Manufacturing PMI® at 61.2%; May 2021 Manufacturing ISM® Report On Business®

TEMPE, Ariz. — June 1, 2021 — Economic activity in the manufacturing sector grew in May, with the overall economy notching a 12th consecutive month of growth, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee:

“The May Manufacturing PMI® registered 61.2 percent, an increase of 0.5 percentage point from the April reading of 60.7 percent. This figure indicates expansion in the overall economy for the 12th month in a row after contraction in April 2020. The New Orders Index registered 67 percent, increasing 2.7 percentage points from the April reading of 64.3 percent. The Production Index registered 58.5 percent, a decrease of 4 percentage points compared to the April reading of 62.5 percent. The Backlog of Orders Index registered 70.6 percent, 2.4 percentage points higher compared to the April reading of 68.2 percent. The Employment Index registered 50.9 percent; 4.2 percentage points lower than the April reading of 55.1 percent. The Supplier Deliveries Index registered 78.8 percent, up 3.8 percentage points from the April figure of 75 percent. The Inventories Index registered 50.8 percent, 4.3 percentage points higher than the April reading of 46.5 percent. The Prices Index registered 88 percent, down 1.6 percentage points compared to the April reading of 89.6 percent. The New Export Orders Index registered 55.4 percent, an increase of 0.5 percentage point compared to the April reading of 54.9 percent. The Imports Index registered 54 percent, a 1.8-percentage point increase from the April reading of 52.2 percent.”

Fiore continues, “The manufacturing economy continued expansion in May. Business Survey Committee panelists reported that their companies and suppliers continue to struggle to meet increasing levels of demand. Record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy. Worker absenteeism, short-term shutdowns due to part shortages, and difficulties in filling open positions continue to be issues that limit manufacturing-growth potential. Optimistic panel sentiment increased, with 36 positive comments for every cautious comment, compared to an 11-to-1 ratio in April. Demand expanded, with the (1) New Orders Index growing at a strong level, supported by the New Export Orders Index continuing to expand, (2) Customers’ Inventories Index hitting another all-time low and (3) Backlog of Orders Index continuing at a record-high level. Consumption (measured by the Production and Employment indexes) indicated slowing expansion, posting a combined 8.2-percentage point decrease to the Manufacturing PMI® calculation. The Employment Index expanded for the sixth straight month, but panelists continue to note significant difficulties in attracting and retaining labor at their companies’ and suppliers’ facilities. Consumption was clearly limited due to labor issues and supply constraints as demand remains very high. Inputs — expressed as supplier deliveries, inventories, and imports — continued to support input-driven constraints to production expansion, at higher rates compared to April, due to continued trouble in supplier deliveries. Inputs positively contributed to the PMI® calculation, by a combined 8.1 percentage points. Importation of items slightly improved in the period. (The Inventories and Supplier Deliveries indexes directly factor into the PMI®; the Imports Index does not.) The Prices Index expanded for the 12th consecutive month, indicating continued supplier pricing power and scarcity of supply chain goods.

“All of the six biggest manufacturing industries — Computer & Electronic Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; Chemical Products; Transportation Equipment; and Petroleum & Coal Products, in that order — registered moderate to strong growth in May.

“Manufacturing performed well for the 12th straight month, with demand, consumption and inputs registering strong growth compared to April. Panelists companies and their supply chains continue to struggle to respond to strong demand due to the difficulty in hiring and retaining direct labor. Record backlog, customer inventories and raw material lead times are being reported. The manufacturing recovery has transitioned from first addressing demand headwinds, to now overcoming labor obstacles across the entire value chain,” says Fiore.

Sixteen of 18 manufacturing industries reported growth in May, in the following order: Furniture & Related Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Textile Mills; Primary Metals; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Food, Beverage & Tobacco Products; Machinery; Chemical Products; Miscellaneous Manufacturing; Transportation Equipment; Wood Products; Paper Products; and Petroleum & Coal Products. The only industry reporting contraction in May is Printing & Related Support Activities.

What Respondents Are Saying

“Supplier performance — deliveries, quality, it’s all suffering. Demand is high, and we are struggling to find employees to help us keep up.” [Computer & Electronic Products]

“Changes in currency exchange rates favorably contributed to our quarterly performance. Continued strong consumer demand for our high-quality products also provided increased sales.” [Chemical Products]

“Ongoing component shortages are driving dual sourcing and longer-term supply plans to be implemented.” [Transportation Equipment]

“Difficulty finding workers at the factory and warehouse level is not only impacting our production, but suppliers’ as well: Spot shortages and delays are common due to an inability to staff lines. Delays at the port continue to strain inventory levels.” [Food, Beverage & Tobacco Products]

“[A] lack of qualified candidates to fill both open office and shop positions is having a negative impact on production throughput. Challenges mounting for meeting delivery dates to customers due to material and services shortages and protracted lead times. This situation does not look to improve until possibly the fourth quarter of 2021 or beyond.” [Fabricated Metal Products]

“Labor shortages impacting internal and supplier production. Logistics performance is terrible.” [Electrical Equipment, Appliances & Components]

“Business is good, but labor and raw materials are becoming very problematic, driving increases in costs.” [Furniture & Related Products]

“The continued global supply chain tightness and raw material shortages from the Gulf (winter storms) make it less likely that any business can recover this year. Demand is strong, but what good is that if you cannot get the materials needed to produce your finished goods?” [Nonmetallic Mineral Products]

“Seeing a high demand and backlog of orders.” [Plastics & Rubber Products]

“Very busy, but still experiencing labor shortages.” [Primary Metals]

