Author - fluentdesigns

manufacturers’-m&a-sets-stage-for-sweeping-change

Manufacturers’ M&A sets stage for sweeping change

Media - KPMG Global

In 2021, industrial and manufacturing M&A activity reached record highs—and trends point to a healthy deal market in 2022.

Hectic M&A activity in the industrial and manufacturing (IM) sector is both a catalyst for, and a response to, massive change. In 2021, IM companies doubled down on the transition to new digitally-enabled products and business models—everything from robotics to electric vehicles. The rationale for deal making has changed: from adding scale or gaining new customers, to finding new sources of growth with new kinds of products and business models.

M&A activity in IM soared to a new record of 10,173 deals worth $786 billion in 2021, 83 percent higher in value than in 2020 and 73 percent more than 2019. Deal volume jumped 41 percent in 2021, compared to 2020, and average value was 30 percent higher. (See the charts below for more)

Looking ahead, we believe these trends will drive healthy IM deal activity in 2022:

  • Supply chain disruptions are expected to drive a surge in M&A for component suppliers
  • The electrification of cars will have a profound effect on automotive suppliers—many may have to acquire or sell assets to survive
  • President Biden’s November 2021 infrastructure bill will lift industries involved in roads, bridges, tunnels, and other infrastructure sectors
  • Portfolio optimizations will lead to further restructuring among manufacturers, especially for diversified industrials
  • Entrepreneurs are favoring SPACs as a fast way to go public in new industries (e.g. commercial space, electric vehicles, electric vertical take-off and landing aircraft)

Acquisitions, Reports

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how-b2b-audiences-engage-with-business-content-online

How B2B Audiences Engage With Business Content Online

People frequently read business content online to learn about industry trends or inform their buying decisions. Businesses that invest in high-quality content and SEO services can engage potential customers.

An overwhelming 91% of business-to-business (B2B) marketers use content marketing, according to the Content Marketing Institute. 

Businesses produce content online to engage potential customers, who increasingly read and refer to online content as part of their purchasing process.

Clutch surveyed more than 380 employees who have read business content online in the past week. In this report, we refer to our respondents as “B2B audiences.”

The survey found that most B2B audiences frequently encounter business content through search engines and social media.

In addition, B2B audiences read business content to stay informed about industry trends. Depending on the topic and type of content, however, many look to online content to research a company and make decisions about whether to purchase its products or services.

Overall, our findings underscore the importance of strong content marketing and SEO services for businesses that want to engage customers who are interested in business-related content.

Businesses can use this report to understand how B2B audiences interact with business content online. With this understanding, they can better design their content and SEO strategies to engage potential customers at opportune moments.

Findings

  • B2B audiences most recently consume content about technology (45%), ahead of content about small businesses (24%) or workplace/personnel (21%).
  • One-third (33%) of B2B audiences read blogs or articles about business-related topics. One-fourth (25%) read reviews most often.
  • B2B audiences most frequently encounter business-related content through search engines (87%) and social media (85%).  
  • Audiences consume business content to stay informed about business and industry trends (45%) the most. They also consume B2B content to research a company’s products (19%) and decide about whether to purchase a company’s products or services (20%).
  • An overwhelming majority of B2B audiences (88%) consume business-related content online at least once a week.

Technology Is the Most Common Online Content Topic for B2B Audiences

The most recent online business content that B2B audiences read was most likely about technology.

The number of respondents who read business content online about technology (45%) nearly doubles the number who read content about small businesses (24%).

Popular online business content topics for B2B audiences

Fewer read content on workplace/personnel (20%) and marketing (12%) topics.

Technology impacts most B2B audiences, regardless of their job or industry, said Brian Carter, CEO of the Brian Carter Group, a digital marketing agency.

“Technology is more relevant as a topic than small business — everybody needs technology,” Carter said. “When you write stuff that’s more relevant to everybody, you’re going to get a wider audience and more interest.”

Content about small businesses, workplace, or marketing, on the other hand, may only be relevant to those who work in or are familiar with those industry segments.

B2B Audiences Mainly Consume Blogs and Articles About Business Topics

Business audiences mainly consume online content in traditional article format. However, they also read content specifically formatted to help them research companies and determine the value of their products.  

B2B audiences are most likely to consume online business-related content in a blog or article (33%).

top 5 online content formats for b2b audiences

The abundance of blogs and articles online is one reason they are so popular among B2B audiences. According to TrackMaven, the number of blogs companies published increased over 800% from 2011-2016. This high number of blogs makes it easy for audiences to find their content of interest.

B2B audiences also seek online content that informs them about a specific company’s products or services through reviews (25%) and product descriptions (16%).

Businesses can respond to diverse B2B audience preferences by creating a broad content portfolio. Mike Theodore, digital marketing manager for Digital Third Coast, an internet marketing and SEO company in Chicago, said a diversity of content can accomplish a broad set of goals for a business.

“We produce a wide range of content, whether it be social media or content for our own website,” Theodore said. “The goal is to drive organic traffic to our company and service offerings, to be seen and heard as industry leaders, and to build a level of credibility with prospective employees, clients, and strategic partners.”

If your business produces content in the formats B2B audiences favor, you have the ability to engage with and make a positive impression on multiple target audience groups, including clients, employees, and industry peers. 

B2B Audiences Encounter Business Content Through Search Engines and Social Media

B2B audiences find business-related content using the 2 of the 3 most popular websites in the world, Google and Facebook.

An overwhelming majority of B2B audiences frequently encounter business content through search engines (87%) and social media (85%).

how b2b audiences encounter business content online

The amount of people who encounter content through search and social media supports existing industry research and illustrates how important it is for businesses to have and maintain a visible brand presence on each channel. 

Since Google and Facebook alone influence approximately three-fourths of internet traffic, achieving visibility on these channels provides an opportunity for brand exposure.

Audiences With Higher Purchasing Intent Encounter Content Through Company Websites 

B2B content readers also commonly depend on company websites to read business content. Three-fourths (75%) frequently engage with business content on company websites. 

75% of b2b audiences frequently encounter business content online through a company's website

This group tends to be more intent on purchasing a company’s products or services, Carter said. B2B buyers today do not blindly purchase products or services. Instead, they read content about products or services before making a purchasing decision.

“Can you imagine B2B purchasers not reading a company’s website at some point before buying from it?” Carter said.

This finding demonstrates that B2B search audiences are willing to engage with content on company websites.

B2B audiences, however, need to be able to find a company’s content in order to engage with it. To do this, companies need to invest in SEO.

SEO Services Help Businesses Engage B2B Audiences

To drive B2B audiences to your business’s content — whether through search, social media, or your company’s website — your company needs strong SEO services.

This is particularly important given the role of search engines in the B2B buying process: 89% of B2B buyers begin their purchasing process through search, according to Google’s own metrics.

