manufacturing; Chemical Products; Computer & Electronic Products; Textile Mills; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; and Nonmetallic Mineral Products.

Manufacturing Production Capacity
Predicted For 2023 Reported For 2023 Predicted For 2024
Predicted

May 2023

 Magnitude
of Change		 Reported
Dec 2023		 Magnitude
of Change		 Predicted

Dec 2023

 Magnitude
of Change
Higher 26 % +12.3 % 35 % +9.8 % 44 % +10.5 %
Same 60 % NA 47 % NA 52 % NA
Lower 14 % -18.7 % 18 % -17.4 % 4 % -22.8 %
Net Average +0.4 % +0.7 % +7.8 %

 

The principal means of achieving increases in production capacity in 2023 were (in order of importance):

1)   Additional personnel
2)   More hours worked with existing personnel
3)   Additional plant and/or equipment
4)   Replaced equipment with technically advanced equipment.

Services

The capacity to produce products or provide services in the services sector increased 3.9 percent during 2023. This is greater than what was predicted in May 2023 (2 percent) and 0.5 percentage point higher than the 3.4 percent predicted for the year in December 2022. For 2024, 47 percent of services supply managers expect increases averaging 9.3 percent, and 3 percent of respondents expect decreases averaging 9.6 percent. Fifty percent expect no change in capacity. The 17 industries expecting increases in capacity in 2024 — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Professional, Scientific & Technical Services; Management of Companies & Support Services; Construction; Wholesale Trade; Health Care & Social Assistance; Retail Trade; Transportation & Warehousing; Finance & Insurance; Public Administration; Accommodation & Food Services; Mining; Real Estate, Rental & Leasing; Information; Arts, Entertainment & Recreation; Utilities; and Educational Services.

Services Production or Provision Capacity
Predicted For 2023 Reported For 2023 Predicted For 2024
Predicted

May 2023

 Magnitude
of Change		 Reported

Dec 2023

 Magnitude
of Change		 Predicted

Dec 2023

 Magnitude
of Change
Higher 17 % +16.4 % 31 % +14.6 % 47 % +9.3 %
Same 78 % NA 64 % NA 50 % NA
Lower 5 % -16.5 % 5 % -12.3 % 3 % -9.6 %
Net Average +2.0 % +3.9 % +4.1 %

 

The principal means of achieving increases in production or provision capacity in 2023 were (in order of importance):

1)   Additional personnel (permanent, temporary or contract)
2)   Additional plant and/or equipment
3)   More hours worked with existing personnel
4)   Replaced equipment with technically advanced equipment.

CAPITAL EXPENDITURES — 2023 vs. 2022

Manufacturing

Purchasing and supply executives report 2023 capital expenditures increased 14.9 percent on average when compared to 2022 levels. Expenditures for 2023 beat survey respondents’ previous expectations, as they predicted an increase of 0.4 percent for the year in May 2023. The 37 percent of purchasers who reported increased capital expenditures in 2023 indicated an average increase of 33.8 percent, while the 18 percent who said their capital spending was reduced reported an average decrease of 25.1 percent. Forty-five percent of respondents said their levels of spend were unchanged in 2023. The 14 industries showing increases in capital expenditures for 2023 — listed in order of percentage increase — are: Printing & Related Support Activities; Nonmetallic Mineral Products; Apparel, Leather & Allied Products; Textile Mills; Transportation Equipment; Computer & Electronic Products; Food, Beverage & Tobacco Products; Paper Products; Furniture & Related Products; Petroleum & Coal Products; Primary Metals; Plastics & Rubber Products; Chemical Products; and Fabricated Metal Products.

Services

Services supply management executives report their level of capital expenditures in 2023 increased 4.2 percent compared to 2022. This is lower than the 6 percent increase reported for 2022 and slightly higher than the 4-percent increase predicted by respondents in May 2023. Thirty-seven percent report increases averaging 19.4 percent, while 14 percent report decreases averaging 21.6 percent. Forty-nine percent indicate they spent the same on capital expenditures in 2023 as in 2022. The 14 industries experiencing increases in capital expenditures in 2023 — listed in order of percentage increase — are: Agriculture, Forestry, Fishing & Hunting; Utilities; Public Administration; Wholesale Trade; Real Estate, Rental & Leasing; Management of Companies & Support Services; Construction; Educational Services; Mining; Professional, Scientific & Technical Services; Transportation & Warehousing; Arts, Entertainment & Recreation; Finance & Insurance; and Retail Trade.

Capital Expenditures 2023 vs. 2022
Manufacturing Services
Predicted
May 2023		 Reported
Dec 2023		 Magnitude
of Change		 Predicted
May 2023		 Reported
Dec 2023		 Magnitude
of Change
Higher 24 % 37 % +33.8 % 40 % 37 % +19.4 %
Same 56 % 45 % NA 45 % 49 % NA
Lower 20 % 18 % -25.1 % 15 % 14 % -21.6 %
Net Average +0.4 % +14.9 % +4.0 % +4.2 %

 

PREDICTED CAPITAL EXPENDITURES — 2024 vs. 2023

Manufacturing

Purchasing and supply executives expect capital expenditures to increase 11.9 percent in 2024. The 35 percent of respondents who predict increased capital expenditures in 2024 indicate an average increase of 33.9 percent, while the 22 percent who said their capital spending would be reduced predict an average decrease of 24.6 percent. The remaining 43 percent said they expect to spend the same in 2024 as in 2023. The nine industries predicting increases in capital expenditures for 2024 — in the following order — are: Furniture & Related Products; Petroleum & Coal Products; Textile Mills; Machinery; Primary Metals; Fabricated Metal Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; and Miscellaneous Manufacturing.

Services

Services purchasing and supply executives are expecting an increase of 2.9 percent in capital expenditures in 2024, less than the 4.2 percent increase reported for 2023. The 40 percent of respondents expecting to spend more on capital expenditures predict an average increase of 15.5 percent. An additional 22 percent anticipate a decrease averaging 15.6 percent. Thirty-eight percent expect to spend the same on capital expenditures in 2024. The 14 industries expecting increases in capital expenditures in 2024 — listed in order of percentage increase — are: Utilities; Retail Trade; Accommodation & Food Services; Educational Services; Public Administration; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Professional, Scientific & Technical Services; Mining; Arts, Entertainment & Recreation; Health Care & Social Assistance; Construction; Transportation & Warehousing; and Wholesale Trade.

