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

ACIMIT: The Italian Textile Machinery Industry On Display At Colombiatex 2024

MILAN, Italy — December 15, 2023 — At the upcoming edition of Colombiatex, that will take place in Medellin January 23-25, 2024, the leading Italian manufacturers of textile machinery will be present in the common area organized by Italian Trade Agency and ACIMIT, the Association of Italian Textile Machinery Manufacturers.

There will be 23 companies exhibiting in the Italian pavilion. Among these, ACIMIT members companies are: BTSR, Color Service, Danti, Fadis, Flainox, Isotex, Itema, Kairos Engineering, LGL, Lonati, MCS, Monti-Mac, Nexia, Orox, Ratti, Reggiani Macchine, Salvadè, Santoni, SRS, Stalam, Tecnorama, Ugolini.

The Colombian textile and clothing industry has experienced significant growth in recent years. Consequently, imports of textile machinery have also increased. In 2023, Colombian imports are expected to reach 58 million euros. For the period 2024-2027, the Country’s import growth is projected to be an average of 2.2 percent annually, according to data compiled by ACIMIT.

Italy has long been a technological partner for Colombian textile companies that have invested in the modernization of the production process. Italian exports to Colombia in 2022 exceeded 18 million euros — a 50-percent increase from the previous year. In the first six months of 2023, Italian exports to Colombia reached 9 million euros.

“The consistent presence of Italian companies at last editions of Colombiatex,” commented Marco Salvadè, ACIMIT president, “testifies how our sector is a privileged partner in assisting Colombian textiles in their path of qualitative growth.” Salvadè concludes, “ACIMIT is committed to creating opportunities for meetings between Italian manufacturers and Colombian textile companies. We have done this frequently, organizing various business missions in Italy in collaboration with Italian Tarde Agency. The most recent one allowed selected Colombian textile operators to visit the last ITMA Milan.”

Posted: December 15, 2023

Source: ACIMIT – The Association of Italian Textile Machinery Manufacturers

Self-Driven And Sustainable Removal Of Spills In Water Using Textiles

Figure 1: Adsorption of a drop of waste oil within seconds by a leaf of the floating fern Salvinia molesta.

TW Special Report

Researchers at the ITA, the University of Bonn and Heimbach GmbH have developed a new method for removing oil spills from water surfaces in an energy-saving, cost-effective way and without the use of toxic substances. The method is made possible by a technical textile that is integrated into a floating container. A single small device can remove up to 4 liters of diesel within an hour. This corresponds to about 100 square meters of oil film on a water surface.

Despite the steady expansion of renewable energies, global oil production, oil consumption and the risk of oil pollution have increased steadily over the last two decades. In 2022, global oil production amounted to 4.4 billion tons! Accidents often occur during the extraction, transportation and use of oil, resulting in serious and sometimes irreversible environmental pollution and harm to humans.

There are various methods for removing this oil pollution from water surfaces. However, all methods have various shortcomings that make them difficult to use and, in particular, limit the removal of oil from inland waters.

For many technical applications, unexpected solutions come from the field of biology. Millions of years of evolution led to optimized surfaces of living organisms for their interaction with the environment. Solutions – often rather unfamiliar to materials scientists and difficult to accept. The long-time routine examination of around 20,000 different species showed that there is an almost infinite variety of structures and functionalities. Some species in particular stand out for their excellent oil adsorption properties. It was shown that, e.g., leaves of the floating fern Salvinia molesta, adsorb oil, separate it from water surfaces and transport it on their surfaces (Figure 1 as well as the video below).

The observations inspired them to transfer the effect to technical textiles for separating oil and water. The result is a superhydrophobic spacer fabric that can be produced industrially and is therefore easily scalable.

The bio-inspired textile can be integrated into a device for oil-water separation. This entire device is called a Bionic Oil Adsorber (BOA). Figure 2, a Cross-section of computer-aided (CAD) model of the Bionic Oil Adsorber, shows an oil film (red) on a water surface (light blue). In the floating container (gray), the textile (orange) is fixed so that it is in contact with the oil film and the end protrudes into the container. The oil is adsorbed and transported by the BOA textile. As shown in the cross-section, it enters the container, where it is released again and accumulates at the bottom of the container.