This data matches our finding that 87% of B2B audiences encounter business content through search engines and emphasizes the importance of having your site appear for search terms that relate to your business. 

Comprehensive and effective SEO increases the chances that readers encounter your site when they search terms relevant to your business or industry.

To accomplish this, one SEO service that your business can invest in is producing high-quality content that addresses your target customers’ concerns and needs. 

Kim Moutsos, vice president of editorial for the Content Marketing Institute, a content marketing strategy and research firm, said this process emphasizes not only optimizing content for keywords relevant to your target audience, but optimizing for your audience itself. 

“SEO remains an important way for B2B audiences to find content,” Moutsos said. “Don’t forget, though, that it involves optimizing content not just for search engines, but also for the people behind the queries.”

“Don’t forget that SEO involves optimizing content not just for search engines, but also for the people behind the queries.” – Kim Moutsos, Content Marketing Institute. 

If your company can effectively optimize for its audience by producing high-quality content that speaks directly to their concerns, you can create long-term value for your company by sparking a positive SEO feedback cycle.

Specifically, high-quality content attracts readers to your site, keeps them on your site and makes them more likely to share your content. This, in turn, improves your SEO, which makes it more likely that searchers encounter your content when they search terms relevant to your business. 

Audiences Read Business Content Online to Study Industry Trends, Research Companies, and Make Purchasing Decisions

B2B audiences primarily read online business content to stay informed.

Nearly half (45%) say their primary reason for reading business-related content online is to stay informed about business and industry trends, more than twice as much as any other reason.

why b2b audiences read business content online

The remaining respondents read business content online with more purchasing intent: to further research products or services that can help their company (19%) or to decide whether to purchase products or services from a company (20%).

B2B audiences’ reasons for consuming business content online reflects their stage in the conversion funnel.

At each stage of the funnel – awareness, interest, decision, and action – B2B audiences consume the type of content that corresponds to their level of buying intent. 

Conversion funnel

Source

Businesses that want to engage B2B audiences through producing content can use the conversion funnel to identify “buyer personas” to target at each stage. Theodore, for example, uses personas associated with each stage of the conversion funnel to inform and design Digital Third Coast’s content strategy. 

“We’re very conscious of the content we produce for our clients based on their different stages of purchasing. We’re always conscious to write to the best ‘persona.'”

Since each stage represents different buyer personas, to engage each, your business needs to produce different forms of content.

B2B Audiences in the “Awareness” Stage Read Blogs and Articles

B2B audiences who read content to either stay informed about business/industry trends (45%) or to learn more about how to approach a business challenge (16%) likely fit into the “awareness” stage of the conversion funnel.

Customers at this stage are interested in learning about an industry or general service, rather than the providers of that service.

Given their general level of interest, this group is more likely to consume the most general type of content: blogs and articles. Over 40% of respondents in this stage read blogs or articles about business content the most.

42% of b2b audiences read blogs or articles about business topics the most when they are in the awareness stage of the conversion funnel

Businesses that want to engage customers at this stage need to produce blog content that discusses general business or industry topics.

Businesses can use this type of content for brand awareness among their target customers. Even if this sort of content is not solely focused on your products or services, it at least provides an opportunity to introduce your company and products to potential customers, said Lisa Shepherd, owner of The Mezzanine Group, a B2B marketing company based in Toronto.

“If content marketers can produce content that appears as a general business or industry trend piece, they have a much better shot of introducing their product, service or company to new prospects,” Shepherd said.

Even if it doesn’t guarantee conversion, introducing potential customers to your company and products is incredibly significant: How can they purchase your products if they don’t know who you are or what products you provide?

B2B Audiences in the “Interest” Stage Read Product Descriptions

B2B audiences’ content consumption habits change as they advance through the conversion funnel.

For example, those who read business content online to research a company’s products or services (19%) likely fit in the “interest” stage of the conversion funnel.

This group may have interest in your company but still wants to learn more about it before investing or making any sort of commitment.

As a result, they read product descriptions (28%) more than reviews (27%) and blogs or articles (18%).

B2B Audiences in the “Decision” and “Action” Stages Favor Reviews

B2B audiences who read content online to make a decision about whether to purchase products/services (20%) are at the “bottom” of the conversion funnel: the “decision” and “action” stages.

These individuals are close to making a final decision on whether their company needs a certain type of product or service and if they do, which provider is the best fit.

To find the best partner for their firms, this group reads reviews (32%) the most to compare service providers and determine which aligns the best with their needs, goals, and budget. 

B2B Audiences Are Frequent Content Consumers

B2B audiences read business content online on a regular basis. Nearly all (88%) read business content at least once a week.

88% of b2b audiences engage with business content online at least once a week

Theodore thinks that this number is possibly underreported. Because of the amount of content online, he thinks that audiences don’t always realize when they encounter about business or that is produced by a business.

“I think people are consuming so much content, whether it’s in their social or business lives, that they fail to realize the volume and the number of different sources,” Theodore said. “It’s almost impossible for them to keep track of all that.”

The frequency of which B2B audiences consume content also underscores how important it is for businesses to have strong SEO: Over 90% of audiences who consume content at least once a day encounter it through search engines.

Investing in SEO increases the chances that you are visible to this broad swath of business readers, which expands the potential customer base for B2B companies.

SEO can be especially impactful for audiences who consume content less often, who are more selective about the B2B content they read.

B2B audiences who consume business content less than once per week are the most likely to read product descriptions (24%) and reviews (31%). Because this group is likely toward the bottom of the conversion funnel, engaging them through your content can potentially lead to acquiring new customers. 

B2B Audiences Engage With Business Content Online to Fit Their Purchasing Intent

B2B audiences read online business content that is easy to encounter and applies to their place in the conversion funnel.

Nearly twice as many B2B audiences consumed business content about technology than any other topic in the past week.

B2B audiences mostly read blogs or articles about business content to stay informed about industry trends. However, many also read product descriptions and reviews as part of their buying process.

Nearly all readers of online B2B content encounter it at least once per week, most frequently on search engines and social media. Many also encounter content on company websites.

B2B audiences’ content consumption habits make it clear that businesses need to produce high-quality content and invest in SEO in order to engage business audiences, which can ultimately lead to a sale.

Read more...
in-the-news-with-fastener-news-desk-the-week-of-march-21st,-2022

IN THE NEWS with Fastener News Desk the Week of March 21st, 2022

I’m Lisa Kleinhandler, Editor-in-Chief at Fastener News Desk

It’s IN THE NEWS the Week of March 21st, 2022

WATCH NOW! FASTENERTV YOUTUBE CHANNEL: (8MIN-15SEC)


This week’s episode of in the news is sponsored by Product Genius Technology. Enhance your website customer experience with the new view for industrial product search. Turn your sales team into product genius’s when selling complex product categories online.