Predicted Capital Expenditures 2024 vs. 2023
Manufacturing Services
Predicted

Dec 2023

 Magnitude

of Change

 Predicted

Dec 2023

 Magnitude

of Change
Higher 35 % +33.9 % 40 % +15.5 %
Same 43 % NA 38 % NA
Lower 22 % -24.6 % 22 % -15.6 %
Net Average +11.9 % +2.9 %

 

PRICES — Changes Between End of 2022 and End of 2023

Manufacturing

After an earlier forecast in May 2023 of a 1-percent increase in prices paid for raw materials in 2023, survey respondents report price increases averaging 4.1 percent for the year. The 55 percent who say their prices are higher now than at the end of 2022 report an average increase of 10 percent, while the 25 percent who report lower prices indicate an average decrease of a 9 percent. The remaining 20 percent report no change in 2023. The nine industries experiencing price increases above the average of 4.1 percent in 2023 — listed in order — are: Printing & Related Support Activities; Plastics & Rubber Products; Petroleum & Coal Products; Primary Metals; Nonmetallic Mineral Products; Transportation Equipment; Miscellaneous Manufacturing; Computer & Electronic Products; and Machinery.

Manufacturing Price Changes Between End of 2022 and End of 2023
Predicted
Dec 2022		 Magnitude

of Change

 Predicted
May 2023		 Magnitude
of Change		 Reported

Dec 2023

 Magnitude

of Change
Higher 50 % +10.7 % 40 % +7.5 % 55 % +10.0 %
Same 23 % NA 36 % NA 20 % NA
Lower 27 % -12.1 % 24 % -8.2 % 25 % -9.0 %
Net Average +2.0 % +1.0 % +4.1 %

 

Services
In 2023, services supply executives report, prices paid increased by 5.7 percent. This is more than the 4.3-percent increase they predicted in May 2023, but less than the 8.4-percent increase for 2023 predicted one year ago. Sixty-six percent of respondents report price increases averaging 9.5 percent. Thirteen percent indicate decreased prices, with an average reduction of 5.3 percent, and 21 percent of respondents did not experience price changes this year. The six industries experiencing price increases above the average of 5.7 percent in 2023 — listed in order — are: Professional, Scientific & Technical Services; Utilities; Public Administration; Health Care & Social Assistance; Educational Services; and Management of Companies & Support Services.

Services Price Changes Between End of 2022 and End of 2023
Predicted
Dec 2022		 Magnitude

of Change

 Predicted
May 2023		 Magnitude
of Change		 Reported

Dec 2023

 Magnitude

of Change
Higher 73 % +12.4 % 54 % +9.3 % 66 % +9.5 %
Same 16 % NA 35 % NA 21 % NA
Lower 11 % -6.6 % 11 % -6.0 % 13 % -5.3 %
Net Average +8.4 % +4.3 % +5.7 %

 

PRICES – Predicted Changes Between End of 2023 and May 2024

Manufacturing

Forty-nine percent of purchasing and supply executives expect the prices they pay to increase in the first five months of 2024 by an average of 7.2 percent, while 22 percent anticipate decreases averaging 6 percent. Including the 29 percent who expect no change in prices, respondents expect a net average overall price increase of 3.2 percent before the end of May. The eight industries predicting a higher than 3.2 percent average increase in prices paid in the first five months of 2024 — listed in order — are: Textile Mills; Nonmetallic Mineral Products; Printing & Related Support Activities; Petroleum & Coal Products; Computer & Electronic Products; Primary Metals; Fabricated Metal Products; and Transportation Equipment.

Services

Services survey respondents predict purchases in the first five months of 2024 will cost an average of 3.7 percent more than at the end of 2023. This is less than the increase reported for calendar year 2023. Sixty-one percent of services respondents predict the prices they pay will increase an average of 7 percent before the end of May, 12 percent of respondents expect price decreases averaging 5 percent, and the remaining 27 percent predict no change in prices. The eight industries predicting price increases of at least 3.7 percent on average in the first five months of 2024 — listed in order of percentage increase — are: Health Care & Social Assistance; Agriculture, Forestry, Fishing & Hunting; Public Administration; Utilities; Professional, Scientific & Technical Services; Accommodation & Food Services; Arts, Entertainment & Recreation; and Management of Companies & Support Services.

Prices – Predicted Changes Between End of 2023 and May 2024
Manufacturing Services
Predicted

Dec 2023

 Magnitude
of Change		 Predicted

Dec 2023

 Magnitude

of Change
Higher 49 % +7.2 % 61 % +7.0 %
Same 29 % NA 27 % NA
Lower 22 % -6.0 % 12 % -5.0 %
Net Average +3.2 % +3.7 %

 

PRICES — Predicted Changes Between End of 2023 and End of 2024

Manufacturing

Respondents predict a net average increase in prices paid of 3.3 percent between December 2023 and December 2024. Fifty-two percent of respondents expect an average price increase of 7.1 percent in 2024, while 24 percent expect an average reduction of 5.2 percent. The remaining 24 percent expect no change in their average prices paid for the year. The five industries expecting price increases above the predicted average of 3.3 percent by the end of 2024 are: Textile Mills; Printing & Related Support Activities; Computer & Electronic Products; Nonmetallic Mineral Products; and Primary Metals.

Services

For all of 2024, services supply management executives expect their prices to increase an average of 3.4 percent. Fifty-nine percent of respondents expect increases averaging 6.9 percent, 14 percent anticipate prices to drop an average of 4.8 percent, and 27 percent foresee no change in prices next year. The nine industries expecting greater than the 3.4-percent average price increase by the end of 2024 — listed in order of percentage increase — are: Health Care & Social Assistance; Utilities; Management of Companies & Support Services; Accommodation & Food Services; Professional, Scientific & Technical Services; Public Administration; Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; and Wholesale Trade.

