RESEARCH TRIANGLE PARK, NC — December 19, 2022 — AATCC Foundation supports students studying in any textile-related field. Now, the AATCC Corporate Scholarship supports full- OR part-time students, including adult learners!

The AATCC Corporate Member Scholarship is a $1,000 scholarship available to AATCC Corporate Member employees and their children. The scholarship recipient also receives a free one-year AATCC student membership! This scholarship is awarded for the Fall semester only.

Undergraduate and graduate students enrolled in an accredited US college or university are eligible for the new scholarship. This includes part-time and community college students! The application is open to all fields of study leading to further contributions in the textile industry.

Selection criteria include:

• Demonstrated involvement or leadership in textile community;
• Intention and potential for future contribution to the textile community;
• Financial need;
• Academic performance. While there is no minimum GPA or standardized test score, these items may be taken into consideration for selecting recipients; and
• Preference to AATCC individual (including student) members.

Applicants can apply for this and 15+ other scholarships with one simple application on the AATCC website. Visit www.aatcc.org/foundation today to apply or to learn how you can support future textile professionals.

Posted: December 19, 2022

Source: AATCC Foundation Inc.

NEW YORK CITY — December 16, 2022 — Texworld Evolution New York City, the largest sourcing event on the East Coast, returns to the Javits Center January 31-February 2, 2023, with a top-notch educational line-up for Textile Talks, Explore the Floor, and the Lenzing Seminar Series.

More than just sourcing, the co-located event serves as a forum for the industry to learn and stay up to date on the latest innovations in textile and state of the trade industry. The winter 2023 program is designed to offer insightful and informative sessions for every role and level of experience across all segments of the industry.

Seminar Topics and Speaker Highlights:

Sustainability, Sourcing, Circularity and More – Textile Talks

Join moderator Andrea Kennedy, VP of Sustainability at Material Exchange, as she leads a discussion on ways brands are shifting to better and more sustainable product supply chains. Joining this discussion are panelists Katina Boutis, Director of Sustainability at Everlane, and Julie Verdugo, Director of Sustainability and Social Impact at Free People and Urban Outfitters, of URBN Inc.

From Linear to Circular – Lenzing Seminar Series

In a commodity industry such as fashion, it is important that the product’s life cycle become more circular to combat negative impact on people and the planet – from the beginning of the supply chain, to the end of its life. However, the way brands and suppliers approach circularity continues to vary widely. How are industry leaders across the supply chain addressing circularity in a way that is accessible and practical for becoming the best industry practices? Moderator, Erica Redd, Business Development Manager at Lenzing Fibers, will lead the discussion on current and future innovations, issues and obstacles surrounding creating a circular supply chain in a global economy, and the need for collaborations and ingenuity for the sake of our planet and people along with panelists Katie O’Hare, Director of Sustainability at J. Crew and Katie Tague, VP Denim Marketing & Sales at Artistic Millners.

Understanding the Next-Gen Materials Revolution – Textile Talks

The Material Innovation Initiative (MII) is a think tank focused on cultivating a global market for environmentally preferable and animal-free materials across the fashion, automotive, and home goods industries. MII’s Chief Partnerships Officer, Elissa Rosen, and Fashion Design Specialist, Thomasine Dolan, will delve into next-gen materials, the state of the industry, and consumer research. They will also discuss what brands should expect working with next-gen material companies.

Technology and Transparency: The Future of a Sustainable Supply Chain – Lenzing Seminar Series

As textile technology improves, the necessity for sustainable solutions remains paramount. New innovations include block-chain technology and digital passport creation, which aim to increase brand transparency. This panel will bring together industry game changers to discuss the intersection of technology, transparency and the increasingly global and complex fashion economy, and what this means for the consumer.

Gauging the 2023 ‘Shoeconomy’: Prospects, Projections & Pitfalls – Textile Talks

Join Gary Raines, Chief Economist for FDRA as he discusses the forces coloring the economic landscape and how this backdrop may impact footwear demand in the new year. From broad economic trends to more granular issues impacting the footwear marketplace, we will examine a range of issues likely to impact the consumer’s appetite for footwear in 2023.

Registration for the winter event is open. The 3-day educational program is complementary and open to all registered attendees. Seating is available on a first-come-first-serve basis.

Full seminar schedule to follow.

For more information on the co-located event or to register, visit us online: www.texworldevolutionnyc.com

Posted: December 16, 2022

Source: Messe Frankfurt North America

ZURICH — December 16, 2022 — As a start-up, ColorDigital GmbH had applied for the ITMF Start-up Award 2022 and was selected to present in one of the two “Start-up Sessions” at the ITMA Annual Conference 2022 in Davos, Switzerland.

ColorDigital — the company behind DMIx® — was founded in 2013 in Cologne, Germany.

DMIx provides a unique and holistic SaaS – an ecosystem combining industrial manufacturing processes and digital product development workflows to an end-to-end solution for brands and suppliers in the textile, fashion, and lifestyle industry.

Based on the DMIx digital twin standard the system enables the exchange of all relevant data for color and material development, 3D virtualization and the real time exchange of product master data between stakeholders and relevant software solutions.

DMIx and its multiple modules enable qualitative efficiency in collaboration between all tier stages of the supply chain leading to highly efficient processes and a sustainable way of working – reducing unnecessary physical sampling while saving time and cost.