In Fastener News…

Nucor Named General Motors Supplier of the Year for the Fourth Year in a Row

Nucor Corporation (NYSE: NUE) was recognized as a General Motors (GM) Supplier of the Year for the fourth straight year. In addition, Nucor received the GM Overdrive Award for their partnership with GM on Econiq™, the world’s first line of net-zero carbon steel products at scale. Nucor remains the only electric arc furnace steelmaker to receive the Supplier of the Year Award. Read more:


 In Acquisition news from abroad…

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Fabory has signed an agreement to acquire Fastto of the Netherlands. Fastto is a recognized fastener specialist with a relevant product portfolio and strong customer advocacy. The Fabory-Fastto combination shows a strong strategic fit between two fastener specialists. Deep fastener expertise is coupled with a differentiated service level and application know-how.

Francisco Terol, CEO Fabory said “Fabory is impressed by the customer intimacy Fastto is known for. The team’s enthusiasm and customer focus is inspiring. It is easy to understand how Fastto has managed to build longstanding customer relationships. We are proud to welcome Fastto to Fabory,”. Read More:

Bufab Logo

Bufab has entered into an agreement to acquire all outstanding shares in the Danish company Pajo Bolte AS (“Pajo Bolte”), with annual sales of DKK 140 million. Read More:


In eCommerce News…

Find out how after 75 years fastener distributor Fabory is proving that they are ‘Masters in #Fasteners & digital experience too! FND spoke with Richard Rijsterborgh, Sr. E-commerce Manager Read interview now: Featured at Fastener News Desk.


The past two years have certainly been a digital wake-up call for distributors and manufacturers. B2B buyers’ behaviors have gone full on digital! Digitizing data and product information is key to the beginnings of your business’s digital transformation. Data is the foundation to your company’s digital growth.

Is your product data ready for eCommerce, a great user experience, investors, or marketplaces?

Product Genius Technology services include, data cleaning and preparation, consulting, and strategizing. Contact ProductGeniusTechnology.com or call 1-800-fasteners to find out how to get started today.


The stories featured in this week’s episode of IN THE NEWS can be found at Fastener News Desk or in our Twitter feed @FastenerNews and on LinkedIn in the Fastener News Group!


In Association News…

There are lots of scholarship opportunities through industry associations:

The North Coast Fastener Association Scholarship Application for 2022 is now available for current NCFA Members. View application and review eligibility requirements go to NCFAonline.com

Women in the Fastener Industry announced that The Margaret Davis Scholarship application is now open! WIFI honors the memory of Margaret Davis of ISSCO, INC & BTM Manufacturing with a scholarship to Fastener Fair USA in Detroit, MI May 17- 19th. Scholarship awardee will receive travel, accommodations, and entrance to the expo. Deadline for applications is April 1st, 2022. Apply now for a scholarship at 👉https://fastenerwomen.com/scholarships

The Gilchrist Foundation Scholarship application is open. The scholarship was established to provide financial assistance for college education for persons involved in the fasteners industry (or children of those employed in this industry). Robbie and Gina Gilchrist’s wishes are to give something back to an industry that provided so much to them. This perpetuating scholarship is the means by which to reward those who have the excitement and enthusiasm for the fastener industry experienced by Robbie and Gina. The Gilchrist Foundation will award one or more scholarships annually. For more info go to: http://www.gilchristfoundation.com/

For more scholarship opportunities check under the resources tab at FastenerNewsDesk.com


Are you a Young Fastener Professionals! Do you work at a fastener distribution company, manufacturer or industry provider and want to make a greater impact in the industry? Well, the Young Fastener Professionals organization is looking for young, motivated, self-starters, and team builders to help grow their organization on a national level.

Young Fastener Professionals (YFP) is committed to providing educational and networking opportunities for ambitious young professionals desiring professional growth within the fastener industry. They empower, advocate for, and provide opportunities for education and networking for young fastener professionals.

For more information contact the YFP at nfda-fasteners.org


Coming up next week…

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SAVE THE DATE🗓️ for a NEW class from the Fastener Training Institute and the Industrial Fastener Institute:  Basic Geometric Dimensioning & Tolerancing for Fasteners. Learn about datums, bonus tolerance, and the 14 different controlled geometric characteristics with real-world examples. 

In-Person Training | March 28-29, 2022 | Independence, OH

Details & registration ➡️ https://fastenertrainingevents.com/basic-geometric.htm


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The New England Fastener #Distributors Association Bowling Party!

March 31st from 6-9:00P

To register for the event Go to: NEFDA.com


2022 marks the 40th anniversary of the IFE Fastener Hall of Fame, which recognizes professionals who have made significant and enduring contributions to the industrial fastener industry on a national or global scale. As part of the annual International Fastener Expo, the Hall of Fame inductees are selected from names submitted by people like you. Now is the time to nominate someone you think has made a difference in the fastener industry, through leadership, innovation, or education. Nominate online at FastenerShows.com. Deadline to submit nominations is July 30th.


If you would like to share your company’s events or news, or sponsor an upcoming episode of IN THE NEWS, contact me lisa@fastenernewsdesk.com.

Thanks for tuning in to this week’s episode of IN THE NEWS with Fastener News Desk.

Until next week, be well, stay safe and Keep it Fastenating.


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in-the-news-with-fastener-news-desk-the-week-of-march-14th,-2022

IN THE NEWS with Fastener News Desk the Week of March 14th, 2022

It’s… IN THE NEWS with Fastener News Desk the Week of March 14th, 2022

WATCH NOW! FASTENERTV YOUTUBE CHANNEL: (7MIN-56SEC)

IN WORLD NEWS from RUETERS: The EU to ban steel imports from Russia. The measures amount to a fourth set of sanctions against Russia over its invasion last month of Ukraine, coordinated with the United States and other G7 allies.  Read More:


In Fastener Industry News…

The Industrial Fastener Institute welcomed nearly 200 members to their Annual Spring meeting in Fort Lauderdale yesterday.


The Pac-West Spring Conference & Tabletop Show | begins tomorrow, March 16-18TH. For more info and registration: pac-west.org


Würth Revcar Fasteners Leases Former Home Shopping Network Building in Roanoke, VA. The building will be the single largest Würth facility in North America and serve as the headquarters for Würth Revcar #Fasteners. Chapman Revercomb, Managing Director of Wurth Revcar Fasteners said “We are excited about the opportunity for a world class headquarters that will allow us to attract, retain, and develop top talent in the same location as a highly efficient, large scale distribution facility. “We expect to add 50 office and warehousing positions as we ramp up operations in the new facility,” Read More: 


In Acquisition news….

Threadline has Acquired Fellow Fastener Fab Supplier Atlantic Bolt. The merger of the two companies will increase production capacity and enable them to compete at greater scale. The merger of the two Charlotte-based companies brings together teams with a combined 74 years of experience in serving contractors, departments of transportation, and OEMs. Threadline was founded in 1984, and Atlantic, launched in 1987, they have been known across the Carolinas and Southeast as organizations built on responsive, reliable service, quality, and steady supply of anchors, bolts, studs, hardware, and other steel-fabricated products.