Predicted Price Changes Between End of 2023 and End of 2024
Manufacturing Services
Predicted

Dec 2023

 Magnitude

of Change

 Predicted

Dec 2023

 Magnitude

of Change
Higher 52 % +7.1 % 59 % +6.9 %
Same 24 % NA 27 % NA
Lower 24 % -5.2 % 14 % -4.8 %
Net Average +3.3 % +3.4 %

 

LABOR AND BENEFIT COSTS — Predicted Rate Change End of 2023 vs. End of 2024

Manufacturing

Purchasing and supply executives expect higher overall labor and benefit costs for 2024. Seventy percent of respondents expect labor and benefit costs to grow by an average of 5.9 percent for all of 2024, while the 2 percent forecasting lower costs see them decreasing by an average of 13.2 percent. Including the 28 percent of respondents who believe costs will remain the same, the overall net rate of increase is expected to be 5.2 percent for the year. The three industries expecting to pay an increase of 5.2 percent or greater are: Plastics & Rubber Products; Transportation Equipment; and Primary Metals.

Services

Services purchasing and supply executives expect a 3.3-percent increase in labor and benefit costs in 2024. Sixty-five percent of respondents expect such costs to increase by an average of 5.5 percent. Another 3 percent of respondents expect labor and benefit costs to shrink by an average of 8.3 percent, and 32 percent believe costs will remain stable during 2024. The eight industries expecting to pay an increase of 3.3 percent or higher — listed in order of percentage increase — are: Professional, Scientific & Technical Services; Educational Services; Retail Trade; Wholesale Trade; Utilities; Other Services; Health Care & Social Assistance; and Agriculture, Forestry, Fishing & Hunting.

  Labor and Benefit Costs — Predicted Rate Change End of 2023 vs. End of 2024
Manufacturing Services
Predicted for
2023Dec 2022		 Predicted for
2024Dec 2023		 Magnitude

of Change

 Predicted for
2023Dec 2022		 Predicted for
2024Dec 2023		 Magnitude

of Change
Higher 76 % 70 % +5.9 % 66 % 65 % +5.5 %
Same 21 % 28 % NA 23 % 32 % NA
Lower 3 % 2 % -13.2 % 11 % 3 % -8.3 %
Net Average +5.8 % +5.2 % +3.5 % +3.3 %

 

EMPLOYMENT — Change in Overall Employment

Manufacturing

ISM’s Manufacturing Business Survey Committee members report that sector employment decreased 0.6 percent in 2023 and forecast that employment will increase by 2 percent, on average, for the full year of 2024. Thirty-three percent of respondents expect employment to be, on average, 6.7 percent higher in 2024, while 17 percent predict employment to be lower by an average of 7 percent. The remaining 50 percent of respondents expect their employment levels to be unchanged in 2024. The 12 industries predicting increases in employment in 2024 — listed in order — are: Nonmetallic Mineral Products; Paper Products; Textile Mills; Computer & Electronic Products; Food, Beverage & Tobacco Products; Machinery; Transportation Equipment; Petroleum & Coal Products; Chemical Products; Electrical Equipment, Appliances & Components; Primary Metals; and Miscellaneous Manufacturing.

Manufacturing Change in Overall Employment
Reported
for 2023
(since May)Dec 2023		 Magnitude

of Change

 Reported

for 2023
(since Dec
2022)

 Magnitude

of Change

 Predicted for
2024Dec 2023		 Magnitude

of Change
Higher 24 % +7.3 % 32 % +8.9 % 33 % +6.7 %
Same 52 % NA 39 % NA 50 % NA
Lower 24 % -11.5 % 29 % -11.0 % 17 % -7.0 %
Net Average -2.2 % -0.6 % +2.0 %

 

Services

ISM’s Services Business Survey Committee members report that sector employment has increased 0.3 percent since May 2023 and increased 1.9 percent for all of 2023. They forecast that employment will increase 0.8 percent by the end of 2024. In the coming year, 29 percent of respondents expect higher levels of employment (up 7.3 percent on average), 16 percent anticipate lower levels (down 7.8 percent on average), and 55 percent expect their employment levels to be unchanged. The nine industries anticipating increases in employment in 2024 — listed in order — are: Professional, Scientific & Technical Services; Accommodation & Food Services; Retail Trade; Agriculture, Forestry, Fishing & Hunting; Utilities; Other Services; Arts, Entertainment & Recreation; Health Care & Social Assistance; and Wholesale Trade.

Services Change in Overall Employment
Reported
for 2023
(since May)Dec 2023		 Magnitude

of Change

 Reported

for 2023
(since Dec
2022)

 Magnitude

of Change

 Predicted for
2024Dec 2023		 Magnitude

of Change
Higher 36 % +5.3 % 40 % +8.4 % 29 % +7.3 %
Same 48 % NA 41 % NA 55 % NA
Lower 16 % -10.2 % 19 % -8.1 % 16 % -7.8 %
Net Average +0.3 % +1.9 % +0.8 %

 

EXPORT BUSINESS — Predicted Change for Next Half Year (First Half of 2024)

Manufacturing

Survey responses indicate executives expect increases in new export orders for the first half of 2024. Of the 61 percent of respondents who reported export activity, 42 percent predict an increase (40 percent moderate and 2 percent substantial) over the next six months. Nine percent of respondents predict a decrease (9 percent moderate and 0 percent substantial) in their exports, and 49 percent anticipate no change in exports over the next six months. The 14 industries expecting growth in exports during the first half of 2024 — listed in order — are: Nonmetallic Mineral Products; Petroleum & Coal Products; Paper Products; Furniture & Related Products; Plastics & Rubber Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Fabricated Metal Products; Transportation Equipment; Machinery; Chemical Products; Primary Metals; Computer & Electronic Products; and Electrical Equipment, Appliances & Components.

Services

For the first half of 2024, respondents whose organizations provide services outside the U.S. are optimistic concerning business. Of the 18 percent of Services Business Survey Committee respondents who report that they export, 22 percent predict an increase (22 percent moderate and 0 percent substantial) over the next six months. Two percent of respondents expect a decrease in their exports (2 percent moderate and 0 percent substantial), and 60 percent anticipate no change in exports over the next six months. Of the industries that export, the seven that expect growth in the first half of 2024 — listed in order — are: Retail Trade; Finance & Insurance; Transportation & Warehousing; Health Care & Social Assistance; Wholesale Trade; Information; and Professional, Scientific & Technical Services.