Gerd Willschütz, manager director of ColorDigital, said tha: “It is important for start-ups to be in touch with industry players from the entire textile value chain. Being part of an international forum like ITMF helps to meet and connect with industry players from around the globe. Furthermore, it is important to fully understand the needs of the industry. Equally relevant is to have ITMF explain the value of new technologies and to be part of the discussions about industry trends and initiatives.”

“We are delighted that ColorDigital is joining ITMF as a Corporate Member. After having presented their DMIx solution at the ITMF Annual Conference 2022 as one of the recipients of the ITMF Start-up Awards 2022 it is important to stay connected. Becoming a corporate member of the Federation will broaden and deepen the company’s access to the global textile industry. We are convinced that it is mutual beneficial if well established companies and start-ups like ColorDigital come together on ITMF’s platform”, stated Dr. Christian Schindler, director general of ITMF.

Posted: December 15, 2022

Source: The International Textile Manufacturers Federation (ITMF)

TEMPE, Ariz. — December 15, 2022 — Economic improvement in the United States will continue in 2023, say the nation’s purchasing and supply management executives in the December 2022 Semiannual Economic Forecast. Revenues are expected to increase in 15 of 18 manufacturing industries and 14 of 18 services-sector industries. Capital expenditures are expected to increase by 2.6 percent in the manufacturing sector (after a 12-percent increase in 2022) and increase by 2.8 percent in the services sector (after a 6-percent increase in 2022). The manufacturing employment base is expected to grow by 3.9 percent and the services employment base is expected to increase by 1 percent in 2023. Compared to the first half (H1), growth in the second half (H2) of the year is projected to rebound in manufacturing and accelerate in services.

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 2023 are positive, as 45 percent of survey respondents expect revenues to be greater in 2023 than in 2022. The panel of purchasing and supply executives expects a 5.5-percent net increase in overall revenues for 2023, compared to a 9.3-percent increase reported for 2022. Fifteen of the 18 manufacturing industries expect revenue improvement in 2023, listed in order of largest to smallest projected increase: Plastics & Rubber Products; Transportation Equipment; Apparel, Leather & Allied Products; Fabricated Metal Products; Primary Metals; Food, Beverage & Tobacco Products; Printing & Related Support Activities; Furniture & Related Products; Machinery; Chemical Products; Computer & Electronic Products; Miscellaneous Manufacturing; Paper Products; Electrical Equipment, Appliances & Components; and Textile Mills.

“Manufacturing’s purchasing and supply executives expect to see overall growth in 2023. They are pessimistic about overall business prospects for the first half of 2023 but project growth returning in the second half. According to the ISM® Report On Business®, manufacturing grew for 29 consecutive months from June 2020 through October 2022, but dipped into contraction in November after declining in five out of the previous six months. Respondents expect raw materials pricing pressure to increase in 2023, but still see H1 2023 profit margins improving over H2 2022. Wages and employment will continue to grow. Manufacturers also predict growth in both exports and imports in 2023,” says Fiore.

In the manufacturing sector, respondents report operating at 88.4 percent of normal capacity, up 0.8 percentage point from the 87.2 percent reported in May 2022. Purchasing and supply executives predict that capital expenditures will increase year over year by 2.6 percent in 2023, compared to the 12-percent increase reported for 2022 compared to 2021. Manufacturers expect employment in the sector to grow by 3.9 percent in 2023 relative to December 2022 levels, while labor and benefit costs are expected to increase an average of 5.8 percent. Respondents also expect the U.S. dollar to strengthen against the currencies of seven major trading partners in 2023.

The panel predicts that prices paid for raw materials will increase 2.5 percent during the first five months of the year, with an overall increase of 2 percent for 2023. This compares to a reported 11.4 percent increase in raw materials prices between the end of 2021 and 2022.

Services Summary
Half (50 percent) of services supply management executives expect their 2023 revenues to be higher than in 2022. They expect a 3.1-percent net increase in overall revenues for 2023 compared to a 2.1-percent increase reported for 2022. The 14 industries expecting revenue increases in 2023 — listed in order of largest to smallest projected increase — are: Transportation & Warehousing; Mining; Professional, Scientific & Technical Services; Management of Companies & Support Services; Accommodation & Food Services; Real Estate, Rental & Leasing; Retail Trade; Utilities; Construction; Public Administration; Information; Finance & Insurance; Educational Services; and Other Services.

“Services supply executives report operating at 89.9 percent of normal capacity, slightly less than the 91 percent reported in May 2022. They are optimistic about continued growth in the first half of 2023 and expect more growth in the second half, with a projected increase in growth rate for capital reinvestment. They forecast that their capacity to produce products and provide services will rise by 3.4 percent during 2023, and capital expenditures will increase by 2.8 percent. Services panel members also predict their overall employment will increase by 1 percent during 2023,” says Nieves.

Respondents in services industries expect the prices they pay for materials and services to increase by 8.4 percent during 2023. They also forecast that their overall labor and benefit costs will increase 3.5 percent. Profit margin decreases were reported in the second and third quarters of 2022 and respondents expect them to decrease between now and May 2023.