NSI Industries, LLC, a provider of electrical product solutions for more than 45 years, has announced that it has acquired Metallics, a Bristol, Conn.-based manufacturer and supplier of fasteners and related supplies, as part of its commitment to connecting distributors to the products, services, and technologies they need to advance. The acquisition also allows NSI to further key inroads into the electrical, HVAC, and building technologies markets. In service of their customers and in coordination with its affiliate, Avanti Screw, Inc., Metallics has the ability to design and produce new and innovative fasteners in their central Connecticut plant.


The stories featured in this week’s episode of IN THE NEWS can be found at Fastener News Desk or in our Twitter feed @FastenerNews and on LinkedIn in the Fastener News Group!


In eCommerce News:

You won’t want to miss FND’s recent interview with Fabory’s, Richard Rijsterborgh, Sr. E-commerce Manager about his experience in launching their new ecommerce webshop, B2C buying behaviors that translate to B2B user experiences, getting the data right, fasteners and digital transformation. Find out how this 75-year-old fastener distribution company is setting the benchmark for digital experience.

Read the full interview at Fastener News Desk.

Read more: https://fastenernewsdesk.com/30912/fabory-masters-in-fasteners-and-digital-experience/


The past two years have certainly been a digital wake-up call for distributors and manufacturers. B2B buyers’ behaviors have gone full on digital! Digitizing data and product information is key to the beginnings of your business’s digital transformation. Data is the foundation to your company’s digital growth.

Is your product data ready for eCommerce, a great user experience, investors, or marketplaces?

Product Genius Technology services include, consulting, strategizing, data cleaning and preparation. Contact ProductGeniusTechnology.com or call 1-800-fasteners to find out how to get started today.


Women in the Fastener Industry announced that The Margaret Davis Scholarship application is now open! WIFI honors the memory of Margaret Davis of ISSCO, INC & BTM Manufacturing with a scholarship to Fastener Fair USA in Detroit, MI May 17- 19th. Scholarship awardee will receive travel, accommodations, and entrance to the expo. The recipient will be required to work at the WIFI show booth. Deadline for applications is April 1st, 2022.

Apply now for a scholarship at 👉https://fastenerwomen.com/scholarships


Attention:  Young Fastener Professionals! Do you work at a fastener distribution company, manufacturer or industry provider and want to make a greater impact in the industry? Well, the Young Fastener Professionals organization is looking for young, motivated, self-starters, and team builders to help grow their organization on a national level.

Young Fastener Professionals (YFP) is committed to providing educational and networking opportunities for ambitious young professionals desiring professional growth within the fastener industry. They empower, advocate for, and provide opportunities for education and networking for young fastener professionals.

For more information contact the YFP at nfda-fasteners.org


2022 marks the 40th anniversary of the IFE Fastener Hall of Fame, which recognizes professionals who have made significant and enduring contributions to the industrial fastener industry on a national or global scale. As part of the annual International Fastener Expo, the Hall of Fame inductees are selected from names submitted by people like you. Now is the time to nominate someone you think has made a difference in the fastener industry, through leadership, innovation, or education. Are you ready to nominate a deserving colleague today? Nominate online at FastenerShows.com. Deadline to submit nominations is July 30th.


If you would like to share your company’s events or news, or sponsor an upcoming episode of IN THE NEWS, contact me lisa@fastenernewsdesk.com.

Thanks for tuning in to this week’s episode of IN THE NEWS with Fastener News Desk.

Until next week, be well, stay safe and Keep it Fastenating.


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how-distributors-can-self-disrupt-to-win-in-the-new-digital-world

How distributors can self-disrupt to win in the new digital world

By Alex Abdelnour, Brooke Daniels, Steve Reis, and Kevin Sachs

Distributors can learn new strategies to make them effective in a world with increasingly powerful digital players.

Digital natives and online e-commerce platforms have raised standards in retail service and convenience, gaining ground across industries. The disruption will continue. Many of the biggest digital online players are eyeing expansions into B2B realms. Chief among them is Amazon Business. Launched in 2015, it averaged annual growth of 115 percent in its first three years. Its revenues rose from $10 billion in 2018 to $25 billion in 2021, and are expected to top $31 billion by 2023, with $11 billion in gross margin, making Amazon one of the largest distributors in the United States.

To continue growing, Amazon Business and many other large digital players, such as eBay, Alibaba, and Mercato, are building best-in-class distribution networks and go-to-market sales forces and offering products they used to avoid due to technical or supply chain challenges. Many are also venturing beyond their core geographies, such as Europe, where most incumbent distributors are smaller and have been slow to innovate and invest in digital capabilities.

According to the McKinsey 2021 survey of close to 3,500 B2B decision makers in a dozen countries, around 25 percent fewer distributors in Europe expect to increase investments in e-commerce technologies compared with those in the United States2 —even though European B2B customers say they are excited about the faster, cheaper, and more seamless buying experiences that digital players can offer. In fact, 95 percent of B2B buyers said they were willing to make purchases without interacting with salespeople.

Listen to the episode now: 

All is not lost, however. Distributors who have not yet been disrupted can learn from early adopters on the front line. Indeed, we believe they should endeavor to learn new strategies quickly to keep pace with digital players that significantly invest in digital and customer experience, supply chain, and talent. We recommend that distributors around the world consider actions across four categories:

  1. Build a unique ecosystem to address customer pain points. This will help distributors provide technical expertise and value-added services that only they can offer, strengthening customer loyalty.
  2. Build a distinctive supply chain to keep pace with digital leaders. Traditional distributors aiming to offer a true omnichannel experience might need to forge innovative new partnerships and alliances.
  3. Focus on tomorrow’s essentials and sales interactions. Nearly every distributor will need up-to-date digital tools, including advanced analytics and the cloud, to personalize the customer experience and align with new “hybrid” ways of doing business.
  4. Bring privileged insights to decision making by tapping treasure troves of data.

Amazon Business: Digital native and leader of the pack

Amazon recognized the B2B opportunity early by acquiring Small Parts, an online and catalog specialty and materials player, in 2005. It quickly built differentiated B2C-like offerings with analytical and digital capabilities such as an integrated procurement system, flexible payment options, enhanced invoicing capability, dynamic competitive pricing, and ease of use.

With its brand name and logistics built on Amazon’s consumer infrastructure—including the ability to reach 93 percent of US customers in one day—Amazon Business is now the sixth-largest distributor in the United States, disrupting sectors from auto parts to food and janitorial supplies.3 For example, after it acquired Whole Foods in June 2017, the value of shares in publicly traded food-service distributors dropped by up to 5 percent. After Amazon purchased PillPack in June 2018, shares in publicly traded pharmaceutical distributors dropped by as much as 8 percent.