Predicted Change in Export Business — Next Half Year
Manufacturing Services
Predicted
For 2023		 Predicted
For 2024		 Predicted
For 2023		 Predicted
For 2024
First Half
of 2023Predicted
Dec 2022		 First Half
of 2024Predicted
Dec 2023		 First Half
of 2023Predicted
Dec 2022		 First Half
of 2024Predicted
Dec 2023
Substantial Increase 2 % 2 % 0 % 0 %
Moderate Increase 32 % 40 % 37 % 22 %
No Change 52 % 49 % 60 % 76 %
Moderate Decrease 13 % 9 % 2 % 2 %
Substantial Decrease 1 % 0 % 1 % 0 %
Diffusion Index 59.9 % 66.2 % 67.2 % 59.8 %

 

IMPORT BUSINESS — Predicted Change for Next Half Year (First Half of 2024)

Manufacturing

Respondents expect increases in imports in the first half of 2024. Of the 70 percent of purchasers who reported they import materials, 35 percent predict an increase over the next six months (33 percent moderate and 2 percent substantial), while 17 percent predict a decrease (16 percent moderate and 1 percent substantial). The remaining 48 percent of survey respondents expect no change in imports in the first half of 2024. The 15 industries expecting growth in imports — listed in order — are: Apparel, Leather & Allied Products; Printing & Related Support Activities; Textile Mills; Wood Products; Paper Products; Plastics & Rubber Products; Fabricated Metal Products; Nonmetallic Mineral Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Machinery; Chemical Products; Miscellaneous Manufacturing; Computer & Electronic Products; and Transportation Equipment.

Services

Services executives’ expectations for the use of imports for the first half of 2024 have increased compared to their expectations in December 2022 for the first half of 2023. Of the 29 percent of services organizations who reported they import materials and services, 36 percent (33 percent moderate and 3 percent substantial) predict an increase during the first half of 2024. Twelve percent of respondents (12 percent moderate and 0 percent substantial) predict a decrease. The remaining 52 percent expect no change in imports over the next six months. The 10 industries expecting growth in imports — listed in order — are: Accommodation & Food Services; Retail Trade; Construction; Finance & Insurance; Real Estate, Rental & Leasing; Utilities; Management of Companies & Support Services; Transportation & Warehousing; Professional, Scientific & Technical Services; and Wholesale Trade.

Predicted Change in Import Business — Next Half Year
Manufacturing Services
Predicted
For 2023		 Predicted
For 2024		 Predicted
For 2023		 Predicted
For 2024
First Half
of 2023Predicted
Dec 2022		 First Half
of 2024Predicted
Dec 2023		 First Half
of 2023Predicted
Dec 2022		 First Half
of 2024Predicted
Dec 2023
Substantial Increase 4 % 2 % 9 % 3 %
Moderate Increase 25 % 33 % 17 % 33 %
No Change 54 % 48 % 57 % 52 %
Moderate Decrease 15 % 16 % 15 % 12 %
Substantial Decrease 2 % 1 % 2 % 0 %
Diffusion Index 55.5 % 58.9 % 54.7 % 61.7 %

 

INVENTORY-TO-SALES RATIO

Manufacturing

Of the manufacturing panel, 15 percent anticipate increasing their purchased inventory-to-sales ratio during 2024. An additional 24 percent expect their ratio to drop, and 61 percent forecast no change. The diffusion index of 45.4 percent suggests the inventory-to-sales ratio will decrease in 2024.

Services

Eighteen percent anticipate increasing their purchased inventory-to-sales ratio during 2024. An additional 8 percent expect their ratio to drop, and 74 percent forecast no change. The diffusion index of 55 percent suggests the inventory-to-sales ratio will increase in 2024.

Predicted Change in Purchased Inventory-to-Sales Ratio
Manufacturing Services
For 2023

Predicted

Dec 2022

 For 2024

Predicted

Dec 2023

 For 2023

Predicted

Dec 2022

 For 2024

Predicted

Dec 2023
Greater 25 % 15 % 12 % 18 %
Same 55 % 61 % 70 % 74 %
Smaller 20 % 24 % 18 % 8 %
Diffusion Index 52.3 % 45.4 % 46.7 % 55.0 %

 

Note: A diffusion index above 50 percent would indicate an increase in the inventory-to-sales ratio; below 50 percent, a decrease in the ratio.

U.S. DOLLAR — Predicted Strength vs. Major Trading Currencies — in 2024 — Manufacturing Only

Manufacturing

Purchasing and supply executives are expecting the U.S. dollar will generally strengthen in 2024 against all the foreign currencies listed below. The average diffusion index for this forecast is 54.3 percent, a decrease of 9.5 percentage points compared to the December 2022 forecast average of 63.8 percent for 2023.

U.S. Dollar
Will Be:		 Euro Canada
Dollar		 British

Pound

 Japanese

Yen

 Mexican

Peso

 Korean
Won		 Taiwan

New
Dollar
Stronger than 33 % 24 % 32 % 25 % 43 % 24 % 25 %
Same as 39 % 61 % 46 % 52 % 39 % 58 % 55 %
Weaker than 28 % 15 % 22 % 23 % 18 % 18 % 20 %
Diffusion Index 52.7 % 54.6 % 54.6 % 50.9 % 62.1 % 53.3 % 52.2 %

Note: A diffusion index above 50 percent would predict a generally stronger U.S. dollar; below 50 percent, a generally weaker U.S. dollar, with the distance from 50 percent indicative of the predicted strength or weakness.