Operating Rate

Manufacturing

Manufacturing purchasing and supply executives report their companies are currently operating at 88.4 percent of normal capacity. This is a 1.2-percentage point increase when compared to May 2022 (87.2 percent) and a decrease when compared to December 2021 (88.7 percent). The following eight industries — listed in order — are operating at or above the average rate of 88.4 percent: Petroleum & Coal Products; Nonmetallic Mineral Products; Paper Products; Computer & Electronic Products; Transportation Equipment; Apparel, Leather & Allied Products; Wood Products; and Miscellaneous Manufacturing.

Services


Services supply executives report their organizations are currently operating at 89.9 percent of normal capacity. This is a decrease compared to the 91 percent reported in May 2022, but above what was reported in December 2021 (89.4 percent). The 12 industries operating at or above the average capacity level of 89.9 percent — listed in order — are: Arts, Entertainment & Recreation; Accommodation & Food Services; Retail Trade; Public Administration; Utilities; Finance & Insurance; Agriculture, Forestry, Fishing & Hunting; Educational Services; Management of Companies & Support Services; Information; Real Estate, Rental & Leasing; and Construction.

Production Capacity

Manufacturing

Production capacity in manufacturing increased 6.7 percent in 2022, as 49 percent of purchasing and supply executives reported an average capacity increase of 15.4 percent, 7 percent reported an average decrease of 12.4 percent, and 44 percent reported no change. This compares to a May 2022 predicted increase in production capacity of 5.8 percent for 2022. Expectations for 2023 are for an increase of 5.3 percent. The 15 industries that expect an increase in production capacity in 2023 — listed in order — are: Plastics & Rubber Products; Apparel, Leather & Allied Products; Transportation Equipment; Food, Beverage & Tobacco Products; Paper Products; Fabricated Metal Products; Primary Metals; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Miscellaneous Manufacturing; Chemical Products; Machinery; Wood Products; Furniture & Related Products; and Textile Mills.

The principal means of achieving increases in production capacity in 2022 were (in order of importance):

1)     Additional personnel

2)     More hours worked with existing personnel

3)     Additional plant and/or equipment

4)     Fewer shutdowns

Services

The capacity to produce products or provide services in the services sector increased 3.9 percent during 2022. This is greater than what was predicted in May 2022 and 0.6 percentage point higher than the 3.3 percent predicted for 2022 in December 2021. For 2023, 37 percent of services supply managers expect increases averaging 9.8 percent, and 2 percent of respondents expect decreases averaging 10.7 percent. Sixty-one percent expect no change in capacity. The 15 industries expecting increases in capacity in 2023 — listed in order — are: Transportation & Warehousing; Management of Companies & Support Services; Public Administration; Accommodation & Food Services; Utilities; Real Estate, Rental & Leasing; Information; Wholesale Trade; Construction; Professional, Scientific & Technical Services; Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Educational Services; Finance & Insurance; and Health Care & Social Assistance.

The principal means of achieving increases in production or provision capacity in 2022 were (in order of importance):

1)     Additional personnel (permanent, temporary or contract)

2)     Additional plant and/or equipment

3)     Replaced equipment with technically advanced equipment

4)     More hours worked with existing personnel

Capital Expenditures — 2022 versus 2021

Manufacturing

Purchasing and supply executives report 2022 capital expenditures increased 12 percent on average when compared to 2021 levels. Expenditures for 2022 beat survey respondents’ previous expectations, as they predicted an increase of 7.4 percent for the year in May 2022. The 45 percent of purchasers who reported increased capital expenditures in 2022 indicated an average increase of 33.9 percent, while the 11 percent who said their capital spending was reduced reported an average decrease of 29.2 percent. Forty-four percent of respondents said their levels of spend were unchanged in 2022. The 12 industries showing increases in capital expenditures for 2022 — listed in order of percentage increase — are: Printing & Related Support Activities; Computer & Electronic Products; Miscellaneous Manufacturing; Plastics & Rubber Products; Nonmetallic Mineral Products; Petroleum & Coal Products; Transportation Equipment; Chemical Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Paper Products; and Food, Beverage & Tobacco Products.

Services


Services supply management executives report their level of capital expenditures in 2022 increased 6 percent compared to 2021. This is much lower than the 15.2-percent increase reported for 2021 and slightly lower than the 6.2-percent increase predicted by respondents in May 2022. Thirty-eight percent report increases averaging 22.4 percent, while 15 percent report decreases averaging 16.1 percent. Forty-seven percent indicate they spent the same on capital expenditures in 2022 as in 2021. The 12 industries experiencing increases in capital expenditures in 2022 — listed in order of percentage increase — are: Mining; Real Estate, Rental & Leasing; Public Administration; Educational Services; Accommodation & Food Services; Information; Transportation & Warehousing; Utilities; Construction; Arts, Entertainment & Recreation; Wholesale Trade; and Professional, Scientific & Technical Services.

Predicted Capital Expenditures — 2023 versus 2022

Manufacturing


Purchasing and supply executives expect capital expenditures to increase 2.6 percent in 2023. The 33 percent of respondents who predict increased capital expenditures in 2023 indicate an average increase of 24.3 percent, while the 19 percent who said their capital spending would be reduced predict an average decrease of 28.3 percent. The remaining 48 percent said they expect to spend the same in 2023 as in 2022. The seven industries predicting increases in capital expenditures, at or above the average increase of 2.8 percent for 2023 — in the following order — are: Paper Products; Transportation Equipment; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Machinery; Primary Metals; and Chemical Products.

