ISM manufacturing index revised downward, but still signifies growth in industry

01.31.2012


The Institute for Supply Management’s December factory index was revised downward but still indicates that the sector is expanding, according to revisions announced on January 31.
The Institute for Supply Management’s December factory index was revised downward but still indicates that the sector is expanding, according to revisions announced on January 31.

The Institute for Supply Management’s December factory index was revised downward but still indicates that the sector is expanding, according to revisions announced on January 31. Growth in manufacturing could result in the creation of manufacturing jobs coming from both hiring managers and staffing firms.

The month's reading was lowered to 53.1 from 53.9, and November was revised to 52.2 from 52.7, according to Bloomberg. Any reading above 50 is interpreted as meaning that the sector is growing.

The evidence of this expansion is present in South Carolina, where a China-based company plans to invest $70 million into a new facility that the company expects will generate 100 jobs, according to a statement released by the South Carolina Department of Commerce on January 31.

"We celebrate [the manufacturer's] decision to establish its new manufacturing plant in South Carolina and create 100 new jobs. This announcement is another big win for one of our state’s rural counties. We will continue to build on our economic development successes and foster job creation throughout our state," Governor Nikki Haley said in the statement.

The new facility will be a greenfield plant designed to manufacture plastic film similar to the type used in food packaging. The company stated that the plant should be ready for manufacturing by the first quarter of 2014, and that a machinery upgrade will allow the facility to create the film at a very fast speed.

"Laurens County offered us an excellent business environment and ready and available workforce. We appreciate all the support we’ve received from state and local officials, and we plan to create as many job opportunities as possible for the state," Fang Wang, general manager of the film manufacturer, said in the statement.

The manufacturing recovery is also evident in Texas, where a global manufacturer plans on expanding a manufacturing plant used to produce parts for sport utility vehicles, according to The Associated Press. The company expects that the expansion plans will create 180 jobs in the Dallas-Fort Worth area.

The global manufacturer announced on January 31 that it will invest $200 million into an addition to the plant that will be used to produce the car components, the media outlet reports. The firm stated that the facility should begin production in 2013. Less than one year before this announcement, the company stated that it would invest $331 million into upgrading the Texas facility. 

These expansion plans should create substantial manufacturing jobs.