Interpreting the Signals |
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As an engineer, it’s important to stay
informed when it comes to new technology, such as the latest version of
SolidWorks, 2004. Understanding how to utilize new tools that are
available and directly apply them to your business can yield some nice,
incremental gains in productivity. Interpreting industry trends can also give an engineering firm valuable insight into creating viable business strategies. For example, data released on August 1, 2003 indicates that factory orders increased in June in the largest gain since March. “Factory orders rose 1.7 percent in June to a seasonally adjusted $326.0 billion after an increase of just 0.3 percent a month earlier, the Commerce Department said. Orders for non-durable goods — items expected to last less than three years — gained 0.7 percent, while orders for expensive durable items, such as cars and refrigerators, rose 2.6 percent, their biggest gain since July of last year.” Reuters News Service In addition, The Institute for Supply Management (ISM) said on August 1, 2003, its manufacturing index pushed up to 51.8 in July from 49.8 in June, signaling factory-sector growth. A number greater than 50 indicates expansion in purchasing activities. You can find out more at the ISM website at http://www.ism.ws What can an engineering or manufacturing firm do with this data? Certainly it can serve as a benchmark for an individual company’s performance as to whether results are in line with the balance of the industry. Also, staffing and purchasing decisions can be made with a higher level of confidence with real data to back them up. So, the other question is “How do we turn results like this into a truly sustainable recovery for manufacturing?” With inventories lean, an increase in demand should translate quickly into production work. One thing that everyone can do at this point is stay informed and make sure you are equipped to deal with new opportunities when they do arrive! |