Services

Services purchasing and supply executives are expecting an increase of 2.8 percent in capital expenditures in 2023, less than the 6 percent increase reported for 2022. The 38 percent of respondents expecting to spend more on capital expenditures predict an average increase of 15.9 percent. An additional 19 percent anticipate a decrease averaging 17 percent. Forty-three percent expect to spend the same on capital expenditures in 2023. The 11 industries expecting increases in capital expenditures in 2023 — listed in order of percentage increase — are: Accommodation & Food Services; Educational Services; Management of Companies & Support Services; Information; Mining; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Wholesale Trade; Utilities; Public Administration; and Construction.

PRICES — Changes Between End of 2021 and End of 2022

Manufacturing

After an earlier forecast in May 2022 of an 11.1 percent increase in prices paid for raw materials in 2022, survey respondents report price increases averaging 11.4 percent for the year. The 86 percent who say their prices are higher now than at the end of 2021 report an average increase of 14.5 percent, while the 7 percent who report lower prices averaged a 16.4-percent decrease. The remaining 7 percent indicate no change in 2022. The eight industries experiencing price increases above the average of 11.4 percent in 2022 — listed in order — are: Printing & Related Support Activities; Food, Beverage & Tobacco Products; Machinery; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Apparel, Leather & Allied Products; Primary Metals; and Chemical Products.

Services

In 2022, services supply executives report prices paid increased by 11 percent. This is more than the 9.6-percent increase they predicted in May 2022, and also more than the 9.2-percent increase for 2022 predicted one year ago. Eighty-three percent of respondents report price increases averaging 13.7 percent. Four percent indicate decreased prices, with an average reduction of 8.6 percent, and 13 percent of respondents did not experience price changes this year. The nine industries experiencing price increases above the average of 11 percent in 2022 — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Mining; Arts, Entertainment & Recreation; Public Administration; Construction; Utilities; Real Estate, Rental & Leasing; Retail Trade; and Information.

Prices – Predicted Changes Between End of 2022 and May 2023

Manufacturing

Fifty-six percent of purchasing and supply executives expect the prices they pay to increase in early 2023 by an average of 9.1 percent. At the same time, 21 percent anticipate decreases averaging 12.1 percent. Including the 23 percent who expect no change in prices in the first five months of 2023, respondents expect a net average overall price increase of 2.5 percent. The eight industries predicting a higher than 2.5 percent average increase in prices paid in the first part of 2023 — listed in order — are: Printing & Related Support Activities; Computer & Electronic Products; Apparel, Leather & Allied Products; Machinery; Transportation Equipment; Petroleum & Coal Products; Miscellaneous Manufacturing; and Nonmetallic Mineral Products.

Services

Services survey respondents predict purchases in the first five months of 2023 will cost an average of 5.4 percent more than at the end of 2022. This is less than the increase reported for calendar year 2022. Seventy percent of services respondents predict the prices they pay will increase an average of 8.7 percent in the first part of 2023. Eleven percent of respondents expect price decreases averaging 5.7 percent. The remaining 19 percent predict no change in prices in the first five months of 2023. The 10 industries predicting price increases of at least 5.4 percent on average in the first part of 2023 — listed in order of percentage increase — are: Arts, Entertainment & Recreation; Mining; Accommodation & Food Services; Other Services; Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Utilities; Health Care & Social Assistance; Construction; and Public Administration.

Prices — Predicted Changes Between End of 2022 and End of 2023

Manufacturing

Respondents predict a net average increase in prices paid of 2 percent between December 2022 and December 2023. Fifty percent of respondents expect an average price increase of 10.7 percent for the full year of 2023, while 28 percent expect an average reduction of 12.1 percent. The remaining 23 percent expect no change in their average prices paid for the year 2023. The seven industries expecting price increases above the predicted average of 2 percent by the end of 2023 — listed in order — are: Apparel, Leather & Allied Products; Printing & Related Support Activities; Machinery; Computer & Electronic Products; Textile Mills; Miscellaneous Manufacturing; and Petroleum & Coal Products.

Services

For all of 2023, services supply management executives expect their prices to increase an average of 8.4 percent. Seventy-three percent of respondents expect increases averaging 12.4 percent, 11 percent anticipate prices to drop an average of 6.6 percent, and 16 percent foresee no change in prices during the next year. The nine industries expecting greater than the 8.4-percent average price increase by the end of 2023 — listed in order of percentage increase — are: Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; Mining; Agriculture, Forestry, Fishing & Hunting; Construction; Public Administration; Information; Health Care & Social Assistance; and Other Services.

Labor And Benefit Costs — Predicted Rate Change End of 2022 vs. End of 2023

Manufacturing

Purchasing and supply executives expect higher overall labor and benefit costs for 2023. Seventy-six percent of respondents expect labor and benefit costs to grow by an average of 8.5 percent for all of 2023, while the 3 percent forecasting lower costs see them decreasing by an average of 21 percent. Including the 21 percent of respondents who believe costs will remain the same, the overall net rate of increase is expected to be 5.8 percent for the year. The nine industries expecting to pay an increase of 5.8 percent or greater — listed in order of percentage increase — are: Plastics & Rubber Products; Chemical Products; Primary Metals; Apparel, Leather & Allied Products; Printing & Related Support Activities; Wood Products; Nonmetallic Mineral Products; Machinery; and Fabricated Metal Products.