BUSINESS REVENUES

Business Revenues Comparison — 2023 vs. 2022

Manufacturing

Overall, revenues increased for manufacturers. Forty-one percent of respondents say revenue was better than in 2022, increasing on average 9.9 percent. Twenty-eight percent say their revenues decreased in 2023 by an average of 12.5 percent, and the remaining 31 percent indicate no change. Overall, purchasing and supply executives indicate a net increase of 0.9 percent in business revenues for 2023 over 2022. This is less than the 1.7-percent increase that was forecast in May 2023 for all of 2023 and much less than the 5.5-percent increase predicted in December 2022 for all of 2023. The eight industries reporting increases in revenues in 2023 — listed in order — are: Transportation Equipment; Food, Beverage & Tobacco Products; Furniture & Related Products; Petroleum & Coal Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Machinery; and Nonmetallic Mineral Products.

Manufacturing Business Revenues — 2023 vs. 2022
Predicted

Dec 2022

 % Change Predicted

May 2023

 % Change Reported

Dec 2023

 % Change
Higher 45 % +14.9 % 40 % +11.6 % 41 % +9.9 %
Same 43 % NA 40 % NA 31 % NA
Lower 12 % -10.3 % 20 % -14.6 % 28 % -12.5 %
Net Average +5.5 % +1.7 % +0.9 %

 

Services

Services supply management executives report that business revenues for 2023 increased compared to 2022 by 4.2 percent. This is more than the 2.7-percent increase predicted for the year in May 2023. The 46 percent of respondents reporting better business in 2023 than in 2022 estimate an average revenue increase of 19.4 percent. This contrasts with an average decrease of 21.6 percent reported by the 23 percent of respondents who indicate worse business in 2023. The remaining 31 percent have experienced no change in 2023. The 16 industries reporting increases in revenues in 2023 — in the following order — are: Professional, Scientific & Technical Services; Management of Companies & Support Services; Retail Trade; Accommodation & Food Services; Transportation & Warehousing; Public Administration; Information; Other Services; Arts, Entertainment & Recreation; Mining; Wholesale Trade; Finance & Insurance; Utilities; Agriculture, Forestry, Fishing & Hunting; Educational Services; and Health Care & Social Assistance.

Services Business Revenues — 2023 vs. 2022
Predicted

Dec 2022

 % Change Predicted

May 2023

 % Change Reported

Dec 2023

 % Change
Higher 50 % +8.2 % 38 % +10.2 % 46 % +19.4 %
Same 39 % NA 51 % NA 31 % NA
Lower 11 % -9.4 % 11 % -11.2 % 23 % -21.6 %
Net Average +3.1 % +2.7 % +4.2 %

 

Business Revenues Prediction for 2024

Manufacturing

Manufacturing survey respondents forecast that business revenues for 2024 will be stronger than in 2023. The 58 percent of respondents forecasting better organizational business revenues in 2024 estimate an average increase of 9.2 percent. This contrasts with an average decrease of 10.3 percent forecast by the 13 percent who predict lower business revenues in 2024. Including the 29 percent who see no change in 2024, the forecast for overall net increase in business revenues for 2024 is 5.6 percent. Fifteen of the 18 manufacturing industries expect revenue improvement in 2024, listed in order of largest to smallest projected increase: Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; Paper Products; Furniture & Related Products; Primary Metals; Miscellaneous Manufacturing; Transportation Equipment; Chemical Products; Textile Mills; Machinery; Fabricated Metal Products; Plastics & Rubber Products; Nonmetallic Mineral Products; and Petroleum & Coal Products.

Services

Services survey respondents forecast that business revenues for 2024 will improve by an average of 6.9 percent. This is more than the 4.2-percent increase reported for 2023, and more than the 3.1-percent increase predicted one year ago for 2023 revenues. The 43 percent of respondents forecasting better business in 2024 estimate an average revenue increase of 17.2 percent. This contrasts with an average decrease of 9.2 percent forecast by the 5 percent who predict worse business in 2024. The remaining 52 percent see no change. The 16 industries expecting revenue increases in 2024 — listed in order of largest to smallest projected increase — are: Retail Trade; Professional, Scientific & Technical Services; Construction; Transportation & Warehousing; Management of Companies & Support Services; Wholesale Trade; Finance & Insurance; Public Administration; Mining; Accommodation & Food Services; Utilities; Health Care & Social Assistance; Arts, Entertainment & Recreation; Information; Other Services; and Educational Services.

Business Revenues — 2024 vs. 2023
Manufacturing Services
Predicted

Dec 2023

 % Change Predicted

Dec 2023

 % Change
Higher 58 % +9.2 % 43 % +17.2 %
Same 29 % NA 52 % NA
Lower 13 % -10.3 % 5 % -9.2 %
Net Average +5.6 % +6.9 %

 

PROFIT MARGINS

Manufacturing

Survey respondents report that profit margins increased on average during the second and third quarters of 2023. Thirty-six percent of respondents’ companies experienced an increase, 26 percent had lower margins, and 38 percent reported no change. Expectations are higher between now and May 2023, as 32 percent of respondents forecast better profit margins, 17 percent predict lower profit margins, and 51 percent predict no change. The 12 industries expecting an increase in profit margins through May 2024 — listed in order of percentage increase — are: Apparel, Leather & Allied Products; Textile Mills; Computer & Electronic Products; Furniture & Related Products; Paper Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Transportation Equipment; Electrical Equipment, Appliances & Components; Primary Metals; Chemical Products; and Machinery.

Services

Among services supply management executives, 21 percent indicated their organizations experienced an increase in profit margins during the second and third quarters of 2023, 21 percent found smaller profit margins, and 58 percent had no change in margins during that timeframe. From now through May 2024, 28 percent of supply managers expect improved profit margins, 17 percent expect lower profit margins, and the remaining 55 percent of respondents anticipate no change. The 10 industries expecting an increase in profit margins through May 2024 are, in the following order: Mining; Retail Trade; Management of Companies & Support Services; Arts, Entertainment & Recreation; Transportation & Warehousing; Professional, Scientific & Technical Services; Finance & Insurance; Information; Wholesale Trade; and Health Care & Social Assistance.