MANUFACTURING AT A GLANCE

May 2021

Index Series Index

May

Series Index

Apr

Percentage

Point

Change

Direction Rate of Change Trend* (Months)
Manufacturing PMI® 61.2 60.7 +0.5 Growing Faster 12
New Orders 67.0 64.3 +2.7 Growing Faster 12
Production 58.5 62.5 -4.0 Growing Slower 12
Employment 50.9 55.1 -4.2 Growing Slower 6
Supplier Deliveries 78.8 75.0 +3.8 Slowing Faster 63
Inventories 50.8 46.5 +4.3 Growing From 
Contracting 1
Customers’ Inventories 28.0 28.4 -0.4 Too Low Faster 56
Prices 88.0 89.6 -1.6 Increasing Slower 12
Backlog of Orders 70.6 68.2 +2.4 Growing Faster 11
New Export Orders 55.4 54.9 +0.5 Growing Faster 11
Imports 54.0 52.2 +1.8 Growing Faster 11
OVERALL ECONOMY Growing Faster 12
Manufacturing Sector Growing Faster 12

 

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Inventories indexes.

*Number of months moving in current direction.

Commodities Reported Up/Down In Price And In Short Supply

Commodities Up in Price
Aluminum (12); Aluminum Products (2); Brass; Coatings (2); Copper (12); Copper Products (3); Corn; Corrugate (8); Corrugated Boxes (7); Diesel (5); Electrical Components (6); Electronic Components (6); Epoxy Resin; Fabricated Metal Components; Foam Products (3); Freight (7); High-Density Polyethylene (HDPE) (5); Hydrochloric Acid; Labor — Temporary; Linerboard; Low-Density Polyethylene; Lubricants (2); Lumber (11); Medium-Density Fiberboard (MDF); Natural Gas (2); Ocean Freight (6); Packaging Supplies (6); Paper; Paper Products (6); Plastic Containers; Plastic Resins (9); Polyethylene (4); Polyethylene Terephthalate (PET) Products; Polypropylene (11); Precious Metals (2); Resin-Based Products (4); Rubber Products (4); Semiconductors (4); Solvents; Soybean Products (8); Steel (10); Steel — Carbon (6); Steel — Cold Rolled (9); Steel — Galvanized; Steel — Hot Rolled (9); Steel — Scrap; Steel — Stainless (7); Steel Bars; Steel Drums; Steel Products (9); Stainless Steel Components; Wire Harnesses; Wood for Pallets (2); and Wood — Pallets (Finished Product) (6).

Commodities Down in Price
 Acetone.

Commodities in Short Supply 
Acrylates; Aluminum (2); Aluminum Products; Coatings; Corrugated Boxes (7); Electrical Components (8); Electronic Components (6); Foam Products (3); Labor — Temporary; Lumber (3); Medium-Density Fiberboard (MDF); Nylon Fiber (2); Ocean Freight (2); Plastic Containers; Plastic Products (4); Plastic Resins — Other (3); Polycarbonates; Polyethylene Terephthalate (PET) Products; Polypropylene (2); Polyvinyl Chloride (PVC) Resin; Printed Circuit Boards; Printed Circuit Board Assemblies; Semiconductors (6); Steel (6); Steel — Cold Rolled; Steel — Galvanized; Steel — Hot Rolled (7); Steel — Stainless (3); Steel Bars; Steel Products (4); Steel Tubing; and Wood — Pallets (2).

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

May 2021 Manufacturing Index Summaries

Manufacturing PMI®

Manufacturing grew in May, as the Manufacturing PMI® registered 61.2 percent, 0.5 percentage point higher than the April reading of 60.7 percent. “The Manufacturing PMI® continued to indicate strong sector expansion and U.S. economic growth in May. All five subindexes that directly factor into the Manufacturing PMI® were in growth territory. All of the six biggest manufacturing industries expanded, in the following order: Computer & Electronic Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; Chemical Products; Transportation Equipment; and Petroleum & Coal Products. The New Orders and Production indexes continued to expand at strong levels. The Supplier Deliveries Index continued to reflect suppliers’ difficulties in maintaining delivery rates, due to a lack of direct labor, transportation challenges and increased demand. All 10 subindexes were positive for the period; a reading of ‘too low’ for Customers’ Inventories Index is considered a positive for future production,” says Fiore. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

A Manufacturing PMI® above 43.1 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the May Manufacturing PMI® indicates the overall economy grew in May for the 12th consecutive month following contraction in April 2020. “The past relationship between the Manufacturing PMI® and the overall economy indicates that the Manufacturing PMI® for May (61.2 percent) corresponds to a 5.2-percent increase in real gross domestic product (GDP) on an annualized basis,” says Fiore.

The Last 12 Months

Month Manufacturing

PMI®

Month Manufacturing

PMI®

May 2021 61.2 Nov 2020 57.7
Apr 2021 60.7 Oct 2020 58.8
Mar 2021 64.7 Sep 2020 55.7
Feb 2021 60.8 Aug 2020 55.6
Jan 2021 58.7 Jul 2020 53.7
Dec 2020 60.5 Jun 2020 52.2
Average for 12 months – 58.4

High – 64.7

Low – 52.2

 

New Orders

ISM®’s New Orders Index registered 67 percent in May, up 2.7 percentage points compared to the 64.3 percent reported in April. This indicates that new orders grew for the 12th consecutive month. “All of the six largest manufacturing sectors — Computer & Electronic Products; Chemical Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; Petroleum & Coal Products; and Transportation Equipment — expanded in this order, at strong levels,” says Fiore. A New Orders Index above 52.8 percent, over time, is generally consistent with an increase in the Census Bureau’s series on manufacturing orders (in constant 2000 dollars).