Services

Services purchasing and supply executives expect a 3.5-percent increase in labor and benefit costs in 2023. Sixty-six percent of respondents expect such costs to increase by an average of 6.8 percent. Another 11 percent of respondents expect labor and benefit costs to shrink by an average of 8.9 percent, and 23 percent believe costs will remain stable during 2023. The 13 industries expecting to pay an increase of 3.5 percent or higher — listed in order of percentage increase — are: Accommodation & Food Services; Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Other Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; Mining; Public Administration; Finance & Insurance; Construction; Utilities; Wholesale Trade; and Retail Trade.

Employment — Change in Overall Employment

Manufacturing

ISM’s Manufacturing Business Survey Committee members report that sector employment increased 2.8 percent in 2022 and forecast that employment will increase by 3.9 percent, on average, for the full year of 2023. Forty-two percent of respondents expect employment to be, on average, 12.8 percent higher in 2023, while 9 percent predict employment to be lower by an average of 15.7 percent. The remaining 49 percent of respondents expect their employment levels to be unchanged in 2023. The 13 industries predicting increases in employment in 2023 — listed in order — are: Apparel, Leather & Allied Products; Plastics & Rubber Products; Fabricated Metal Products; Petroleum & Coal Products; Furniture & Related Products; Machinery; Primary Metals; Food, Beverage & Tobacco Products; Paper Products; Miscellaneous Manufacturing; Chemical Products; Transportation Equipment; and Nonmetallic Mineral Products.

Services

ISM’s Services Business Survey Committee members report that sector employment has decreased 2.3 percent since May 2022, but increased 0.2 percent for all of 2022. They forecast that employment will increase 1 percent by the end of 2023. In the coming year, 40 percent of respondents expect higher levels of employment (up 6.9 percent on average), 19 percent anticipate lower levels (down 8.8 percent on average), and 41 percent expect their employment levels to be unchanged. The 14 industries anticipating increases in employment in 2023 — listed in order — are: Transportation & Warehousing; Professional, Scientific & Technical Services; Construction; Mining; Other Services; Accommodation & Food Services; Utilities; Arts, Entertainment & Recreation; Public Administration; Wholesale Trade; Retail Trade; Agriculture, Forestry, Fishing & Hunting; Educational Services; and Information.

Export Business  — Predicted Change for Next Half Year (First Half of 2023)

Manufacturing

Survey responses indicate executives expect increases in new export orders for the first half of 2023. Of the 63 percent of respondents who reported export activity, 34 percent predict an increase (32 percent moderate and 2 percent substantial) over the next six months. Fourteen percent of respondents predict a decrease (13 percent moderate and 1 percent substantial) in their exports, and 52 percent anticipate no change in exports over the next six months. The nine industries expecting growth in exports during the first half of 2023 — listed in order — are: Printing & Related Support Activities; Paper Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Computer & Electronic Products; Transportation Equipment; Chemical Products; Plastics & Rubber Products; and Machinery.

Services

For the first half of 2023, respondents whose organizations provide services outside the U.S. are more optimistic concerning business. Of the 21 percent of Services Business Survey Committee respondents who report that they export, 37 percent predict an increase (37 percent moderate and 0 percent substantial) over the next six months. Three percent of the respondents expect a decrease in their exports (2 percent moderate and 1 percent substantial), and 60 percent anticipate no change in exports over the next six months. Of the industries that export, the six that expect growth in the first half of 2023 — listed in order — are: Real Estate, Rental & Leasing; Construction; Information; Mining; Finance & Insurance; and Professional, Scientific & Technical Services.

Import Business — Predicted Change for Next Half Year (First Half of 2023)

Manufacturing

Respondents expect increases in imports in the first half of 2023. Of the 71 percent of purchasers who reported they import materials, 29 percent predict an increase over the next six months (25 percent moderate and 4 percent substantial), while 18 percent predict a decrease (15 percent moderate and 3 percent substantial). The remaining 54 percent of survey respondents expect no change in imports in the first half of 2023. The 11 industries expecting growth in imports — listed in order — are: Printing & Related Support Activities; Apparel, Leather & Allied Products; Paper Products; Textile Mills; Nonmetallic Mineral Products; Transportation Equipment; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Machinery; Chemical Products; and Computer & Electronic Products.

Services

Services executives’ expectations for the use of imports for the first half of 2023 have declined compared to their expectations in December 2021 for the first half of 2022. Of the 35 percent of services organizations who reported they import materials and services, 26 percent (17 percent moderate and 9 percent substantial) predict an increase during the first half of 2023. Seventeen percent of respondents (15 percent moderate and 2 percent substantial) predict a decrease. The remaining 57 percent expect no change in imports over the next six months. The eight industries expecting growth in imports — listed in order — are: Management of Companies & Support Services; Mining; Utilities; Professional, Scientific & Technical Services; Finance & Insurance; Educational Services; Information; and Health Care & Social Assistance.