Figure 2: Cross-section of computer-aided (CAD) model of the Bionic Oil Adsorber

Starting from the contamination in the form of an oil film on the water surface, the separation and collection process works according to the following steps:

  • The BOA is introduced into the oil film.
  • The oil is adsorbed by the textile and separated from the water at the same time.
  • The oil is transported through the textile into the collection container.
  • The oil drips from the textile into the collection container.
  • The oil is collected until the container is emptied.

The advantage of this novel oil separation device is that no additional energy has to be applied to operate the BOA. The oil is separated from the surrounding water by the surface properties of the textile and transported through the textile driven solely by capillary forces, even against gravity. When it reaches the end of the textile in the collection container, the oil desorbs without any further external influence due to gravitational forces. With the current scale approximately 4 L of diesel can be separated from water by one device of the Bionic Oil Adsorber per hour.

It seems unlikely that a functionalized knitted spacer textile is cheaper than a conventional nonwoven, like it is commonly used for oil sorbents. However, since it is a functional material, the costs must be related to the amount of oil removed. In this respect, if we compare the sales price of the BOA textile with the sales prices of various oil-binding nonwovens, the former is 5 to 13 times cheaper with 10 ct/L oil removed.

Overall, the BOA device offers a cost-effective and sustainable method of oil-water separation in contrast to conventional cleaning methods due to the following advantages:

  • No additional energy requirements, such as with oil skimmers, are necessary
  • No toxic substances are introduced into the water body, such as with oil dispersants
  • The textiles and equipment can be reused multiple times
  • No waste remains inside the water body
  • Inexpensive in terms of the amount of oil removed.

The team of researchers from the ITA, the University of Bonn and Heimbach GmbH was able to prove that the novel biomimetic BOA technology is surprisingly efficient and sustainable for a self-controlled separation and automatic collection of oil films including their complete removal from the water. BOA can be asapted for open water application but also for the use in inland waters. Furthermore, it is promising, that the textile can be used in various related separation processes. The product is currently being further developed so that it can be launched on the market in two to three years.

Publication: Beek, L.; Barthlott,W.; Mail, M.; Klopp, K.; Gries, T. Self-Driven Sustainable Oil Separation from Water Surfaces by Biomimetic Adsorbing and Transporting Materials. Separations 2023, 10, 592. https://doi. org/10.3390/separations10120592

December 14, 2023

Lignin Coating Makes Geotextiles Made From Environmentally Friendly Natural Fibers Durable

Coating process of a cellulose-based nonwoven with the lignin compound using thermoplastic processing methods on a continuous coating line. Photograph: DITF

TW Special Report

Textiles are a given in civil engineering: they stabilize water protection dams, prevent runoff containing pollutants from landfills, facilitate the revegetation of slopes at risk of erosion, and even make asphalt layers of roads thinner. Until now, textiles made of highly resistant synthetic fibers have been used for this purpose, which have a very long lifetime. For some applications, however, it would not only be sufficient but even desirable for the auxiliary textile to degrade in the soil when it has done its job. Environmentally friendly natural fibers, on the other hand, often decompose too quickly. The German Institutes of Textile and Fiber Research Denkendorf (DITF) are developing a bio-based protective coating that extends their service life.

Nonwoven fabric based on cellulose, coated with the lignin compound as a protective layer against degradation in the soil. Photograph: DITF

Depending on humidity and temperature, natural fiber materials can degrade in the soil in a matter of months or even a few days. In order to significantly extend the degradation time and make them suitable for geotextiles, the Denkendorf team researches a protective coating. This coating, based on lignin, is itself biodegradable and does not generate microplastics in the soil. Lignin is indeed biodegradable, but this degradation takes a very long time in nature.

Together with cellulose, Lignin forms the building materials for wood and is the “glue” in wood that holds this composite material together. In paper production, usually only the cellulose is used, so lignin is produced in large quantities as a waste material. So-called kraft lignin remains as a fusible material. Textile production can deal well with thermoplastic materials. All in all, this is a good prerequisite for taking a closer look at lignin as a protective coating for geotextiles.