Of the 18 manufacturing industries, the 16 that reported growth in new orders in May — in the following order — are: Nonmetallic Mineral Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; Paper Products; Primary Metals; Computer & Electronic Products; Plastics & Rubber Products; Machinery; Chemical Products; Textile Mills; Fabricated Metal Products; Food, Beverage & Tobacco Products; Wood Products; Petroleum & Coal Products; Transportation Equipment; and Miscellaneous Manufacturing. The only industry reporting a decline in new orders in May is Printing & Related Support Activities.

New Orders %Higher %Same %Lower Net Index
May 2021 46.9 43.1 10.0 +36.9 67.0
Apr 2021 48.7 43.4 7.9 +40.8 64.3
Mar 2021 45.3 49.2 5.5 +39.8 68.0
Feb 2021 42.4 51.2 6.4 +36.0 64.8

 

Production

The Production Index registered 58.5 percent in May, 4 percentage points lower than the April reading of 62.5 percent, indicating growth for the 12th consecutive month. “Five (Fabricated Metal Products; Computer & Electronic Products; Chemical Products; Food, Beverage & Tobacco Products; and Transportation Equipment) of the top six industries expanded at strong levels. The index registered its lowest reading since the full recovery began in June 2020 when it registered 56 percent. Lack of direct labor and raw materials were constraints to production growth,” says Fiore. An index above 52.1 percent, over time, is generally consistent with an increase in the Federal Reserve Board’s Industrial Production figures.

The 13 industries reporting growth in production during the month of May — listed in order — are: Nonmetallic Mineral Products; Furniture & Related Products; Plastics & Rubber Products; Primary Metals; Machinery; Wood Products; Fabricated Metal Products; Computer & Electronic Products; Chemical Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Transportation Equipment; and Electrical Equipment, Appliances & Components. The two industries reporting decreased production in May are: Printing & Related Support Activities; and Paper Products.

Production %Higher %Same %Lower Net Index
May 2021 39.2 43.6 17.2 +22.0 58.5
Apr 2021 44.3 44.3 11.4 +32.9 62.5
Mar 2021 43.0 48.9 8.1 +34.9 68.1
Feb 2021 36.8 51.7 11.6 +25.2 63.2

 

Employment

ISM®’s Employment Index registered 50.9 percent in May, 4.2 percentage points lower than the April reading of 55.1 percent. “The Employment Index grew for the sixth month in a row. Of the six big manufacturing sectors, only two (Fabricated Metal Products; and Food, Beverage & Tobacco Products) expanded. Continued strong new-order levels, low customer inventories and expanding backlogs continue to indicate employment strength; however, survey panelists’ companies continue to struggle to meet labor-management plans. Panelists’ comments indicate an overwhelming majority of their companies are hiring or attempting to hire, with more than 50 percent of them expressing difficulty in doing so,” says Fiore. An Employment Index above 50.6 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.

Of the 18 manufacturing industries, the nine industries reporting employment growth in May — in the following order — are: Electrical Equipment, Appliances & Components; Textile Mills; Primary Metals; Furniture & Related Products; Plastics & Rubber Products; Fabricated Metal Products; Miscellaneous Manufacturing; Machinery; and Food, Beverage & Tobacco Products. The three industries reporting a decrease in employment in May are: Printing & Related Support Activities; Nonmetallic Mineral Products; and Chemical Products.

Employment %Higher %Same %Lower Net Index
May 2021 20.8 61.1 18.0 +2.8 50.9
Apr 2021 21.2 67.9 10.9 +10.3 55.1
Mar 2021 23.9 69.0 7.2 +16.7 59.6
Feb 2021 19.2 68.5 12.3 +6.9 54.4

 

Supplier Deliveries†

The delivery performance of suppliers to manufacturing organizations was slower in May, as the Supplier Deliveries Index registered 78.8 percent. This is 3.8 percentage points higher than the 75 percent reported in April and the highest reading since April 1974, when the index registered 82.1 percent. Five (Computer & Electronic Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; Transportation Equipment; and Chemical Products) of the six top manufacturing industries reported slowing deliveries. “Deliveries slowed at a faster rate compared to the previous month. The Supplier Deliveries Index reflects difficulties suppliers continue to experience in meeting customer demand, including (1) hiring challenges, (2) longer raw materials lead times and higher prices, as well as product shortages, and (3) limited transportation availability. Supplier labor, materials and transportation constraints are not expected to diminish in the second quarter, putting further strain on panelists’ production plans and raw-materials inventory accounts. Production material lead times are at the highest level since January 1987 when we began recording lead times,” says Fiore. A reading below 50 percent indicates faster deliveries, while a reading above 50 percent indicates slower deliveries.

Of the 18 industries, 16 reported slower supplier deliveries in May, listed in the following order: Apparel, Leather & Allied Products; Printing & Related Support Activities; Nonmetallic Mineral Products; Computer & Electronic Products; Textile Mills; Food, Beverage & Tobacco Products; Machinery; Fabricated Metal Products; Furniture & Related Products; Paper Products; Plastics & Rubber Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Transportation Equipment; Chemical Products; and Primary Metals. No industries reported faster supplier deliveries in May.

Supplier Deliveries %Slower %Same %Faster Net Index
May 2021 58.9 39.7 1.4 +57.5 78.8
Apr 2021 53.9 42.2 3.9 +50.0 75.0
Mar 2021 54.9 43.5 1.6 +53.3 76.6
Feb 2021 45.4 53.1 1.5 +43.9 72.0

 

Inventories

The Inventories Index registered 50.8 percent in May, 4.3 percentage points higher than the 46.5 percent reported for April. The Inventories Index moved back into growth territory after contracting for one month. “Inventories remain unstable due to ongoing supplier constraints. In May, supplier delivery rates were not able to keep up with new-order and production levels, causing lack of expansion of the Inventories Index and a constraint on panelists’ companies production levels,” says Fiore. An Inventories Index greater than 44.5 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).