Inventory-To-Sales Ratio

Manufacturing

Of the manufacturing panel, 25 percent anticipate increasing their purchased inventory-to-sales ratio during 2023. An additional 20 percent expect their ratio to drop, and 55 percent see no change. The diffusion index of 52.3 percent suggests the inventory-to-sales ratio will increase in 2023.

Services


Twelve percent anticipate increasing their purchased inventory-to-sales ratio during 2023. An additional 18 percent expect their ratio to drop, and 70 percent see no change. The diffusion index of 46.7 percent suggests the inventory-to-sales ratio will decrease in 2023.

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 2023 — Manufacturing Only

Manufacturing

Purchasing and supply executives are expecting the U.S. dollar will generally strengthen in 2023 against all the foreign currencies listed below. The average diffusion index for this forecast is 63.8 percent, an increase of 19 percentage points compared to the December 2021 forecast average of 44.8 percent for 2022.

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 — 2022 versus 2021

Manufacturing

Overall, revenues increased for manufacturers. Sixty percent of respondents say revenue was better than 2021, increasing on average 17.7 percent. Twelve percent say their revenues decreased in 2022 by an average of 11.3 percent, and the remaining 28 percent indicate no change. Overall, purchasing and supply executives indicate a net increase of 9.3 percent in business revenues for 2022 over 2021. This is slightly more than the 9.2-percent increase that was forecast in May 2022 for all of 2022 and more than the 6.5-percent increase predicted in December 2021 for all of 2022. The 15 industries reporting increases in revenues in 2022 — listed in order — are: Printing & Related Support Activities; Petroleum & Coal Products; Apparel, Leather & Allied Products; Fabricated Metal Products; Plastics & Rubber Products; Computer & Electronic Products; Primary Metals; Transportation Equipment; Chemical Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Wood Products; Paper Products; Machinery; and Electrical Equipment, Appliances & Components.

Services

Services supply management executives report that business revenues for 2022 increased compared to 2021 by 2.1 percent. This is less than the 4.9-percent increase predicted for the year in May 2022. The 47 percent of respondents reporting better business in 2022 than in 2021 estimate an average revenue increase of 9.1 percent. This contrasts with an average decrease of 12.3 percent reported by the 18 percent of respondents who indicate worse business in 2022. The remaining 35 percent have experienced no change in 2022. The 13 industries reporting increases in revenues in 2022 are: Wholesale Trade; Transportation & Warehousing; Construction; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Mining; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Utilities; Other Services; Educational Services; Finance & Insurance; and Management of Companies & Support Services.

Business Revenues Prediction for 2023

Manufacturing

Manufacturing survey respondents forecast that business revenues for 2023 will be stronger than in 2022. The 45 percent of respondents forecasting better organizational business revenues in 2023 estimate an average increase of 14.9 percent. This contrasts with an average decrease of 10.3 percent forecast by the 12 percent who predict lower business revenues in 2023. Including the 43 percent who see no change in 2023, the forecast for overall net increase in business revenues for 2023 is 5.5 percent. Fifteen of the 18 manufacturing industries expect revenue improvement in 2023, listed in order of largest to smallest projected increase: Plastics & Rubber Products; Transportation Equipment; Apparel, Leather & Allied Products; Fabricated Metal Products; Primary Metals; Food, Beverage & Tobacco Products; Printing & Related Support Activities; Furniture & Related Products; Machinery; Chemical Products; Computer & Electronic Products; Miscellaneous Manufacturing; Paper Products; Electrical Equipment, Appliances & Components; and Textile Mills.

Services

Services survey respondents forecast that business revenues for 2023 will improve by an average of 3.1 percent. This is more than the 2.1-percent increase reported for 2022, and less than the 4.3-percent increase predicted one year ago for 2022 revenues. The 50 percent of respondents forecasting better business in 2023 estimate an average revenue increase of 8.2 percent. This contrasts with an average decrease of 9.4 percent forecast by the 11 percent who predict worse business in 2023. The remaining 39 percent see no change. The 14 industries expecting revenue increases in 2023 — listed in order of largest to smallest projected increase — are: Transportation & Warehousing; Mining; Professional, Scientific & Technical Services; Management of Companies & Support Services; Accommodation & Food Services; Real Estate, Rental & Leasing; Retail Trade; Utilities; Construction; Public Administration; Information; Finance & Insurance; Educational Services; and Other Services.

Profit Margins

Manufacturing

Survey respondents report that profit margins increased on average during the second and third quarters of 2022, as 33 percent experienced an increase in profit margins, 29 percent had lower margins, and 38 percent reported no change. Expectations are higher between now and May 2023, as 34 percent of respondents forecast better profit margins, 19 percent predict lower profit margins, and 47 percent predict no change. The 13 industries expecting an increase in profit margins through May 2023 — listed in order of percentage increase — are: Printing & Related Support Activities; Electrical Equipment, Appliances & Components; Wood Products; Petroleum & Coal Products; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Plastics & Rubber Products; Fabricated Metal Products; Primary Metals; Machinery; Transportation Equipment; and Chemical Products.