Cotton yarns: with lignin coating as a protective layer against degradation in soil and reference material without coating. Photo: DITF

Brittle Material

Lignin is brittle by nature. Therefore, it is necessary to blend the kraft lignin with softer biomaterials. These new biopolymer compounds of brittle kraft lignin and softer biopolymers were applied to yarns and textile surfaces in the research project via adapted coating systems. For this purpose, for example, cotton yarns were coated with lignin at different application rates and evaluated. Biodegradation testing was carried out using soil burial tests both in a climatic chamber with temperature and humidity defined precisely according to the standard and outdoors under real environmental conditions. With positive results: the service life of textiles made of natural fibers can be extended by many factors with a lignin coating: The thicker the protective coating, the longer the protection lasts. In the outdoor tests, the lignin coating was still completely intact even after about 160 days of burial.

Textile materials coated with lignin enable sustainable applications. For example, they have an adjustable and sufficiently long service life for certain geotextile applications. In addition, they are still biodegradable and can replace previously used synthetic materials in some applications, such as revegetation of trench and stream banks.

Cross-section of a cotton yarn coated with lignin by extrusion process. Photo: DITF

Reduced Carbon Footprint

Thus, lignin-coated textiles have the potential to significantly reduce the carbon footprint: They reduce dependence on petroleum-based products and avoid the formation of microplastics in the soil.

Further research is needed to establish lignin, which was previously a waste material, as a new valuable material in industrial manufacturing processes in the textile industry.

The research work was supported by the Baden-Württemberg Ministry of Food, Rural Areas and Consumer Protection as part of the Baden-Württemberg State Strategy for a Sustainable Bioeconomy.

December 14, 2023

Study Tests Firefighter Turnout Gear With, Without PFAS

Researchers expose firefighter turnout gear to heat in equipment similar to a pizza oven. Photo courtesy of Bryan Ormond, NC State University.

By Mick Kulikowski

Transitioning away from per- and polyfluoroalkyl substances (PFAS), which offer water- and oil-repelling properties on the outer shells of firefighter turnout gear, could bring potential performance tradeoffs, according to a new study from North Carolina State University.

The study showed that turnout gear without PFAS outer shell coatings were not oil-repellent, posing a potential flammability hazard to firefighters if exposed to oil and flame, said Bryan Ormond, assistant professor of textile engineering, chemistry and science at NC State and corresponding author of a paper describing the research.

“All oil repellents can also repel water, but all water repellents don’t necessarily repel oil,” Ormond said. “Diesel fuel is really difficult to repel, as is hydraulic fluid; in our testing, PFAS-treated materials repel both. In our tests, turnout gear without PFAS repelled water but not oil or hydraulic fluid.

“Further, oils seem to spread out even more on the PFAS-free gear, potentially increasing the hazard.”

PFAS chemicals — known as forever chemicals because of their environmental persistence — are used in food packaging, cookware and cosmetics, among other uses, but have recently been implicated in higher risks of cancer, higher cholesterol levels and compromised immune systems in humans. In response, firefighters have sought alternative chemical compounds — like the hydrocarbon wax coating used in the study — on turnout gear to repel water and oils.

Besides testing the oil- and water-repelling properties of PFAS-treated and PFAS-free outer garments, the NC State researchers also compared how the outer shells aged in job-related exposures like weathering, high heat and repeated laundering, and whether the garments remained durable and withstood tears and rips.

The study showed that PFAS-treated and PFAS-free outer shells performed similarly after exposure to UV rays and various levels of heat and moisture, as well as passes through heating equipment — similar to a pizza oven — and through washing machines.

“Laundering the gear is actually very damaging to turnout gear because of the washing machine’s agitation and cleaning agents used,” Ormond said.

“We also performed chemical analyses to see what’s happening during the weathering process,” said Nur Mazumder, an NC State doctoral student in fiber and polymer science and lead author of the paper. “Are we losing the PFAS chemistries, the PFAS-free chemistries or both when we age the garments? It turns out that we lost significant amounts of both of these finishes after the aging tests.”

Both types of garments performed similarly when tested for strength against tearing the outer shell fabric. The researchers say the PFAS and PFAS-free coatings didn’t seem to affect this attribute.

