It had been a good couple of years for manufacturing as the industry roared out of the pandemic with 28 straight months of increases. March saw a dip that’s been showing for the past few months, though, with the March Manufacturing PMI settling in at 46.3%. The PMI hasn’t been over 50 since October.
This suggests that manufacturing may be in for a rough year in 2023.
Factors affecting manufacturing
Why is manufacturing facing a slowdown? To some extent, there may be correction from the growth that brought us out of the crises of the pandemic. Here are some other factors:
- We may be tired of the ongoing COVID-19 pandemic, but we can’t really ignore it yet. It has continued to disrupt supply chains and weigh on demand.
- The war in Ukraine has caused energy prices to rise and has disrupted global trade.
- The Federal Reserve’s decision to raise interest rates, which is intended to combat inflation, could also slow economic growth. The dollar has also weakened recently.
- The ongoing labor shortage has made it difficult for businesses to find workers and has pushed up wages. Increasing wages can be a good thing, but it can also cut into profits and limit capital investments.
If your company is seeing a slowdown, you might choose to repair or remanufacture your motion control systems instead of investing in new systems right now. We specialize in Rexroth electric industrial motion control systems. We can assist with legacy machinery and newer components as well. Let our team of experts get your facility up and running and keep things going smoothly. Call for immediate assistance.
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