Amazon Business is expected to continue its momentum. It’s playing in a highly fragmented global B2B market worth about $70 trillion that lacks sophistication where online penetration may be less than 15 percent.

The threat is on the horizon

Digital players eyeing the highly fragmented B2B market are making major investments to build distribution-center networks and expand their B2B fulfillment footprints and capabilities. Experts tell us that leading digital players are building dedicated sales organizations that mirror those of traditional distributors, hiring key account managers to serve a large swath of Fortune 100 companies and forming field sales teams to acquire small and medium-sized customers.

Perhaps most worrisome to traditional distributors is digital players’ growing technical expertise across sectors. Leaders are now using advanced algorithms to identify which parts customers need based on the specific machines they use, breaching a moat of technical knowledge that has protected many distributors for years.

Moreover, many digital players are also building scale by expanding beyond their core geographical markets. Consider a few examples:

  • Alibaba, with about a 60 percent share of the Chinese market,4 expanded into Russia in 2016 and partnered with the French food retailer Auchan in 2017, opening offices across Europe.
  • Mercateo, Europe’s leading e-procurement platform, averaged 29 percent annual growth from 2005 to 20175 —without any physical warehouses—by acting as an intermediary between B2B trading partners.
  • Amazon Business launched in Germany in 2016, in the United Kingdom, Japan, and India in 2017, in France, Italy, and Spain in 2018, and Canada in 2019, with strategies tailored to each country. In Europe, for example, Amazon made value-added-tax compliance easier for its vast number of sellers; in India, it focused on the needs of microenterprises; and in Japan, it gave buyers the ability to print orders, which could then be stamped with the approvals that many companies still require.

Not all sectors are equally at risk

Experts tell us that digital giants consider three dimensions when deciding whether to enter an industry or geography:

  • market and sector attractiveness in terms of size and growth, where digitization can improve customer experience, and where competitors are mostly fragmented and lack sophistication
  • product categories that are easy to ship, with high margins, low requirements for aftersales support, and limited or no technical expertise expected
  • customer segments that are price-sensitive, low-touch or digital self-serve, or that can be served by an account management team because they require few value-added services

Distributors at the greatest risk may, therefore, be those operating in large segments with high margins, limited technical expertise, low value-added services, low customer purchasing power and easy-to-ship products, such as electronics and general industrial and auto parts. For instance, most electronics are small and easy to ship, and many transactions are made online. Similarly, the general industrial segment has high margins, relatively easy-to-ship products, and mostly smaller buyers with knowledge and expertise.

By contrast, traditional distributors in the metal and building products segments may face lower risk because their products tend to be hard to ship. That could change, however, as digital players are increasingly forming partnerships with third-party vendors to ship large, bulky products, such as refrigerators and lumber. Traditional distributors who can supply “whole jobs” may have advantages against digital players, which are built to fill small orders and can struggle to meet multicategory needs.

Regardless of which segment they are in, all distributors, even those whose customer relationships seem invulnerable today, should craft plans to compete with digital disruptors. A 2019 McKinsey survey of more than 1,000 senior OEM leaders revealed that 48 percent would collaborate with Amazon if it became the largest distributor. As one HVAC and plumbing manufacturer put it, “Amazon is the ideal partner. Cooperation will mean faster and more shipping opportunities and faster capital flow. It’s a win–win model.”

Regardless of which segment they are in, all distributors, even those whose customer relationships seem invulnerable today, should craft plans to compete with digital disruptors.

How to manage digital disruption

This is the moment to build competitive capabilities. Some leading distributors in North America are already strengthening their business models to outperform digital natives on many dimensions. We can learn from them and from companies in other industries that have survived severe disruptions.

Leading distributors are working hard to create tangible commercial differentiation, investing in technology to close gaps between their operations and those of digital natives, and reinvesting the savings to create omnichannel customer experiences, all while aggressively pursuing scale through consolidation.

Customer intimacy: Build a one-of-a-kind symbiotic ecosystem

Many digital players tend to excel in consumable-product categories that require limited technical expertise, where customers know exactly what they want and constantly replenish their supplies.

But customers tell us that traditional distributors have the upper hand in several top-selection criteria, including product availability, customer service and technical expertise, and a long tail of products that pure digital players can’t match without big investments in technical talent and physical assets.

The most successful traditional distributors are working hard to address customer pain points and build interconnected ecosystems. In the wake of the 2009 housing recession, for example, a leading building-product distributor quickly helped its technical team develop the capabilities to install windows and doors for the many custom home builders struggling to find qualified labor—a service no digital giant could match. A leading packaging distributor, recognizing that traditional product sales will always be at the cusp of disruption, began offering “Silicon Valley level” custom design services and global sourcing and supply chain excellence to help address customers’ packaging needs.

Supply chain optimization: Keep pace with digital leaders

A great supply chain is essential, but it won’t be enough to differentiate, especially since some digital players and retailers have started to promise one-day delivery. That said, certain traditional distributors have—or can build—service capabilities that may give them an advantage over pure-play digital organizations. Some leading metal and building distributors, for instance, use special carriers to deliver harder-to-ship large and bulky products. Some roofing distributors use specialized flatbed trucks with conveyers to deliver products to rooftops quickly and safely.

Many leading distributors have embarked on providing an omnichannel experience by providing customers with seamless experiences across physical and online channels. Success requires first-rate demand forecasting to select the right product assortments for each channel, along with real-time inventory tracking (following the same method some retailers use to let customers search for and buy goods online and then pick them up in-store).

Many distributors are partnering with other players to gain an edge. In 2020, American Tire Distributors (ATD) partnered with OneRail, a cloud-based platform for same-day and on-demand delivery, to expedite tire delivery. With OneRail’s more than 100 delivery companies and 4.5 million deliveries, ATD could offer customers instant access to inventory from regional distribution centers in 90 minutes or less—a significant improvement that delights customers.6

Even Walmart, despite its scale, has been partnering with Handy, a third-party logistics provider, since 2018 in its home services business. Handy’s in-home installation and assembly assistance are options for customers in more than 2,000 Walmart stores and online.7

Digital renaissance: Focus on tomorrow’s essentials

Shoppers of all kinds now expect easy-to-navigate e-commerce portals and advanced online capabilities. In our survey of B2B decision makers, eight in ten said they perceived the digital-led omnichannel model to be as or more effective than traditional methods,8 a sentiment that has grown sharply since the onset of the pandemic. And remote and self-service are not just for low-value purchases: more than 56 percent of B2B decision makers say they would spend more than $50,000 on a completely remote or self-serve interaction. Many leading brick-and-mortar retail players are defending their revenues by becoming more “experiential,” providing digital offerings that complement rather than replace physical infrastructure.