Ormond said that future work will explore how much oil repellency is needed by firefighters out in the field.

“Even with PFAS treatment, you see a difference between a splash of fluid and soaked-in fluid,” Ormond said. “For all of its benefits, PFAS-treated gear, when soaked, is dangerous to firefighters. So we need to really ask ‘What do firefighters need?’ If you’re not experiencing this need for oil repellency, there’s no worry about switching to non-PFAS gear. But firefighters need to know the non-PFAS gear will absorb oil, regardless of what those oils are.”

Andrew Hall, another NC State doctoral student in fiber and polymer science and co-author on the paper, is also testing dermal absorption, or taking the aged outer shell materials and placing them on a skin surrogate for a day or two. Are outer shell chemicals absorbed in the skin surrogate after these admittedly extreme exposure durations?

“Firefighting as a job is classified as a carcinogen but it shouldn’t have to be,” Ormond said. “How do we make better gear for them? How do we come up with better finishes and strategies for them?

“These aren’t just fabrics,” Ormond said. “They are highly engineered pieces of material that aren’t easily replaced.”

The paper appears in the Journal of Industrial Textiles. Funding for the research came from the Federal Emergency Management Agency’s Assistance to Firefighters Grants Program.

Editor’s Note: Mick Kulikowski is director of Strategic Communications and Media Relations at NC State University, Raleigh, N.C.

December 14, 2023

Thomas Jefferson University Names Said Ibrahim, MD, MBA, MPH The Anthony F. And Gertrude M. Depalma Dean Of Sidney Kimmel Medical College

PHILADELPHIA — December 14, 2023 — On December 1, Jefferson welcomed newly appointed Anthony F. and Gertrude M. DePalma Dean of Thomas Jefferson University’s esteemed Sidney Kimmel Medical College and president of Jefferson University Physicians (JUP), Said Ibrahim, MD, MBA, MPH. Dr. Ibrahim is an internal medicine physician who has served as a primary care doctor, educator, administrator, and clinician investigator, brings a wealth of higher education, research and healthcare experience to this crucial leadership role, and is nationally recognized for his efforts to combat health disparities.

Said Ibrahim, MD, MBA, MPH

“Dr. Ibrahim has demonstrated a strong commitment to fostering innovation, collaboration and inclusivity within the medical community,” said Susan Aldridge, PhD, Interim President of Thomas Jefferson University. “He brings not only a deep understanding of the evolving landscape of medical education but also a vision for furthering our medical school’s reputation as a hub for academic excellence, cutting-edge research, compassionate patient care, and diversity and inclusion.”

As Dean, Dr. Ibrahim will build upon the existing collaborative, transdisciplinary, and vibrant culture to further position the Sidney Kimmel Medical College and Jefferson Health as a premier academic healthcare institution in Philadelphia and beyond.

“My vision prioritizes strong partnerships between clinical leadership and the academic programs, mentoring and leadership development, strengthening research capacity, training future generations of physicians, and promoting inclusion and belonging among trainees, students, faculty and staff,” said Dr. Ibrahim. “I will work closely with Jefferson leaders on community engagement to address today’s urgent health challenges locally and nationally.”

Dr. Ibrahim joined Thomas Jefferson University from Northwell Health where he served as senior vice president of Northwell Health’s Medicine Service Line. In that role, he was also chair of the Department of Medicine at Long Island Jewish Medical Center, North Shore University Hospital in Manhasset and the Donald & Barbara Zucker School of Medicine at Hofstra/Northwell.

Previously, Dr. Ibrahim was professor of Population Health Sciences and the founding chief of the Division of Healthcare Delivery Science and Innovation at the Department of Population Health Sciences for Weill Cornell Medicine. He was also Weill Cornell’s inaugural senior associate dean for Diversity and Inclusion.

Prior to his role at Weill Cornell Medicine he served as Chief of Medicine at the Philadelphia VA Medical Center and Vice-Chair of Medicine at the Perelman School of Medicine at the University of Pennsylvania.

