According to the latest figures from the Institute for Supply Management, the manufacturing sector of the economy experienced strong growth in February, with the institute's composite index, the PMI, rising to 61.4%, a level last seen in May of 2004 and up from January's 60.8%. (A PMI above 42.5% over time indicates overall economic growth.)
The underlying factors contributing to the rapid pace of growth bode well for the logistics
business as well. New orders are on the rise, while inventories
are shrinking, and the ISM reports that its Customers' Inventories Index indicates that supply chain
inventories will need continuing replenishment.
In addition, employment in manufacturing continues to rise, with the ISM's Employment Index above 60% for only the third time in the past decade.
While the ISM says that a pace of growth this fast cannot be sustained in the long run and will of necessity slow down, the fact that this is the 21st consecutive month of growth as measured by the PMI bodes well for future employment prospects in both the manufacturing sector and the industries that keep the sector humming, logistics chief among them.
The ISM's indices also suggest growth in output greater than government statistics so far have indicated. "The past relationship between the PMI and the overall economy indicates that the average PMI for January and February (61.1 percent) corresponds to a 6.5 percent increase in real gross domestic product (GDP). In addition, if the PMI for February (61.4 percent) is annualized, it corresponds to a 6.6 percent increase in real GDP annually," said Norbert Ore, chair of the ISM Manufacturing Business Survey Committee.
If you've been sitting on the sidelines waiting for conditions to improve, perhaps it's time for you to dust off your resume and restart your job search. LogisticsJobSite.com
is the logical place to start.
By Sandy Smith
Sandy Smith is a veteran freelance writer, editor and public relations professional who lives in Philadelphia. Besides blogging for LogisticsJobSite.com, he has written for numerous publications and websites, would be happy to do your resume, and is himself actively seeking career opportunities on Nexxt. Check out his LinkedIn profile.