TEMPE, Ariz. – Despite ongoing labor shortage and supply chain issues, the economy, including the furniture and related products market segment, has continued to grow, according to the Manufacturing ISM Report On Business. .
According to the report from the Institute for Supply Management, economic activity in the manufacturing sector increased in January, with the overall economy posting a 20th consecutive month of growth.
The report was released on February 1, 2022 by Timothy R. Fiore, CPSM, CPM, Chairman of the ISM Manufacturing Business Survey Committee.
“The U.S. manufacturing sector remains in a demand-driven and supply chain environment, but January was the third consecutive month with signs of improved labor resources and supplier delivery performance” , said Fiore. materials, product transportation difficulties and lack of direct labor in factories due to COVID-19 omicron variant.
As one respondent from the furniture and related products industry put it: “Bookings continue to increase as we continue to face labor shortages and supply chain issues.
The 14 manufacturing industries that recorded growth in January—in the following order—are: Clothing, Leather and Allied Products; Furniture and related products; miscellaneous manufacturing; non-metallic mineral products; Machinery; Electrical equipment, devices and components; Food, beverages and tobacco products; transportation equipment; primary metals; Fabricated metal products; Computer and electronic products; Chemical products; petroleum and coal products; and plastic and rubber products. The only industry that reported a decline in January compared to December was paper products.
Furniture recorded growth in several categories, including new orders, production, in which it led all industries, employment, supplier shipments, rising inventories, order books and imports. See the Crafting Overview table below for more information.
On the negative side, the furniture and related products segment was one of 17 industries paying higher prices for raw materials.
According to the report, the January manufacturing PMI recorded 57.6%, down 1.2 percentage points from December’s seasonally adjusted reading of 58.8%. This figure indicates an expansion of the overall economy for the 20th consecutive month after a contraction in April and May 2020.
“Manufacturing performed well for the 20th consecutive month, with demand and consumption growing month-on-month. Meeting demand remains a challenge, due to hiring difficulties and labor turnover at all levels. Panelist feedback suggests month-over-month improvement in hiring, offset by replacement needed to cope with staff turnover at a higher rate, supplier performance and improvements in the transportation sector says Fiore.