2005 projections are positive as 75% of nation's purchasing executives expect revenues to exceed those of 2004. A 7.8% net increase in overall revenues for the year compared to an increase of 8.3% for 2004. Purchasing executives expect capital expenditures to increase only 1.6% in 2005, compared to the 15.1% increase reported for 2004, which may have been driven by tax credits. Survey respondents also forecast that they will increase their purchased inventory to sales ratio this year.

Manufacturers anticipate that employment in the sector will grow by 1.6%, while labor and benefits costs are expected to increase an average of 3.4%. Manufacturing purchasers are predicting growth in exports and imports. They also expect the U.S. dollar to strengthen somewhat against currencies of major trading partners.

Additionally, they predict the prices they pay will increase 4.3% during the first four months of the year, and will increase an additional 0.1% for the remainder of 2005. Respondents' major concerns are: prices and inflation; energy price increases; weak economy; effects of war and geopolitical concerns; and labor, benefits and healthcare costs, including labor shortages.

Source: ISM Semiannual Forecast, December 2004, Institute for Supply Management

These are a series of articles on Mfg in US - we are optimistic about the future of mfg despite all the negatives that we hear in the common media. Manufacturing in the U.S. is critical to us and we love to hear from you - how can we do better and how can we help you…call 1-866-buyCASTINGS and ask for Bob, Neil, or Lee.