The eight industries reporting higher inventories in May — in the following order — are: Furniture & Related Products; Textile Mills; Food, Beverage & Tobacco Products; Primary Metals; Chemical Products; Computer & Electronic Products; Fabricated Metal Products; and Transportation Equipment. The seven industries reporting a decrease in inventories in May — listed in order — are: Apparel, Leather & Allied Products; Printing & Related Support Activities; Nonmetallic Mineral Products; Paper Products; Miscellaneous Manufacturing; Machinery; and Electrical Equipment, Appliances & Components.

Inventories %Higher %Same %Lower Net Index
May 2021 23.8 54.1 22.2 +1.6 50.8
Apr 2021 18.2 58.3 23.5 -5.3 46.5
Mar 2021 22.4 58.4 19.2 +3.2 50.8
Feb 2021 19.8 63.1 17.1 +2.7 49.7

 

Customers’ Inventories†

ISM®’s Customers’ Inventories Index registered 28 percent in May, 0.4 percentage point lower than the 28.4 percent reported for April, indicating that customers’ inventory levels were considered too low. “Customers’ inventories are too low for the 56th consecutive month, a positive for future production growth. For the third consecutive month, this subindex has registered its lowest reading since it was established in January 1997. For 10 straight months, the Customers’ Inventories Index has been at historically low levels,” says Fiore.

None of the 18 industries reported higher customers’ inventories in May. The 16 industries reporting customers’ inventories as too low during May — listed in order — are: Wood Products; Primary Metals; Textile Mills; Apparel, Leather & Allied Products; Fabricated Metal Products; Computer & Electronic Products; Transportation Equipment; Chemical Products; Machinery; Plastics & Rubber Products; Paper Products; Food, Beverage & Tobacco Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; Nonmetallic Mineral Products; and Miscellaneous Manufacturing.

Customers’ 
Inventories % 
Reporting %Too 
High %About 
Right %Too 
Low Net Index
May 2021 79 4.6 46.8 48.6 -44.0 28.0
Apr 2021 80 3.7 49.4 46.9 -43.2 28.4
Mar 2021 79 5.3 49.2 45.5 -40.2 29.9
Feb 2021 79 4.8 55.4 39.8 -35.0 32.5

 

Prices†


The ISM® Prices Index registered 88 percent, a decrease of 1.6 percentage points compared to the April reading of 89.6 percent, indicating raw materials prices increased for the 12th consecutive month. In the last four months, the index has been at its highest levels since July 2008, the last of five straight months over 80 percent, when it registered 90.4 percent. “Virtually all basic and intermediate manufacturing materials are experiencing price increases as a result of product scarcity and the dynamics of supply and demand,” says Fiore. A Prices Index above 52.7 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Producer Price Index for Intermediate Materials.

In May, 17 industries reported paying increased prices for raw materials, in the following order: Apparel, Leather & Allied Products; Furniture & Related Products; Textile Mills; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Machinery; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Primary Metals; Computer & Electronic Products; Paper Products; Miscellaneous Manufacturing; Transportation Equipment; Plastics & Rubber Products; Wood Products; Chemical Products; and Petroleum & Coal Products. No industries reported lower prices in May.

Prices %Higher %Same %Lower Net Index
May 2021 77.1 21.6 1.2 +75.9 88.0
Apr 2021 80.1 19.1 0.9 +79.2 89.6
Mar 2021 71.6 27.9 0.5 +71.1 85.6
Feb 2021 73.1 25.7 1.2 +71.9 86.0

 

Backlog of Orders†


ISM®’s Backlog of Orders Index registered 70.6 percent in May, a 2.4-percentage point increase compared to the 68.2 percent reported in April, indicating order backlogs expanded for the 11th straight month. May’s reading is the highest since reporting for this subindex began in January 1993. “Backlogs expanded at faster rates in May, indicating 11 months of new-order intakes more than fully offsetting production outputs. Five (Fabricated Metal Products; Transportation Equipment; Chemical Products; Food, Beverage & Tobacco Products; and Computer & Electronic Products) of the six big industry sectors reported that backlogs expanded strongly,” says Fiore.

The 15 industries reporting growth in order backlogs in May, in the following order, are: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Machinery; Plastics & Rubber Products; Primary Metals; Paper Products; Wood Products; Furniture & Related Products; Fabricated Metal Products; Transportation Equipment; Chemical Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; and Computer & Electronic Products. No industries reported lower order backlogs in May.

Backlog of 
Orders % 
Reporting %Higher %Same %Lower Net Index
May 2021 91 49.1 42.9 8.0 +41.1 70.6
Apr 2021 89 44.4 47.6 8.0 +36.4 68.2
Mar 2021 91 43.1 48.8 8.1 +35.0 67.5
Feb 2021 91 38.5 51.0 10.5 +28.0 64.0

 

New Export Orders†

ISM®’s New Export Orders Index registered 55.4 percent in May, up 0.5 percentage point compared to the April reading of 54.9 percent. “The New Export Orders Index grew for the 11th consecutive month, and at a faster rate. Of the six big industry sectors, four (Transportation Equipment; Fabricated Metal Products; Chemical Products; and Computer & Electronic Products) expanded. New export orders were again a positive factor to the growth in the New Orders Index,” says Fiore.

The eight industries reporting growth in new export orders in May — in the following order — are: Nonmetallic Mineral Products; Miscellaneous Manufacturing; Transportation Equipment; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Machinery; Chemical Products; and Computer & Electronic Products. The only industry reporting a decrease in new export orders in May is Wood Products. Seven industries reported no change in exports in May as compared to April.