Profit Margins
Manufacturing Services
May 2023 through
Dec 2023Reported Dec 2023		 Dec 2023 through
May 2024Predicted Dec 2023		 May 2023 through
Dec 2023Reported Dec 2023		 Dec 2023 through
May 2024Predicted Dec 2023
Better 36 % 32 % 21 % 28 %
Same 38 % 51 % 58 % 55 %
Worse 26 % 17 % 21 % 17 %
Diffusion Index 55.2 % 57.4 % 49.9 % 55.1 %

 

BUSINESS COMPARISON

The First Half of 2024 Compared with the Last Half of 2023

Manufacturing

Manufacturing survey respondents are optimistic about the next six months, as reflected in the diffusion index reading of 54.9 percent. Comparing their outlook for the first half of 2024 to the last half of 2023, 31 percent predict it will be better, 20 percent predict it will be worse, and 49 percent expect no change. The 11 industries expecting improvement in the first half of 2024 — listed in order — are: Apparel, Leather & Allied Products; Paper Products; Primary Metals; Miscellaneous Manufacturing; Petroleum & Coal Products; Chemical Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; Plastics & Rubber Products; Computer & Electronic Products; and Transportation Equipment.

Services

The initial half of 2024 is predicted to be slightly worse than the latter half of 2023, according to services purchasing and supply executives. The diffusion index indicating current expectations registered 49 percent. Twenty-eight percent of respondents expect the first half of next year to be better than the last half of 2023. Thirty percent (an increase of 13 percentage points) anticipate it will be worse, and 42 percent predict no change. The 10 industries expecting improvement in the first half of 2024 — listed in order — are: Transportation & Warehousing; Accommodation & Food Services; Agriculture, Forestry, Fishing & Hunting; Professional, Scientific & Technical Services; Wholesale Trade; Health Care & Social Assistance; Arts, Entertainment & Recreation; Management of Companies & Support Services; Utilities; and Retail Trade.

Business — First Half 2024 vs. Last Half 2023
Manufacturing Services
Predicted

Dec 2023

 Predicted

Dec 2023
Better 31 % 28 %
Same 49 % 42 %
Worse 20 % 30 %
Diffusion Index 54.9 % 49.0 %

Note: A diffusion index above 50 percent would generally indicate an expectation of the first half of the coming year being better than the second half of the current year.

The Second Half of 2024 Compared with the First Half of 2024

Manufacturing

Purchasing and supply executives in manufacturing are even more optimistic about the second half of 2024 compared to the first half. The share of survey respondents who forecast the second half of 2024 to be better than the first half is 40 percent, while 13 percent expect it to be worse, and 47 percent expect no change. The diffusion index figure for the second half of 2024 is 63.9 percent, compared to 49 percent for the first half of 2024. The 14 industries predicting improvement in the second half of 2024 — listed in order — are: Apparel, Leather & Allied Products; Furniture & Related Products; Textile Mills; Wood Products; Primary Metals; Plastics & Rubber Products; Chemical Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Fabricated Metal Products; Paper Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; and Transportation Equipment.

Services

Services purchasing and supply executives feel more optimistic about the second half of 2024 as compared to the first half of the year. (The diffusion index reading for the second half is 65.5 percent; it is 49 percent for the first half.) The share of respondents who currently forecast the second half of 2024 to be better than the first half is 45 percent, while 14 percent expect it to be worse. An additional 41 percent of purchasers expect no change. The 12 industries expecting improvement in the second half of 2024 — listed in order — are: Real Estate, Rental & Leasing; Transportation & Warehousing; Retail Trade; Management of Companies & Support Services; Information; Professional, Scientific & Technical Services; Wholesale Trade; Health Care & Social Assistance; Mining; Agriculture, Forestry, Fishing & Hunting; Utilities; and Educational Services.

Business — Second Half 2024 vs. First Half 2024
Manufacturing Services
Predicted

Dec 2023

 Predicted

Dec 2023
Better 40 % 45 %
Same 47 % 41 %
Worse 13 % 14 %
Diffusion Index 63.9 % 65.5 %

Note: A diffusion index above 50 percent would generally indicate an expectation of the second half of the coming year being better than the first half.

OUTLOOK FOR THE NEXT 12 MONTHS

Manufacturing

Compared to the outlook for 2023 reported in December 2022, survey respondents this year are more optimistic about the outlook for 2024. Thirty-four percent of respondents believe 2024 will be better than 2023. Forty-six percent of respondents believe 2024 will be the same as 2023, and 20 percent believe 2024 will be worse than 2023. The resulting diffusion index for the 2024 outlook is 56.5 percent, compared with 50 percent for 2023 from one year ago.

Services

Services survey respondents are overall slightly less optimistic compared to their predictions for 2023. A marginally larger proportion of respondents this year believe 2024 will be better than 2023. This is offset by an increase in the proportion of respondents indicating that 2024 will be worse. The diffusion index for the 2024 outlook of 55.3 percent is lower than the diffusion index going into 2023 (55.6 percent).

Outlook — Next 12 Months
Manufacturing Services
Predicted
for 2023
Dec 2022		 Predicted
for 2024
Dec 2023		 Predicted
for 2023
Dec 2022		 Predicted
for 2024
Dec 2023
Better 27 % 34 % 31 % 33 %
Same 46 % 46 % 50 % 44 %
Worse 27 % 20 % 19 % 23 %
Diffusion Index 50.0 % 56.5 % 55.6 % 55.3 %

 

SPECIAL QUESTION TOPIC #1: HIRING WORKERS TO FILL OPEN POSITIONS

We asked the panel, “In the past six months, has your firm had difficulty hiring workers to fill open positions?”

Respondents indicated:

Hiring Workers to Fill Open Positions
Manufacturing Services
Reported
Dec
2019		 Reported
Dec
2021		 Reported
Dec
2022		 Reported
Dec
2023		 Reported
Dec
2019		 Reported
Dec
2021		 Reported
Dec
2022		 Reported
Dec
2023
We have had difficulty hiring 70 % 81 % 77 % 59 % 70 % 81 % 84 % 75 %
We have not had difficulty 23 % 12 % 22 % 37 % 23 % 13 % 10 % 21 %
Not applicable (we have not had any open positions) 7 % 7 % 1 % 4 % 7 % 6 % 6 % 4 %

 

SPECIAL QUESTION TOPIC #2: HIRING DIFFICULTIES

We asked the panel, “If ‘yes,’ what have you done to deal with these difficulties?”