“We are thrilled to welcome Dr. Ibrahim back home to Philadelphia,” said Jefferson Chief Executive Officer, Joseph G. Cacchione, MD. “He will have an impact on medical education and healthcare now and in the future as we educate the next generation of physicians to provide competent, compassionate and world-class care to the communities they will serve in Philadelphia and across the world.”

Dr. Ibrahim received his Bachelor’s degree from Oberlin College and his Medical degree from Case Western Reserve University School of Medicine. He also holds a Master’s degree in Public Health from Harvard University’s School of Public Health and a Master’s degree in Business Administration from the MIT Sloan School of Management. Dr. Ibrahim completed his internship and residency training in internal medicine at Brigham and Women’s Hospital, a teaching hospital of Harvard Medical School.

In his over twenty years of providing care to Veterans, Dr. Ibrahim learned the importance of access to care, especially access to cutting-edge treatments such as knee and hip replacement surgery.  For more than 25 years, the National Institutes of Health (NIH) funded Dr. Ibrahim’s research has focused on variations in access to needed treatments among patients with knee/hip osteoarthrosis. As the director of the Philadelphia VA National Center of Innovation for Health Equity Research and Promotion (CHERP), Dr. Ibrahim mentored many students and young faculty to pursue research that advances health equity in different healthcare dimensions and diagnoses.

In recognition of his seminal research on health equity, Dr. Ibrahim was this year inducted into the National Academy of Medicine, which is considered one the highest honors in the fields of health and medicine.

Posted: December 14, 2023

Source: Thomas Jefferson University

John Smedley: Shima Seiki’s SDS-ONE APEX4 & APEXFiz Design Software For Improved Work Process

SDS-ONE APEX series design system is used for efficient development of the world’s finest knitwear.

TW Special Report

John Smedley Ltd. is the oldest continuously operating knitwear manufacturer in the world, producing fine gauge knitwear from its Lea Mills, Derbyshire factory since 1784. Crafted from the finest noble fibers of extra-fine merino wool, John Smedley’s Sea Island cotton and other luxury blends, the company is known as creators of the “World’s Finest Knitwear” that is designed to last, made in England and distributed the world over. Its menswear and womenswear ranges are available worldwide via its stand-alone retail stores in the St James’s, Mayfair and Marylebone districts of London; and the Tokyo, Yokohama and Kyoto areas of Japan. Exports are made to more than 47 countries worldwide via international wholesale partners such as Mr. Porter, Selfridges, Harrods, Harvey Nichols, Isetan, Bergdorf Goodman and Le Bon Marche.

Brilliant History Of Achievement

John Smedley holds two Royal Warrants for ‘the manufacturer of fine knitwear” from Her Majesty The Queen & His Royal Highness The Prince of Wales. In Her Majesty The Queen’s Birthday Honors List 2020, Ian Maclean, managing director of John Smedley Ltd. and eighth-generation family member, was awarded an MBE for services to the UK textile industry and the COVID-19 response. John Smedley collaborated with The Emergency Design Network to design and manufacture medical grade scrub garments which were distributed to more than 30 different hospitals, GP surgeries and care homes in the London and Derbyshire areas.

John Smedley has one of the largest knitted garment archives in the world and has counted the likes of Marilyn Monroe, Audrey Hepburn, The Beatles, Sean Connery, Kate Winslet, Robert DeNiro, Ed Skrein, Eva Longoria and more amongst its celebrity fans. Over the years, John Smedley has supported and collaborated with many leading designers to champion British manufacturing including Vivienne Westwood, Paul Smith, Lou Dalton, Sacai, Fragment, Comme Des Garcons and Holly Fulton.

Digital Encounter

By implementing Japan-based SHIMA SEIKI’s SDS-ONE APEX4 design systems and APEXFiz Design software, the company has been able to shorten lead time for development and prototyping as well as to reduce sampling costs, and is now able to spend more time for creativity.

Shima Seiki spoke with Design Director Pip Jenkins about the company’s development process. “We are using SDS-ONE APEX series for both swatch developments and product prototyping,” Jenkins explained. “Before using SDS-ONE APEX series, multiple stitch and pattern developments were done on the production machines before prototyping and every colorway swatch was knit down for the wholesale presenters, which could pan over one month from programming and knitting to washing. From a cost standpoint, there were also a lot of problems with high waste in re-knitting prototypes and swatch development, the need for using high-priced yarns, the need for using programmers to realize designers’ ideas, and the need to use knitting machines for high volume development which prevented them from being used for bulk production.