New Export 
Orders % 
Reporting %Higher %Same %Lower Net Index
May 2021 74 16.8 77.2 6.0 +10.8 55.4
Apr 2021 72 16.3 77.1 6.5 +9.8 54.9
Mar 2021 76 16.7 75.6 7.7 +9.0 54.5
Feb 2021 73 20.5 73.4 6.1 +14.4 57.2

 

Imports†


ISM®’s Imports Index registered 54 percent in May, an increase of 1.8 percentage points compared to the 52.2 percent reported for April. “Imports expanded for the 11th consecutive month, at a faster rate compared to April, reflecting continuing increases in U.S. factory demand and some amount of throughput improvement in ports of entry. Overland-transport challenges and container shortages continue to persist across the global supply chain. Imports will continue to be challenged through the third quarter of 2021,” says Fiore.

The 11 industries reporting growth in imports in May — in the following order — are: Wood Products; Nonmetallic Mineral Products; Furniture & Related Products; Textile Mills; Chemical Products; Machinery; Plastics & Rubber Products; Miscellaneous Manufacturing; Transportation Equipment; Fabricated Metal Products; and Computer & Electronic Products. The three industries reporting a decrease in imports in May are: Paper Products; Primary Metals; and Food, Beverage & Tobacco Products.

Imports % 
Reporting %Higher %Same %Lower Net Index
May 2021 85 20.6 66.8 12.7 +7.9 54.0
Apr 2021 84 16.3 71.9 11.8 +4.5 52.2
Mar 2021 87 19.9 73.6 6.5 +13.4 56.7
Feb 2021 85 21.0 70.3 8.7 +12.3 56.1

 

†The Supplier Deliveries, Customers’ Inventories, Prices, Backlog of Orders, New Export Orders, and Imports indexes do not meet the accepted criteria for seasonal adjustments.

Buying Policy

Average commitment lead time for Capital Expenditures increased in May by one day to 148 days. Average lead time for production materials increased in May by six days to 85 days — the highest figure since ISM® began collecting this data in 1987. Average lead time for Maintenance, Repair and Operating (MRO) Supplies decreased in May by three days to 42 days.

Percent Reporting
Capital 
Expenditures Hand-to-
Mouth 30 Days 60 Days 90 Days 6 Months 1 Year+ Average 
Days
May 2021 21 5 11 12 31 20 148
Apr 2021 21 5 7 16 32 19 147
Mar 2021 23 4 9 17 26 21 145
Feb 2021 23 6 8 15 29 19 142
Percent Reporting
Production 
Materials Hand-to-
Mouth 30 Days 60 Days 90 Days 6 Months 1 Year+ Average 
Days
May 2021 11 23 25 23 13 5 85
Apr 2021 10 25 25 26 10 4 79
Mar 2021 11 27 27 20 12 3 75
Feb 2021 11 31 27 20 9 2 67
Percent Reporting
MRO Supplies Hand-to-
Mouth 30 Days 60 Days 90 Days 6 Months 1 Year+ Average 
Days
May 2021 28 39 18 10 5 0 42
Apr 2021 29 37 16 13 4 1 45
Mar 2021 31 36 19 10 4 0 40
Feb 2021 33 37 16 11 3 0 38

Posted June 1, 2021

Source: Institute for Supply Management

Jill Dumain, CEO Of Bluesign Departs For New Role At SGS Group

ST.GALLEN, Switzerland — June 1, 2021 — Jill Dumain, CEO of sustainability service provider bluesign technologies ag, decided to step down from her role, effective on June 1, 2021.

Dumain became CEO in January of 2017, only the second CEO to hold this position at the company, and has been a strong advocate and supporter of Bluesign since its inception in 2000. As a former Patagonia executive, Dumain was one of the early adopters of the bluesignⓇ SYSTEM and paved the way for Patagonia to be the first brand member. She was also the Chairwoman of Bluesign’s Advisory Board from 2011-2017.

“Splitting time between my home state of California and Switzerland over these past 4 ½ years has worked quite well despite the distance,” Dumain explains. “However, the recent travel difficulties that COVID has presented, my desire to work in a location closer to my family, and the obstacle of working across many time zones, led me to the realization that I must step down from my role as the CEO of Bluesign.  This was an especially difficult decision due to the exciting projects at Bluesign and the amazing team of colleagues that I have had the honor to be a part of,” continued Dumain.

Dumain will be stepping into the role of Global Vice President of Sustainability Solutions for SGS as this role provides her the flexibility to work from California. Her position at SGS is an opportunity to shape the next steps for a leading company in the realm of sustainability and to stay connected to Bluesign.

“Jill’s vision for Bluesign, enhancing its position as a leader in the sustainability space, and building a strong team are just a few of her indelible contributions. We are grateful for her time leading Bluesign and look forward to her joining SGS Group in a larger capacity,” states Charles Ly Wa Hoi, Executive Vice President Connectivity & Products at SGS and Chairman of bluesign technologies ag.

Dumain’s successor, Daniel Rufenacht, has 25 years of experience in corporate sustainability, institutional marketing, and public relations, working both for the public and private sectors. He spent 10 years as Executive Director at textile company, Switcher transforming it from a traditional clothing company into a widely recognized, sustainable brand.   He joins bluesign technologies ag from SGS Group, of which Bluesign is a member; he previously served as Group Vice President, Corporate Communications and Sustainability where he oversaw the sustainability management system, the global sustainability programs, brand and communications, digital and online marketing as well as the annual reporting cycle.

Charles Ly Wa Hoi said: “Daniel’s extensive experience in sustainability will undoubtedly drive the company forward and lead the way in ensuring excellence in sustainable textile manufacturing.