Respondents indicated:

If “Yes,” What Have You Done?
Manufacturing Services
Reported
Dec
2019		 Reported
Dec
2021		 Reported
Dec
2022		 Reported
Dec
2023		 Reported
Dec
2019		 Reported
Dec
2021		 Reported
Dec
2022		 Reported
Dec
2023
We raised wages to recruit new hires 40 % 43 % 45 % 51 % 30 % 44 % 51 % 43 %
We didn’t hire as many as we would have liked 31 % 35 % 34 % 22 % 39 % 43 % 32 % 43 %
We lowered our hiring standards 11 % 6 % 10 % 10 % 9 % 3 % 7 % 6 %
No difficulty because we weren’t looking for workers — 12 % 3 % 6 % — 0 % 0 % 0 %
Something else 18 % 4 % 8 % 11 % 22 % 10 % 10 % 8 %

 

SPECIAL QUESTION TOPIC #3: NO HIRING DIFFICULTIES

We asked the panel, “If you have not had difficulty hiring, why not?”

Respondents indicated:

If “No,” Why not?
Manufacturing Services
Reported
Dec
2019		 Reported
Dec
2021		 Reported
Dec
2022		 Reported
Dec
2023		 Reported
Dec
2019		 Reported
Dec
2021		 Reported
Dec
2022		 Reported
Dec
2023
We raised wages to attract applicants 30 % 31 % 27 % 40 % 19 % 31 % 45 % 36 %
Local labor market had ample supply of applicants 27 % 20 % 17 % 23 % 23 % 17 % 5 % 23 %
We lowered our hiring standards 4 % 3 % 9 % 4 % 5 % 25 % 13 % 6 %
No difficulty because we weren’t trying to hire 13 % 25 % 16 % 21 % 15 % 10 % 17 % 19 %
Something else 26 % 21 % 31 % 12 % 38 % 17 % 20 % 16 %

 

SPECIAL QUESTION TOPIC #4: ABILITY TO PASS PRICING INCREASES

We asked the panel, “Are you able to pass price increases to customers?”

Respondents indicated:

Pass Price Increases to Customers?
Manufacturing Services
Reported
Dec 2021		 Reported
Dec 2022		 Reported
Dec 2023		 Reported
Dec 2021		 Reported
Dec 2022		 Reported
Dec 2023
Yes 64 % 72 % 69 % 43 % 48 % 64 %
No 36 % 28 % 31 % 57 % 52 % 36 %

 

SPECIAL QUESTION TOPIC #5: CAUSE OF SUPPLY CHAIN DISRUPTIONS

We asked the panel, “Are most of the supply chain disruptions in the manufacturing/services sectors due to foreign developments (for example, microchips or other foreign-sourced supplies) or to domestic developments (such as port delays, lack of truck drivers or domestically-produced supplies like steel or aluminum)?”

Respondents indicated:

Cause of Supply Chain Disruptions
Manufacturing Services
Reported
Dec
2021		 Reported
Dec
2022		 Reported
Dec
2023		 Reported
Dec
2021		 Reported
Dec
2022		 Reported
Dec
2023
Foreign-Sourced 40 % 56 % 51 % 44 % 49 % 64 %
Domestic-Sourced 60 % 44 % 49 % 56 % 51 % 36 %

 

SPECIAL QUESTION TOPIC #6: LEVEL OF BACK ORDERS SUPPORTING PRODUCTION

We asked the panel, “How do you see your current level of back orders as supporting your production presently and over the new few months?”

Respondents indicated:

Back Orders Supporting Production?
Manufacturing Services
Reported
Dec 2022		 Reported
Dec 2023		 Reported
Dec 2022		 Reported
Dec 2023
The level of back orders should not impact production. 53 % 43 % 56 % 62 %
The level of back orders should have a small boost in production. 26 % 27 % 25 % 18 %
The level of back orders should have a large boost in production. 9 % 5 % 4 % 5 %
Declining back orders should be a drag on production. 12 % 25 % 15 % 15 %

 

SPECIAL QUESTION TOPIC #7: RESHORING FROM CHINA

We asked the panel, “In the past six months, has your organization been impacted by reshoring production from China?”

Respondents indicated:

Reshoring From China Impact?
Manufacturing Services
Reported
Dec 2022		 Reported
Dec 2023		 Reported
Dec 2022		 Reported
Dec 2023
Yes, we are actively substituting domestic for production imports. 42 % 28 % 26 % 23 %
No, we are not reshoring from China. 40 % 48 % 49 % 62 %
No, we are shifting non-domestic, non-China supply chains. 18 % 24 % 25 % 15 %

 

SPECIAL QUESTION TOPIC #8: INCREASING INVENTORIES

Manufacturing

We asked the panel, “Do you plan on increasing your inventory of semi-finished and finished goods over the first half of 2024?”

Our inventory is in line with expected demand (53%)

Our inventory is insufficient to meet expected demand (15%)

Our inventory currently exceeds expected demand (30%)

Other (2%)

Services
We asked the panel, “Do you plan on increasing your inventory of semi-finished and finished goods over the first half of 2024?”

Our inventory is in line with expected demand (43%)

Our inventory is insufficient to meet expected demand (20%)

Our inventory currently exceeds expected demand (12%)

Other (25%)

SPECIAL QUESTION TOPIC #9: RETURN TO PRE-PANDEMIC NORMS

Manufacturing

We asked the panel, “When do you anticipate supply chain conditions to be essentially back to pre-pandemic norms?”

They are already back to normal (31%)

By next spring (13%)

By the end of next summer (10%)

By the end of 2024 (22%)

Never (24%)

Services

We asked the panel, “When do you anticipate supply chain conditions to be essentially back to pre-pandemic norms?”

They are already back to normal (22%)

By next spring (14%)

By the end of next summer (6%)

By the end of 2024 (30%)

Never (28%)

SUMMARY

Manufacturing

The manufacturing sector contracted in November for a 13th consecutive month, and the forecast indicates this trend may reverse in the first half of 2024 with continued strengthening in the second half.