Best Buy, for instance, has countered the availability of electronics products online by redesigning some stores as fulfillment hubs. At a few select Minneapolis stores, for example, the company shrank shoppable square footage by nearly 50 percent, freeing space for staging products for in-store pickup and ship-from-store transactions. Combined with its price-matching strategy, these changes have helped Best Buy maintain its leadership in electronics retailing.9

To tailor experiences even more closely to customers’ needs, most distributors should collect and explore data from more touchpoints including inventory, mobile devices, third parties, desktops, and public sources. Getting close to customers is a strong competitive advantage, especially in e-commerce, where mobile use is projected to grow at 14 percent annually, more than double desktop growth of 6 percent.

Distributors unable to build these digital capabilities should consider the Walmart example. Walmart acquired Jet.com in 2016 and grew it quickly. But the acquisition did more than boost Walmart’s bottom line—it provided access to a new target market: urban millennials, a demographic that Walmart had found hard to reach.

Analytical revolution: Bring privileged insights to decision making

Traditional distributors share a strength with digital players: they offer tens of thousands or even millions of SKUs to thousands of customers every day, and therefore have the rich volumes of data they need to use advanced analytics and machine learning to uncover valuable, granular, real-time insights. With the right talent and tools, they can anticipate customers’ needs, make the right product recommendations, offer alternative solutions, and achieve profitable growth by dynamically aligning offerings, key buying criteria, and customers’ willingness to pay.

Distributors’ major challenge is not when to start; rather, it is where to start. They can choose from a broad range of proven digital and analytical use cases and launch in just a few weeks. A leading industrial distributor, for example, became a digitally enabled powerhouse by using advanced analytics to optimize pricing, cross-selling, routing, and so on. The traditional organization adopted a start-up mentality, using pilots to prove use cases and build credibility gradually with the sales team and customers.


Nearly every distributor is facing disruption as digital natives build upon their successes in B2C to expand into B2B. The question traditional distributors should be asking now is how they can “self-disrupt” to compete with such formidable opponents. No matter what strategy they pursue, we expect the winners to galvanize their organizations to create more innovative cultures with a relentless focus on customers.

It’s not easy, but it beats the alternative—declining market share, revenues, and profits—and the lessons are clear.

Content Source: McKinsey & Company 


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in-the-news-with-fastener-news-desk-the-week-of-april-4th,-2022

IN THE NEWS with Fastener News Desk the Week of April 4th, 2022

I’m Lisa Kleinhandler, Editor-in-Chief at Fastener News Desk… It’s IN THE NEWS with Fastener News Desk the Week of April 4th, 2022

WATCH NOW! FASTENERTV YOUTUBE CHANNEL: (7MIN-35SEC)


This week’s episode of in the news is sponsored by Product Genius Technology. Enhance your website customer experience with the new view for industrial product search. Turn your sales team into product genius’s when selling complex product categories online.


In Manufacturing News…

The ISM March 2022 Manufacturing ISM® Report On Business®, Manufacturing PMI® came in at 57.1%; Economic activity in the manufacturing sector grew in March, with the overall economy achieving a 22nd consecutive month of growth, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®. Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: stated that “The U.S. manufacturing sector remains in a demand-driven, supply chain-constrained environment. In March, progress was made to solve the labor shortage problems at all tiers of the supply chain, which will result in improved factory throughput and supplier deliveries. Read more:


In Shipping news…

The Scanwell Shipper Newsletter was released today. Chris Connell reports that based on their analytics, current global affairs and what could potentially happen this summer, I’m afraid we’re in for what is looking like a wild ride, at least for the next 4 to 5 months. Read the full report at FastenerNewsDesk.com


In Fastener Industry Events this week are:

The Fastener Training Institute & Industrial Fastener Institute have 2 days of in-person training classes:

Basics of Aerospace Fasteners  Monday, April 4th, 9 a.m. to 5 p.m. & Fatigue in Fasteners Tuesday, April 5th, 9 a.m. to 2 p.m.

This full-day course explores the basics of aerospace fasteners, including why aerospace fasteners are unique in the fastener world, how an aircraft is put together and the fasteners used to accomplish this, why exotic metals are commonly used, and a look at a variety of different fastener types used in aerospace. Participants will gain a better understanding of how aerospace fasteners are different than those for other industrial purposes. This is a fast-paced basic course and excellent for anyone relatively new to the industry, anyone having made a role change that would benefit from a general overview of the industry or anyone that wishes to learn more about aerospace fasteners. Go to FastenerTraining.org for more info.


In Association News…

Tim O’Keeffe GL Huyett has been Awarded the National Fastener Distributors Association’s 2022 Fastener Professional of the Year. The Fastener Professional of the Year award was created by NFDA to honor individuals and companies that make a substantial positive impact on people’s lives. Congratulations Tim!


Here’s what happening in fastener industry association scholarship opportunities!

Women in the Fastener Industry Margaret Davis Scholarship application is DUE TODAY! WIFI honors the memory of Margaret Davis of ISSCO, INC & BTM Manufacturing with a scholarship to Fastener Fair USA in Detroit, MI May 17- 19th. Scholarship awardee will receive travel, accommodations, and entrance to the expo. For more info or to join WIFI Go to:  👉https://fastenerwomen.com/scholarships


The North Coast Fastener Association Scholarship Application for 2022 is now available for current NCFA Members. View application and review eligibility requirements go to NCFAonline.com


The Gilchrist Foundation Scholarship application is also open. The scholarship was established to provide financial assistance for college education for persons involved in the fasteners industry (or children of those employed in this industry). Robbie and Gina Gilchrist’s wishes are to give something back to an industry that provided so much to them. The Gilchrist Foundation will award one or more scholarships annually. For more info go to: http://www.gilchristfoundation.com/

For more scholarship opportunities check under the resources tab at FastenerNewsDesk.com


In Event News:

SAVE THE DATE for the 2022International Fastener Expo. You won’t want to miss the 40th anniversary ceremony for the IFE Fastener Hall of Fame, which recognizes professionals who have made significant and enduring contributions to the industrial fastener industry on a national or global scale. As part of the annual International Fastener Expo, the Hall of Fame inductees are selected from names submitted by people like you. Now is the time to nominate someone you think has made a difference in the fastener industry, through leadership, innovation, or education. Nominate online at FastenerShows.com. Deadline to submit nominations is July 30th.


In Digital Transformation News:

The past two years have certainly been a digital wake-up call for distributors and manufacturers. B2B buyers’ behaviors have gone full on digital! Digitizing data and product information is key to the beginnings of your business’s digital transformation. Data is the foundation to your company’s digital growth.

Is your product data ready for eCommerce, a great user experience, investors, or marketplaces?

Product Genius Technology services include, data cleaning and preparation, consulting, and strategizing. Contact ProductGeniusTechnology.com or call 1-800-fasteners to find out how to get started today.