“Bluesign is about finding solutions to both today’s and tomorrow’s social and environmental challenges and we are confident that Daniel’s ambition and commitment to sustainability will continue to bring about the changes needed to reduce the environmental impact of textiles.”

Posted June 1, 2021

Source: bluesign technologies ag

Gaston College Textile Technology Center Advisory Board Meeting

BELMONT, N.C. — June 1, 2021 — The Gaston College Textile Technology Center Advisory Board will meet on Thursday, June 17, 2021. The meeting will be held at 11 a.m. in Room 118 of the Classroom Building on the Gaston College Kimbrell Campus.

The Kimbrell Campus is located at 7220 Wilkinson Boulevard, Belmont, N.C. 28012.

For more information or a copy of the meeting agenda, contact Sandy Hamilton at Gaston College.

Posted June 1, 2021

Source: Gaston College

Unifi Announces Two Key Hires

GREENSBORO, N.C. — June 1, 2021 — Unifi Inc. today announced two new additions to its leadership team. James Cooper Jr. has joined Unifi as the company’s sustainability manager, and Sara Porter has been named brand sales manager of Global Business Development, Nonwovens, Films and Rigid Packaging.

James Cooper

Cooper brings more than 10 years of sustainability experience to the table and will help Unifi further its sustainability and environmental goals through building the first formal sustainability strategy focusing on engagement, disclosure, investment and innovation. He previously served as sustainability manager for Global Brands Group, and holds a Master of Science in Engineering from Clemson University and a Master of Arts in Sustainability from Wake Forest University.

“Unifi is uniquely positioned in that we manufacture products that empower our customers to reduce their environmental impact,” Cooper said. “I’m excited to join an innovative team that is committed to combatting climate change within the textile and recycling sector.”

Sara Porter

Porter brings more than 20 years of experience in the hygiene and packaging industries. She’ll be working with brands on REPREVE® and Premium Value Added products to help tell a sustainability story and promote a sustainable lifestyle for the personal care and packaging industries. In her previous roles, she successfully grew and expanded markets for companies and customers in global markets converting projects from concept to commercialization.

“The time is right to combine performance driven and earth-friendly capabilities to give products not only a sustainability aspect, but performance as well,” Porter said.  “I am excited to weave Unifi’s capabilities and expertise into the personal care and packaging brands.”

“We’re thrilled to have James and Sara as part of our team,” said Jay Hertwig, senior vice president of Commercialization at Unifi. “They will ensure Unifi’s continued growth and future success as we expand our product portfolio, while taking our sustainability targets and goals to the next level. We’re working today for the good of tomorrow, and these new hires are a key part of that mission.”

Posted June 1, 2021

Source: Unifi Inc.

ASTM International Unveils Annual Report, Highlights Collaborative PPE Forum At Business Meeting

W. CONSHOHOCKEN, Pa. — June 1, 2021 — Global standards organization ASTM International held its annual business meeting today. The virtual event celebrated last year’s standards development successes, including efforts to support the fight against COVID-19, and unveiled the 2020 annual report.

At the event, 2021 Board Chair John R. Logar previewed the annual report, entitled “Resilience” (available here). The report highlights the organization’s continued development of standards in the innovative fields of commercial spaceflight, drones, exo technologies, additive manufacturing, and more. It also details ASTM International’s efforts to support global health by offering no-cost access to standards used in the production and testing of personal protective equipment (PPE).

“Thanks to the efforts of our dedicated members, there are now more than 13,000 active standards that work to promote ASTM International’s mission of helping our world work better,” said Logar, senior director of aseptic processing and terminal sterilization at Johnson & Johnson Microbiological Quality and Sterility Assurance. “By providing a best-in-class development infrastructure, we aim to continuously enhance the technical quality of ASTM standards and related content.”

ASTM International’s global collaborative forum for PPE was another highlight from 2020 featured at the business meeting. The forum was created during the height of the COVID-19 pandemic to address challenges facing PPE and accelerating standards development.

“We are proud to have led the charge in offering global access to vital PPE standards to help keep people safe,” said Katharine Morgan, ASTM International president. “Those efforts, coupled with the creation of our PPE forum, will continue to work towards safe, quality, and innovative personal protective equipment.”

At the annual business meeting, Morgan also announced that plans are optimistic to return to face-to-face committee meetings beginning in October 2021.

Posted June 1, 2021

Source: ASTM International

ITMA ASIA + CITME 2020 Exhibitor Preview: Oerlikon – VDMA Presentation

REMSCHEID, Germany — May 31, 2021 — During the VDMA press conference on May 31, 2021, on the occasion of the upcoming ITMA ASIA+ CITME 2021, André Wissenberg, head of marketing, corporate communications and Public Affairs at Oerlikon Polymer Processing Solutions Division, reported on the following topics:

“Dear Ladies and Gentlemen, dear media representatives, dear friends, First of all, I hope that you and your families are all well under the circumstances of the corona pandemic. I am very much looking forward to seeing you all back in good health soon again.

As Chairman of the VDMA’s Trade Fair and Marketing Committee, I would like to start today’s VDMA media conference by expressing my thanks to Boris Abadjieff, Nicolai Strauch, Barbara Clobes and, last but not least, Thomas Waldmann on behalf of all member companies for VDMA’s commitment and engagement to this years ITMA Asia 2021.

What’s new at Oerlikon?

You’ve probably already heard about it. We are continuing to grow!

Oerlikon, a leading provider of surface engineering, polymer processing and additive manufacturing, just recently announced that we have signed an agreement to acquire Italy-headquartered INglass S.p.A. and its innovative hot runner systems technology operating under its market-leading HRSflow business. The strategic acquisition is a significant step in expanding our current manmade fibers busi- ness into the larger polymer processing market.