Services

Among services supply management executives, 21 percent indicated their organizations experienced an increase in profit margins during the second and third quarters of 2022, 34 percent found smaller profit margins, and 45 percent had no change in margins during the same period. From now through May 2023, 21 percent of supply managers expect improved profit margins, 30 percent expect lower profit margins, and the remaining 49 percent of respondents anticipate no change. The three industries expecting an increase in profit margins through May 2023 are: Management of Companies & Support Services; Accommodation & Food Services; and Professional, Scientific & Technical Services.

Business Comparison

The First Half of 2023 Compared with the Last Half of 2022

Manufacturing

Manufacturing survey respondents are pessimistic about the next six months, as reflected in the diffusion index reading of 47.7 percent. Comparing their outlook for the first half of 2023 to the last half of 2022, 24 percent predict it will be better, 28 percent predict it will be worse, and 48 percent expect no change. The eight industries expecting improvement in the first half of 2023 — listed in order — are: Printing & Related Support Activities; Apparel, Leather & Allied Products; Primary Metals; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Fabricated Metal Products; Electrical Equipment, Appliances & Components; and Machinery.

Services


The first half of 2023 is predicted to be better than the last half of 2022, according to services purchasing and supply executives. The diffusion index indicating current expectations registered 55.8 percent. Twenty-nine percent of respondents expect the first half of next year to be better than the last half of 2022. Seventeen percent anticipate it will be worse, and 53 percent predict no change. The 10 industries expecting improvement in the first half of 2023 — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Public Administration; Management of Companies & Support Services; Professional, Scientific & Technical Services; Accommodation & Food Services; Educational Services; Other Services; Information; Transportation & Warehousing; and Utilities.

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 2023 Compared with the First Half of 2023

Manufacturing

In contrast, purchasing and supply executives are optimistic about the second half of 2023 compared to the first half. The percentage of survey respondents who forecast the second half of 2023 to be better than the first half is 32 percent, while 18 percent expect it to be worse, and 49 percent expect no change. The diffusion index figure for the second half of 2023 is 57 percent, compared to 47.7 percent for the first half of 2023. The 12 industries predicting improvement in the second half of 2023 — listed in order — are: Printing & Related Support Activities; Paper Products; Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Miscellaneous Manufacturing; Chemical Products; Primary Metals; Textile Mills; Fabricated Metal Products; Computer & Electronic Products; and Machinery.

Services

Services purchasing and supply executives feel more optimistic about the second half of 2023 as compared to the first half of the year. (The diffusion index reading for the second half is 61.7 percent; it is 55.8 percent for the first half.) The percentage of respondents who currently forecast the second half of 2023 to be better than the first half is 39 percent, while 16 percent expect it to be worse. An additional 45 percent of purchasers expect no change. The 14 industries expecting improvement in the second half of 2023 — listed in order — are: Accommodation & Food Services; Arts, Entertainment & Recreation; Retail Trade; Information; Real Estate, Rental & Leasing; Finance & Insurance; Professional, Scientific & Technical Services; Transportation & Warehousing; Public Administration; Other Services; Educational Services; Construction; Utilities; and Health Care & Social Assistance.

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 2022 reported in December 2021, survey respondents this year are less optimistic about the outlook for 2023. Twenty-seven percent of respondents believe 2023 will be better than 2022. Forty-six percent of respondents believe 2023 will be the same as 2022, and 27 percent believe 2023 will be worse than 2022. The resulting diffusion index for the 2023 outlook is 50 percent, compared with 66.2 percent for 2022 from one year ago.

Services


Services survey respondents are overall less optimistic, compared to their predictions for 2022. A smaller proportion of respondents this year believe 2023 will be better than 2022. The diffusion index looking forward into 2023 of 55.6 percent is lower than the diffusion index looking forward into 2022 (63.3 percent).

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:

Special Question Topic #2: Hiring Difficulties

Manufacturing

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

• We raised wages (or used other forms of monetary compensation) to recruit new hires (45%)
• We didn’t hire/were not able to hire as many workers as we would have liked (34%)
• We lowered our hiring standards (10%)
• We didn’t have difficulty hiring because we weren’t trying to hire new workers (3%)
• Something else (8%)

Services

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

• We raised wages (or used other forms of monetary compensation) to recruit new hires (51%)
• We didn’t hire/were not able to hire as many workers as we would have liked (32%)
• We lowered our hiring standards (7%)
• Something else (10%)

Special Questions Topic #3: No Hiring Difficulties

Manufacturing

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

• We raised wages in order to attract the applicants we needed (27%)
• The local labor market is not that tight; it was easy to find an ample supply of applicants (17%)
• We didn’t have difficulty hiring because we weren’t trying to hire new workers (16%)
• We lowered our hiring standards (9%)
• Something else (31%)

Services

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

• We raised wages in order to attract the applicants we needed (45%)
• We didn’t have difficulty hiring because we weren’t trying to hire new workers (17%)
• We lowered our hiring standards (13%)
• The local labor market is not that tight; it was easy to find an ample supply of applicants (5%)
• Something else (20%)

Special Question Topic #4: Supply Chain Problems

We asked the panel, “Do you anticipate supply chain problems for the first quarter/second quarter to be better, same or worse?”

Respondents indicated:

Special Question #5: Ability To Pass Pricing Increases

Manufacturing

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

• Yes (72%)
• No (28%)

Services

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

• Yes (48%)
• No (52%)

Special Question Topic #6: 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 or lack of truck drivers or domestically-produced supplies like steel or aluminum)?”