  • Operating rate is currently at 83 percent.
  • Production capacity increased by 0.7 percent in 2023.
  • Production capacity is expected to increase by 7.8 percent in 2024.
  • Capital expenditures increased 14.9 percent in 2023.
  • Capital expenditures are expected to increase 11.9 percent in 2024.
  • Prices paid increased 4.1 percent in 2023.
  • Overall, 2024 prices paid are expected to increase 3.3 percent.
  • Labor and benefit costs are expected to increase 5.2 percent in 2024.
  • Manufacturing employment is predicted to increase 2 percent in 2024.
  • U.S. exports growth expected in 2024.
  • U.S. imports growth expected in 2024.
  • The U.S. dollar is expected to strengthen versus the currencies of seven major trading partners in 2024.
  • Manufacturing revenues increased 0.9 percent in 2023.
  • Manufacturing revenues are expected to increase 5.6 percent in 2024.
  • Manufacturing supply managers have a positive outlook, with 34 percent of respondents predicting 2024 will be better than 2023, and 20 percent of respondents predicting 2024 will be worse than 2023.

Services

The services sector grew for the 11th month in a row in November, and the forecast indicates continued expansion in 2024.

  • Operating rate is currently at 86.5 percent.
  • Production capacity increased 3.9 percent in 2023.
  • Production and provision capacity is expected to increase 4.1 percent in 2024.
  • Capital expenditures increased 4.2 percent in 2023.
  • Capital expenditures are expected to increase 2.9 percent in 2024.
  • Prices paid increased 5.7 percent in 2023.
  • Prices paid are expected to increase 3.4 percent in 2024.
  • Labor and benefit costs are expected to increase 3.3 percent in 2024.
  • Employment is expected to increase 0.8 percent in 2024.
  • Export levels expected to increase in 2024.
  • Import growth expected in 2024.
  • Services revenues are up 4.2 percent in 2023.
  • Services revenues are expected to rise 6.9 percent in 2024.
  • Services supply managers are positive in their outlook, with 33 percent of respondents predicting 2024 will improve compared to 2023.

*Miscellaneous Manufacturing includes items such as medical equipment and supplies, jewelry, sporting goods, toys and office supplies.

**Other Services include services such as equipment and machinery repairing; promoting or administering religious activities; grant making; advocacy; and providing dry-cleaning and laundry services, personal care services, death care services, pet care services, photofinishing services, temporary parking services, and dating services.

Posted: December 15, 2023

Source: Institute for Supply Management

HanesBrands Appoints William S. Simon Chairman Of The Board Of Directors

WINSTON-SALEM, N.C. — December 15, 2023 — HanesBrands today announced that its board of directors has appointed William S. Simon to serve as chairman of the board, effective December 31, 2023. His appointment follows Ronald L. Nelson’s decision to retire as chairman and a member of the board at the end of the year.

Simon has been a director at the company since 2021 and has previously served on the Talent and Compensation Committee and the Governance and Nominating Committee. He is executive advisor to the KKR & Co. investment firm and president of WSS Venture Holdings LLC, a consulting and investment company, after having served as president and CEO of Walmart U.S., and brings extensive senior leadership skills and deep experience as a public company director at other consumer-facing companies.

Cheryl K. Beebe and Ann E. Ziegler will also retire as members of the board on December 31, 2023. These changes follow the appointment of three new independent directors, Colin Browne, Natasha Chand and John Mehas, last month and align with the company’s previously announced intent to return the board to 10 members.

Steve Bratspies, CEO and director, said: “HanesBrands has been fortunate to benefit from the strategic leadership, operational expertise and financial acumen that Ron, Cheryl and Ann each brought to the Board. They have made significant contributions to the Company throughout their years of service. They served as valuable partners to me and our leadership team as we have developed and executed a strategy to capitalize on HanesBrands’ growth opportunities, simplify our global business and best position our brands for success in an evolving consumer environment. I look forward to working with Bill in his new role as Chairman as we accelerate and continue to advance our strategic initiatives.”

Simon, incoming chairman of the board, said: “On behalf of the board, I thank Ron for his years of leadership and Cheryl and Ann for their dedication to HanesBrands. I appreciate the Board’s confidence in me, and I look forward to working with my fellow directors and the management team in my new role as chairman. As we move ahead with fresh perspectives gained from our recently appointed new directors, the Board continues to be intensely focused on delivering enhanced shareholder value. We are collectively committed to supporting management as the team executes on opportunities to drive improved growth and profitability.”

Nelson, chairman of the board, said: “It has been an honor to serve as a director and the chairman of the HanesBrands Board. Over the course of my 15 years on the Board, the company has remained true to its core principle of making apparel known and loved by consumers around the world for comfort, quality and value while growing and evolving with the industry. Looking forward, I am confident that Bill, Steve and the full team will continue to leverage the strength of the company’s brands and enhanced operations to deliver further growth and value for all shareholders and stakeholders.”

Posted: December 15, 2023

Source: HanesBrands

Coloreel Appoints Lucia Eklöf As VP Customer Success

Lucia Eklöf

STOCKHOLM, Sweden — December 15, 2023 — Coloreel has appointed Lucia Eklöf as vice president of Customer Success to lead international expansion. Eklöf joins the company with a strong sales background and an in-depth understanding of international textile business dynamics.

Prior to her role at Coloreel, Eklöf managed key accounts at Coats, a global leader in thread manufacturing, where she was responsible for a large portfolio of prominent Scandinavian apparel and footwear brands and their global operations.

“We are excited to welcome Lucia Eklöf to our team,” said Torbjörn Bäck, CEO at Coloreel. “Her experience in sales management and her deep-rooted understanding of industry trends will help our customers grow. Lucia’s expertise in thread, understanding of operations for brands and producers, and commitment to sustainable practices will contribute to building our global presence.”

Eklöf’s appointment will strengthen Coloreel’s strategy of delivering collaborative partnerships and create value. She will work closely with Coloreel’s distributors, customers, and certified digitizers to help them maximize the benefits of Coloreel’s unique solutions.

“My passion for sustainability, coupled with my ability to foster strong customer relationships in the thread and textile industry, will be a good match with Coloreel’s extensive growth plans,” Eklöf said.

Posted: December 15, 2023

Source: Coloreel

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