“After seeing the knit simulations, we decided to stop knitting real swatches for the wholesale side of our business and start producing them digitally using SDS-ONE APEX series. We could also bridge the gap between designer and programmer, meaning product pattern development was correct the first time around. In addition we could develop ideas and check colorways without having to knit anything. Development is now done on the SDS-ONE APEX series, after which we go straight in to prototyping and in most cases we are right the first time. All colorways are now digitally simulated within a few days for our wholesale presenters. This change contributes to reduced waste and lead times, less yarn used during development, fewer programmers, and increased development efficiency due to less use of knitting machines.”

Figure 1

Clear Results

Using SDS-ONE APEX4 and APEXFiz Design software has greatly improved John Smedley’s work process (see Figure 1).

“With virtual samples we are able to see the development of our ideas without having to use a machine for production,” Jenkins added. “And our programmers feel it is clearer what they need to develop, and our designers feel their ideas have been translated correctly. SDS-ONE APEX not only helps our company to go digital, but it also allows for shorter development times, less waste of high value yarn, less time spent on production machines during the prototype, swatch, and colorway developments, as well as more time to exercise our creativity.”

December 14, 2023

Sustainable Home Décor: Embrace Upcycling And Create Stylish “New” Fabrics With Digital Prints

On-Demand digital decoration is key to transforming the fabrics of of lives.

By Omer Kulka

If you’re a textile supplier or decorator, you may think of your old, disfavored fabric stocks as a burden — a sunk cost, something that will inevitably by discarded, a missed opportunity to invest in or create something that would’ve sold. In a market where transforming what was once old into something new and exciting is now in fashion, however, it’s more productive not to consider those out-of-fashion textiles a burden, but rather something to be cherished — something akin to your “special blankie.”

It’s all right to talk about your “lucky” blanket, the one you’ve been holding onto since childhood. Really. More than a few of us have one, even if we don’t talk about it because we think it sounds childish or silly. Embrace it.

It’s probably seen better days. It’s faded, frayed, worn, torn … lived in. But it’s special to you, and you don’t want to let go of it. It’s reliable. It feels like home.

The brands and designers who create home furnishings understand this sentiment. When textile decorators make curtains, rugs, blankets, or furniture upholstery, they’re not simply fulfilling a demand; they’re creating the contours of a buyer’s everyday life. They’re bringing color to an environment that’s to feel like home, because it is home.

Into this home décor market comes the trend of “upcycling,” by which yesterday’s tired objects and materials — like that cherished blanket — are reused or repurposed in a way that revitalizes them, giving them greater value than ever before. Long a staple of Indian living, it would seem the concept has caught the eye of decorators and producers globally.

As the call for reducing waste and improving the sustainability of textiles grows louder – and increasingly enforced by regulatory action — creators turn to upcycling as a key strategy for meeting this demand, directing out-of-favor materials towards innovative new uses instead of landfills. Among many examples to catch my eye, a recent profile on SustainableJungle.com cited Goodee as a marketplace for home décor that prioritizes upcycling as a key component of the ethical and sustainable practices it promotes, holding its brand partners accountable to responsible sourcing and production measures.

Coming from a technology provider that’s committed to making home textiles both more expressive and more eco-conscious, without sacrificing quality or consistency, upcycling speaks to me because it represents flexibility, versatility, adaptability. It means being liberated from the usual supply chains and their unpredictable challenges and uncertainties, and being able to create something of value from what’s readily available — taking what we already have, and creating trendy colors and patterns with that stock.

The market is flush with digital print technologies that apply gorgeous colors and graphics to a wide range of textiles for home use, spanning natural and synthetic fibers. The latest in sustainable digital print technologies offer a versatile, reliable platform that requires no external pretreatments of materials prior to decorating them. From the start, this means textile decorators would need not concern themselves with sourcing pretreated materials. Whatever’s available, odds are this technology is ready to apply durable, consistent, high-quality impressions to that fabric, without limitations of color or graphic detail. Just load the untreated material onto the feeder, select your graphic image or pattern, and within minutes you have a finished custom impression in any quantity required, ready to ship or cut.