Respondents indicated:

Manufacturing

• Foreign-Sourced (56%)
• Domestic-Sourced (44%)

Services

• Foreign-Sourced (49%)
• Domestic-Sourced (51%)

Special Question Topic #7: Level of Backorders Supporting Production

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

Respondents indicated:

Manufacturing

• The level of backorders should not have meaningful effects on production or business activity. (52%)
• The level of backorders should provide a small boost to production or business activity. (26%)
• The level of backorders should provide a large boost to production or business activity. (9%)
• Declining backorders should provide a drag on production or business activity. (12%)

Services

• The level of backorders should not have meaningful effects on production or business activity. (56%)
• The level of backorders should provide a small boost to production or business activity. (25%)
• The level of backorders should provide a large boost to production or business activity. (4%)
• Declining backorders should provide a drag on production or business activity. (15%)

Special Question Topic #8: Reshoring from China

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

Respondents indicated:

Manufacturing

• Yes, either my organization or my suppliers are actively substituting domestic production for production or imports from China. (42%)
• No, neither my organization nor my suppliers are affected by reshoring from China. (40%)
• No, but either my organization or my suppliers are substituting production to other (non-U.S.) locations for production or imports from China. (18%)

Services

• Yes, either my organization or my suppliers are actively substituting domestic production for production or imports from China. (26%)
• No, neither my organization nor my suppliers are affected by reshoring from China. (49%)
• No, but either my organization or my suppliers are substituting production to other (non-U.S.) locations for production or imports from China. (25%)

Summary

Manufacturing

The manufacturing sector contracted in November, and the forecast indicates that this may continue in the first half of 2023, but improve in the second half.

• Operating rate is currently at 88.4 percent.
• Production capacity increased by 6.7 percent in 2022.
• Production capacity is expected to increase by 5.3 percent in 2023.
• Capital expenditures increased 12 percent in 2022.
• Capital expenditures are expected to increase 2.6 percent in 2023.
• Prices paid increased 11.4 percent in 2022.
• Overall, 2023 prices paid are expected to increase 2 percent.
• Labor and benefit costs are expected to increase 5.8 percent in 2023.
• Manufacturing employment is predicted to increase 3.9 percent in 2023.
• U.S. exports growth expected in 2023.
• U.S. imports growth expected in 2023.
• Manufacturing revenues increased 9.3 percent in 2022.
• Manufacturing revenues are expected to increase 5.5 percent in 2023.
• The U.S. dollar is expected to strengthen versus the currencies of seven major trading partners in 2023.
• Manufacturing supply managers have a mixed outlook, with 27 percent of respondents predicting 2023 will be better than 2022 and 27 percent of respondents predicting 2023 will be worse than 2022.

Services

• The services sector continues to expand, and the forecast indicates continued expansion in 2023.
• Operating rate is currently at 89.9 percent.
• Production capacity increased 3.9 percent in 2022.
• Production and provision capacity is expected to increase 3.4 percent in 2023.
• Capital expenditures increased 6 percent in 2022.
• Capital expenditures are expected to increase 2.8 percent in 2023.
• Prices paid increased 11 percent in 2022.
• Prices paid are expected to increase 8.4 percent in 2023.
• Labor and benefit costs are expected to increase 3.5 percent in 2023.
• Employment is expected to increase 1 percent in 2023.
• Export levels expected to increase in 2023.
• Import growth expected in 2023.
• Services revenues are up 2.1 percent in 2022.
• Services revenues are expected to rise 3.1 percent in 2023.
• Services supply managers are positive in their outlook, with 31 percent of respondents predicting 2023 will improve compared to 2022.

*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, 2022

Source: Institute for Supply Management

HOUSTON — December 14, 2022 — Orion Engineered Carbons, a global specialty chemicals company, announced today it was upgraded to a “B” score by the nonprofit organization CDP, recognizing Orion has addressed the environmental impact of its businesses and ensures good environmental management.

The London-based CDP, formerly known as the “Carbon Disclosure Project,” operates a global system that enables companies to report their environmental impact. CDP assesses the information with its own methodology and provides a score. More than 18,700 companies worldwide reported data through CDP in 2022.

“Our ‘B’ score is the latest example of the tremendous progress we have made in recent years with sustainability,” Orion CEO Corning Painter said. “Accountability is one of Orion’s core values, so we are committed to reporting openly and transparently about our climate program – especially the CO2 emissions reduction measures we have implemented and the success we’ve had protecting the environment and our communities.”

Since 2017, Orion has disclosed its climate-related performance through CDP and until now received a “C” score, indicating an awareness level of engagement. CDP says companies with a “B” score have reached the management level. They “have addressed the environmental impacts of their business and ensure good environmental management,” the organization says.

CDP says its “A” list is for companies that have advanced beyond awareness and management to become leaders on environmental transparency and action.

Earlier this year, Orion was upgraded from a “Silver” to a “Gold” designation by EcoVadis, an independent organization that assesses companies’ sustainability performance in the areas of environment, labor & human rights, ethics, sustainable procurement and overall sustainability governance. The score placed Orion in the top 3% of companies assessed by EcoVadis.

Posted: December 15, 2022

Source: Orion Engineered Carbons