Looking ahead to ITMA Asia 2021, we are looking forward to welcoming our long-standing customers at our booth in Hall 7, A54, and of course very much hope to make new contacts as well.

Due to the Corona pandemic, we have decided to concentrate with our Chinese sales and service teams on guests primarily from China and greater Asia. However, some experts from Germany, who are working in China at our locations anyway, will be live on site at the booth. Other experts from Germany, India and US will be available online for the entire 5 days of the trade fair and will simply be connected by video conference to the discussion with the visitors on site if there is a need for.

As you all know, our product portfolio ranges from melt to yarn, fibers and nonwovens. We offer sus- tainable, energy-efficient technology solutions for the production of polyester, polypropylene, nylon and other materials. Today, this also includes spinning in-house recycling solutions and biopolymer plant solutions.

In addition to the melt flow, digital data handling plays an increasingly important role today. Here, too, we always have the tailor-made solution for our customers with our software and hardware offerings. Meanwhile have successfully installed over 300 of our digital Plant Operations Solutions worldwide.

Following the ITMA Barcelona, where we presented the new eAFK Evo, our engineers have been working intensively on the development of this texturing machine. At ITMA Asia 2021, we will present the next generation of this automatic texturing solution with up to 25 % energy saving and up to 30 % higher production speed, easy maintenance and best yarn quality. The core of this machine, the so- called EvoCooler, will be shown as an exhibit in combination with digital solutions like AIM4DTY. We will also invite all our guests to our Open House at our Oerlikon plant in Suzhou. Its just one hour drive from the NECC exhibition center.

In the field of high-precision flow control solutions components, we will present two new gear metering pumps developments for the production of aramid and spandex.

You will find out everything else on site and accompanied to this with the start of the trade fair on our website and in the corresponding social media. Thank you very much for your attention.”

Posted May 31, 2021

Source: Oerlikon

Hyosung Welcomes New European And US Marketing Management To Its Global Brand Marketing Team

SEOUL, South Korea — May 18, 2021 — To support its continued business growth and global expansion strategy, Hyosung has hired industry veteran Claire O’Neill as its new European marketing manager, and appointed Hyosung veteran Julia Nam in her new role within the company as U.S. Marketing Manager, effective immediately.

Claire O’Neill

O’Neill, who is based in the United Kingdom, has deep experience in the intimate, swim and global textile markets. She joins Hyosung from The Lycra Co., where she was most recently EMEA Brand Communications Manager, and previously, EMEA Marketing Segment Manager Lingerie, Underwear and Swimwear at Invista. At Hyosung, O’Neill will work with the company’s European marketing team in the promotion of Hyosung’s specialty fibers and fabrics to targeted brand and retail accounts. Additionally O’Neill will manage joint development and promotional programs with key industry partners.

Julia Nam

Nam, whose most recent position with Hyosung was marketing manager, Intimates and Swim, has held many managerial roles with the company based in Seoul over her 19-year career with the company. As U.S. Marketing Manager based in New York City, Nam will identify business opportunities and develop customized textile solutions to help U.S. brands and retailers prosper.

“Claire and Julia bring enormous resources to our team,” said Mike Simko, global marketing director, Hyosung Textiles. “Their respective understanding of the global value chain, brand, retail and consumer needs, will help us further our global position as a major textile solution provider.”

With offices in more than 40 countries, Hyosung is able to locally support and interact with the international supply chain. Together with Hyosung’s Fashion Design Center (FDC) Team who forecast trends and create fabric stories and samples in the context of global trends, the Global Brand Marketing Team supports brands and retailers with design ideas, textile and product development and then helps brands and retailers pull products made with Hyosung specialty fibers through to the consumer.

To provide faster product delivery and reduce its carbon footprint, Hyosung has strategically expanded its manufacturing network to serve clients on each continent since its start in Korea in 1992. In 1999, the company expanded into China, and now has bases in Vietnam for the rest of Asia, India for emerging Asian markets, Brazil for the Americas, and Turkey for Europe. The company recently invested in its Turkey and Brazil plant expansions and has its sights on further manufacturing development in the near future.

Posted May 31, 2021

Source: Hyosung

U.S. Polyester Textured Yarn Producers Applaud U.S. Department Of Commerce’s Affirmative Preliminary Antidumping Duty Determinations On Imports Of Polyester Textured Yarn From Indonesia, Malaysia, Thailand, And Vietnam

WASHINGTON — May 27, 2021 — On May 27, 2021, the U.S. Department of Commerce announced that imports of polyester textured yarn from Indonesia, Malaysia, Thailand, and Vietnam are being unfairly sold below their fair value in the United States at the following margins.

Polyester Textured Yarn Imports from Indonesia
Producer/Exporter Preliminary

Dumping Rate (%)

PT. Asia Pacific Fibers Tbk 9.20
PT Polyfin Canggih 26.07 (AFA)
Mutu Gading 7.45
All Others 8.71
 Polyester Textured Yarn Imports from Malaysia
Producer/Exporter Preliminary

Dumping Rate (%)

Recron (Malaysia) Sdn. Bhd. 17.35
All Others 17.35
Polyester Textured Yarn Imports from Thailand
Producer/Exporter Preliminary

Dumping Rate (%)

Jong Stit Co., Ltd. 56.08
Sunflag Thailand Ltd. 14.80
All Others 14.80
Polyester Textured Yarn Imports from Vietnam
Producer/Exporter Preliminary

Dumping Rate (%)

Century Synthetic Fiber Corporation 2.67
Nam Viet Produce Polyester Co., Ltd. 22.82 (AFA)
Vietnam-wide/All Others Rate 22.82

 

U.S. Customs and Border Protection will now begin collecting antidumping duties (AD) in the amount equal to the dumping cash deposits rates for imports from each country.  Importers will be required to post duty deposits at these AD rates on the date the preliminary determinations are published in the Federal Register (in approximately one week).  These deposits will be collected until the Commerce Department and U.S. International Trade Commission (“USITC”) conclude their investigations later this year. At that time, the duties could change.