The stories featured in this week’s episode of IN THE NEWS can be found at Fastener News Desk or in our Twitter feed @FastenerNews and on LinkedIn in the Fastener News Group!


Fastener News Desk will have the grand opening for The Fastener Museum this Spring, the online museum will feature a collection of industry memorabilia that dates back over the past decades. We welcome all fastener companies to share individual digital images of your memorabilia with us to add to the Fastener Museum and help create the largest online collection of fastener related history.

If you would like to share your company’s events, news or sponsor an upcoming episode of IN THE NEWS or would like to add to the Fastener Museum me: lisa@fastenernewsdesk.com.

Thanks for tuning in to this week’s episode of IN THE NEWS with Fastener News Desk.

Until next week, be well, be safe and Keep it Fastenating.


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scanwell-monthly-logistics-report-|-april-2022

Scanwell Monthly Logistics Report | April 2022

The latest news in the ocean, air, rail, and trucking industries

By Chris Donnell

Clients, Friends and Colleagues;

There’s a lot of things happening in the transportation world and while I wish I was able to provide you with a glimmer of hope that things are getting better but I’m afraid we’re not out of the woods just yet. Based on our analytics, current global affairs and what could potentially be happening this summer, I’m afraid we’re in for what is looking like a wild ride, at least for the next 4 to 5 months. Attached to this email is my most recent newsletter which highlights just some of the more pressing issues within the transportation and supply chain industries.  Have a wonderful weekend and here re just a few topics which take precedence in today’s ever changing transportation market. 

Ocean Carriers, Freight Rates and Ports:  

  • Capacity is opening up however with what’s happening in China, the rebound effect will could be catastrophic.  
  • Carriers are warning that rates could go higher due to the shutdowns in China
  • Long Beach and Los Angeles prepare for yet another wave on container vessels and congestion is expected to get worse.
  • The ILWU container is set to expire on July 1st, could we face a potential West Coast port strike?
  • Carriers are under the scrutiny of DOJ and FMC and are heading into contract negotiations with a different approach and it’s not good.

Air Freight:

  • Airline carriers are bypassing places like Shanghai due to Covid-19 issues, further complicating that struggling air market, what’s going to happen once Shanghai opens? Some are predicting air rates to reach into the stratosphere.
  • Even with places like Shanghai, Yantian and Hong Kong having shuttered due to Covid, air rates have somewhat flatlined as of late; while air rates are still more than 200% higher than they were pre-pandemic.

FULL SCANWELL REPORT:

April 1st 2022 Scanwell Newsletter

Intermodal (Rail):

  • Rail continue  to struggle and they failed to adapt to the surge in IPI as they have stranded countless rail cars in places like the Midwest even though they are sorely needed on the West Coast. Could greed be the culprit?
  • Congestion at major IPI (Inland) rail depots still remains. Places like Kansas City, Chicago, Memphis are still seeing elevated numbers. Chassis shortages are still happening and further adding to the rail ramp issues.

Trucking:

  • Fuel surcharges and per mile costs are on the rise. Last March the average fuel surcharge averaged around 23% whereas today figure averages at 45% or higher.  Linehaul, drayage and delivery costs are roughly 30% higher today than a ear ago.   

Infrastructure and Government:

  • China’s current COVID situation is about to impact on the global supply chain and it’s forecasted to not be pretty. Europe is seeing their own wave of Covid and will only further worse that fragile global supply balance.
  • Inflation is at a 40 year high and expected to continue to rise, consumers need to be prepared.
  • The DOJ and FMS are investigating the ocean carriers, the alliances they have established and are weighing removing anti-trust immunity, this could cripple the shipping industry.

CONTACT INFO:

Chris Donnell | National Sales Director

Scanwell Logistics International (CHI) Inc.

E-Mail: chrisdonnell@scanwell.com

Web: www.scanwell.com


RELATED CONTENT:

Scanwell Monthly Logistics Report | January 2022

IN THE NEWS with Fastener News Desk the Week of March 28th, 2022

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manufacturing-pmi-at-57.1%;-march-2022-manufacturing-ism-report-on-business

Manufacturing PMI® at 57.1%; March 2022 Manufacturing ISM® Report On Business®

New Orders, Production and Employment Growing; Supplier Deliveries Slowing at a Slower Rate; Backlog Growing; Raw Materials Inventories Growing; Customers’ Inventories Too Low; Prices Increasing; Exports and Imports Growing

,  /PRNewswire/ — Economic activity in the manufacturing sector grew in March, with the overall economy achieving a 22nd consecutive month of growth, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee:

“The March Manufacturing PMI® registered 57.1 percent, a decrease of 1.5 percentage points from the February reading of 58.6 percent. This figure indicates expansion in the overall economy for the 22nd month in a row after a contraction in April and May 2020. This is the lowest reading since September 2020 (55.4 percent). The New Orders Index registered 53.8 percent, down 7.9 percentage points compared to the February reading of 61.7 percent. The Production Index reading of 54.5 percent is a 4-percentage point decrease compared to February’s figure of 58.5 percent. The Prices Index registered 87.1 percent, up 11.5 percentage points compared to the February figure of 75.6 percent. The Backlog of Orders Index registered 60 percent, 5 percentage points lower than the February reading of 65 percent. The Employment Index figure of 56.3 percent is 3.4 percentage points higher than the 52.9 percent recorded in February. The Supplier Deliveries Index registered 65.4 percent, a decrease of 0.7 percentage point compared to the February figure of 66.1 percent. The Inventories Index registered 55.5 percent, 1.9 percentage points higher than the February reading of 53.6 percent. The New Export Orders Index reading of 53.2 percent is down 3.9 percentage points compared to February’s figure of 57.1 percent. The Imports Index registered 51.8 percent, a 3.6-percentage point decrease from the February reading of 55.4 percent.”

Fiore continues, “The U.S. manufacturing sector remains in a demand-driven, supply chain-constrained environment. In March, progress was made to solve the labor shortage problems at all tiers of the supply chain, which will result in improved factory throughput and supplier deliveries. Panelists reported lower rates of quits and early retirements compared to previous months, as well as improving internal and supplier labor positions. March brought back increasing rates of price expansion, due primarily to instability in global energy markets. Suppliers are not waiting to experience the full impacts of price increases before negotiating with their customers. Panel sentiment remained strongly optimistic regarding demand, with six positive growth comments for every cautious comment, down from February’s ratio of 12-to-1. Demand expanded, with the (1) New Orders Index remaining in growth territory, supported by weaker growth of new export orders, (2) Customers’ Inventories Index remaining at a very low level and (3) Backlog of Orders Index continuing in strong growth territory. Consumption (measured by the Production and Employment indexes) grew during the period, though at a slower rate, with a combined minus-0.6-percentage point change to the Manufacturing PMI® calculation. The Employment Index expanded for a seventh straight month; panelists indicate their ability to hire continues to improve, to a greater degree than in February. Challenges with turnover (quits and retirements) and resulting backfilling continue to plague panelists’ efforts to adequately staff their organizations, but to a lesser extent compared to February. Amid signs of staffing and supplier delivery improvements, production expanded at disappointing levels, likely due to timing issues. Inputs — expressed as supplier deliveries, inventories, and imports — continued to constrain production expansion. The Supplier Deliveries Index again slowed, but at a slightly slower rate in March, while the Inventories Index increased at a slightly faster rate and the Imports Index grew at a slower rate. The Prices Index increased for the 22nd consecutive month, at a dramatically higher rate compared to February.