Many of those using these systems today, whether they’re decorating textiles for home décor, do-it-yourself cut-and-sew, fashion and apparel, or otherwise, say a key benefit of this technology is that it’s compatible with natural fibers — unlike dye sublimation, which limits your canvas to white polyester, and produces considerable waste in the process. The streamlined production process yields virtually no water waste, can nest multiple jobs within a single run, and requires less labor, energy, time, and floorspace to deliver imprinted materials that meet the most vigorous industry standards for quality, durability, and sustainability. You’re printing graphic images at the push of a button, so you need only produce what’s been sold — making for a highly profitable operation, positioned to scale or adapt to unforeseen market dynamics.

Quick And Simple

This one-step process also makes sampling quick and simple, so designers can fulfill their needs efficiently, with little time and investment. Try new things. See what works and what doesn’t. While most designers will work with cotton, linen, denim, wool, polyester, or blends, we’ve even seen this technology used to decorate latex and vegan leather. It could probably even apply a photograph of 8-year-old you holding your special blankie, to your special blankie.

In the past year, furniture decorator Cozmo has used on-demand digital print to create custom “jackets” for sofas, giving designers the ability to add new life to traditional home furnishings. Created quickly, sustainably, and on demand, these pieces have been showcased at the London Design Festival and ITMA 2023, the world’s preeminent textiles exhibition.

D-house laboratorio urbano used digital on-demand decoration to bring artist and designer Markus Benesch’s immersive Inspirational Living concept to life at Milano Design Week.

Adding digital print capabilities gives New Jersey-based Dye Into Print the flexibility “to get triple or quadruple the number of substrates we’re able to print on,” often decorating materials provided by their customers in hospitality and home textiles.

Due to the fast, agile nature of digital print-on-demand, this technology is also a natural fit for events-based décor customizations. Tel Aviv-based Cadena uses it to offer their customers a more memorable, personalized experience for wedding receptions, bar mitzvahs, and other special occasions.

The technology has even been used for religious expression, as in this project that saw the glass works of renowned artist Dale Chihuly complemented with digitally decorated fabrics at Hampton Synagogue in Westhampton, N.Y.

3D Effects

Here’s the kicker: This latest generation of digital on-demand textile decoration systems offers a layering effect, an industry first that adds an entirely new dimension to custom creations — quite literally. Using a single pigment-based ink set, these systems empower decorators to emulate 3D, vinyl, threadless embroidery, and other eye-popping graphic effects. This can include neon accents, or even lenticular imagery — images that appear to change when viewed from different angles. One designer, Fasac, used this system to create a simulated lace effect — all of it printed with white inks, including white-on-dark impressions — for its “Go White” collection, presented at Première Vision in Paris early this year.

Imagine you’re a textile decorator with rolls of fabric in inventory that don’t quite align with what’s selling today. Where once that might become a sunk cost, now you can simply create entirely new textures for that material. The concept is not new: People have long been combining wovens — typically coming from Pakistan or India — and nonwovens — typically coming from China — to create entirely new materials, upcycling what is at their disposal.

Whether you’re a fabric manufacturer or a furniture manufacturer, you can now upcycle your old fabric stocks by printing on them and transforming them into “new” fabrics and designs, taking something old and giving your clients an entirely new, trendy, or fashionable option.

Sensing this trend away from more problematic traditional textile practices and towards more sustainable options — such as upcycling — it’s surely no coincidence several of the producers to adopt these systems most recently herald from locations we’ve long associated with inexpensive offshore textile production — China, India, Turkey and Dubai.

Don’t have the materials you want? Simply take what you have and transform it into something designers and consumers will love. Something that will provide a rich and brilliant décor for their homes, offices, events, and other living spaces with the quality and durability to last, no matter what life throws at it. Something like that special blankie.

Editor’s Note: Omer Kulka, is chief innovation officer at Israel-based Kornit Digital.

December 14, 2023

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