Imports of polyester textured yarn from China and India are currently subject to significant double- and triple-digit AD and countervailing duties as a result of prior investigations that concluded in January 2020.

Background

Two major U.S. synthetic yarn producers — Unifi Manufacturing, Inc. and Nan Ya Plastics Corporation, America — filed petitions with the Commerce Department and the USITC in October 2020 alleging that dumped imports of polyester textured yarn from Indonesia, Malaysia, Thailand, and Vietnam are causing material injury to the domestic industry.  The Commerce Department initiated the investigations in November 2020, and the USITC preliminarily determined in December 2020 that imports from the four countries are causing injury to the U.S. domestic industry.

The product covered by the investigation, polyester textured yarn, is synthetic multifilament yarn that is manufactured from polyester (polyethylene terephthalate). Polyester textured yarn is produced through a texturing process, which imparts special properties to the filaments of the yarn, including stretch, bulk, strength, moisture absorption, insulation, and the appearance of a natural fiber.  This scope includes all forms of polyester textured yarn, regardless of surface texture or appearance, yarn density and thickness (as measured in denier), number of filaments, number of plies, finish (luster), cross section, color, dye method, texturing method, or packing method (such as spindles, tubes, or beams).

The merchandise subject to this investigation is properly classified under subheadings 5402.33.3000 and 5402.33.6000 of the Harmonized Tariff Schedule of the United States (HTSUS).  Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise is dispositive.

The petitioning companies are represented by Kelley Drye & Warren LLP.

Posted May 28, 2021

Source: Kelley Drye & Warren LLP

Lenzing Reaches A New Milestone On The Path To Climate-Neutral Production

LENZING, Austria — May 27, 2021 — Lenzing Group, a provider of sustainably produced specialty fibers for the global textile and nonwoven industries, is continuing to make great strides toward achieving carbon neutrality across the group. The successful completion and commissioning of an air purification and sulfur recovery plant at the Lenzing facility marks another milestone in the group’s ambitious strategy. Lenzing has invested some EUR 40 mn in this project since construction began in 2019.

Using state-of-the-art technology, the plant will enable carbon emissions to be reduced by 15,000 metric tons at the Lenzing facility. This will also make the group more self-sufficient in securing vital raw materials for processing, which will bolster the site’s competitive standing in terms of sustainability.

“As a result of this investment, Lenzing has made further progress towards implementing its climate targets, while achieving much greater autonomy with regard to one of its core raw materials”, says Christian Skilich, member of the Managing Board at Lenzing Group.

In 2019, Lenzing set the strategic target of halving its group-wide greenhouse gas emissions per ton of product by 2030. Its goal for 2050 is to achieve climate neutrality.

Posted May 28, 2021

Source: Lenzing Group

Up To Date Laundry Recertified Hygienically Clean Healthcare

ALEXANDRIA, VA. — May 28, 2021 — Up To Date Laundry, Baltimore, has again achieved Hygienically Clean (HC) Healthcare certification, reflecting its commitment to best management practices (BMPs) in laundering as verified by on-site inspection and its capability to produce hygienically clean textiles as quantified by ongoing microbial testing.

Up-To-Date was first certified in 2014. Recertification confirms the organization’s continuing dedication to infection prevention, compliance with recognized industry standards and processing healthcare textiles using BMPs as described in its quality assurance documentation, a focal point for Hygienically Clean inspectors’ evaluation. The independent, third-party inspection must also confirm essential evidence that:

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

To achieve certification initially, laundries pass three rounds of outcome-based microbial testing, indicating that their processes are producing Hygienically Clean Healthcare textiles and zero presence of yeast, mold and harmful bacteria. They also must pass a facility inspection. To maintain their certification, they must pass quarterly testing to ensure that as laundry conditions change, such as water quality, textile fabric composition and wash chemistry, laundered product quality is consistently maintained. Re-inspection occurs every two to three years.

This process eliminates subjectivity by focusing on outcomes and results that verify textiles cleaned in these facilities meet appropriate hygienically clean standards and BMPs for hospitals, surgery centers, medical offices, nursing homes and other medical facilities.

Hygienically Clean Healthcare certification acknowledges laundries’ effectiveness in protecting healthcare operations by verifying quality control procedures in linen, uniform and facility services operations related to the handling of textiles containing blood and other potentially infectious materials.

Certified laundries use processes, chemicals and BMPs acknowledged by the federal Centers for Disease Control and Prevention (CDC), Centers for Medicare and Medicaid Services, Association for the Advancement of Medical Instrumentation, American National Standards Institute and others. Introduced in 2012, Hygienically Clean Healthcare brought to North America the international cleanliness standards for healthcare linens and garments used worldwide by the Certification Association for Professional Textile Services and the European Committee for Standardization.

Objective experts in epidemiology, infection control, nursing and other healthcare professions work with Hygienically Clean launderers to ensure the certification continues to enforce the highest standards for producing clean healthcare textiles.

“Congratulations to Up To Date Laundry on their recertification,” said Joseph Ricci, TRSA president and CEO. “This achievement proves their ongoing commitment to infection prevention and that their laundry facilities take every step possible to prevent human illness.”

Posted May 28, 2021

Source: TRSA

Sponsors