“Five of the six biggest manufacturing industries — Food, Beverage & Tobacco Products; Machinery; Transportation Equipment; Chemical Products; and Computer & Electronic Products — registered moderate-to-strong growth in March.

“Manufacturing performed well for the 22nd straight month, with demand registering slower month-over-month growth (likely due to extended lead times) and consumption softening slightly (due to labor force improvement). Omicron impacts are being felt by overseas partners, and the impact to the manufacturing community is a potential headwind,” says Fiore.

Fifteen manufacturing industries reported growth in March, in the following order: Apparel, Leather & Allied Products; Furniture & Related Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Machinery; Textile Mills; Transportation Equipment; Fabricated Metal Products; Paper Products; Chemical Products; Computer & Electronic Products; Nonmetallic Mineral Products; Primary Metals; and Plastics & Rubber Products. The two industries reporting a decrease in March compared to February are: Wood Products; and Petroleum & Coal Products.

WHAT RESPONDENTS ARE SAYING

  • “No letup yet in supply chain challenges, especially electronic components. Relying more and more on the broker market.” [Computer & Electronic Products]
  • “Customer orders are brisk in the face of significant price increases, while we continue to struggle with inbound supplier service and raw material availability issues.” [Chemical Products]
  • “Generally speaking, the business environment is slowly improving for aerospace component manufacturers. Supply chain disruptions and still-extending lead times continue to keep purchasing busy. This further causes reevaluation of the current year’s business plan and cost assumptions.” [Transportation Equipment]
  • “Overall business conditions are challenging in both domestic and international transportation. The Russian invasion of Ukraine has created uncertainty in the grain markets, causing upward pricing pressure. In addition, inflationary pressures across all categories have made it challenging to manage cost and profitability.” [Food, Beverage & Tobacco Products]
  • “Prices are increasing on steel and steel products after a slight decrease from highs last month. Transportation costs are going up significantly with the increase in fuel prices.” [Machinery]
  • “Backlog continues to be strong as we ship delinquent orders resulting from COVID-19 slowdowns.” [Fabricated Metal Products]
  • “Demand continues to be strong. Backlog is still increasing — currently at about three months of production. Availability of purchased material continues to constrain production, causing the increased backlog.” [Electrical Equipment, Appliances & Components]
  • “Business continues to be strong, with incoming sales higher but still combating labor and material issues like availability and inflation. Still determining impact of the Russian invasion of Ukraine.” [Furniture & Related Products]
  • “The supply situation is getting worse, with lead times extending over 12 months, material not available, and suppliers not quoting or taking orders. Prices on the rise daily.” [Miscellaneous Manufacturing]
  • “Supply chain is still unstable. While we have seen improvements, there are still a lot of issues that have yet to be resolved.” [Primary Metals]

MANUFACTURING AT A GLANCEMarch 2022

Index

Series Index

Mar

Series Index

Feb

PercentagePointChange

Direction

Rate of

Change

Trend*

(Months)

Manufacturing PMI®

57.1

58.6

-1.5

Growing

Slower

22

New Orders

53.8

61.7

-7.9

Growing

Slower

22

Production

54.5

58.5

-4.0

Growing

Slower

22

Employment

56.3

52.9

+3.4

Growing

Faster

7

Supplier Deliveries

65.4

66.1

-0.7

Slowing

Slower

73

Inventories

55.5

53.6

+1.9

Growing

Faster

8

Customers’ Inventories

34.1

31.8

+2.3

Too Low

Slower

66

Prices

87.1

75.6

+11.5

Increasing

Faster

22

Backlog of Orders

60.0

65.0

-5.0

Growing

Slower

21

New Export Orders

53.2

57.1

-3.9

Growing

Slower

21

Imports

51.8

55.4

-3.6

Growing

Slower

5

OVERALL ECONOMY

Growing

Slower

22

Manufacturing Sector

Growing

Slower

22

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Inventories indexes.

*Number of months moving in current direction.

COMMODITIES REPORTED UP/DOWN IN PRICE AND IN SHORT SUPPLY

Commodities Up in Price

Adhesives and Paint (4); Aluminum (22); Aluminum Products (3); Brass; Cable Assemblies (2); Caustic Soda; Copper (3); Copper Products; Corrugate (2); Corrugated Packaging (17); Crude Oil (3); Diesel Fuel (15); Electrical Components (16); Electronic Components (16); Energy; Fasteners; Freight (17); Hydraulic Components; Labor — Temporary (11); Logistics Services; Lubricants; Lumber (4); Natural Gas (9); Nickel; Packaging Supplies (16); Pallets (2); Paper; Paper Products (3); Pigments; Plastic Resins (3); Plywood; Polypropylene; Precious Metals; Rubber; Rubber Based Products (8); Semiconductors (14); Solvents (2); Soy Based Products (3); Steel* (20); Steel — Hot Rolled; Steel — Scrap; Steel — Stainless (17); Steel Products* (19); Titanium; and Zinc Compounds (3).

Commodities Down in PriceSteel* (5).

Commodities in Short SupplyAluminum (5); Aluminum Products; Cable Assemblies; Caustic Soda; Electrical Components (18); Electronic Components (16); Fabricated Metal Products; Food Oils (2); Freight; Labor — Temporary (11); Lumber; Nickel; Ocean Freight; Packaging Materials; Plastic Resins — Other (13); Power Supplies; Printed Circuit Board Assemblies (3); Programmable Logic Controllers; Resin Based Products; Rubber Based Products (2); Semiconductors (16); Steel (2); Steel — Stainless; and Wire — Copper.

Note: The number of consecutive months the commodity is listed is indicated after each item.

*Indicates both up and down in price.

MARCH 2022 MANUFACTURING INDEX SUMMARIES

Manufacturing PMI

® 

Manufacturing grew in March, as the Manufacturing PMI® registered 57.1 percent, 1.5 percentage points lower than the February reading of 58.6 percent. This is the lowest reading since September 2020, when the composite index registered 55.4 percent. “The Manufacturing PMI® continued to indicate strong sector expansion and U.S. economic growth in March. All five subindexes that directly factor into the Manufacturing PMI® were in growth territory. Five of the six biggest manufacturing industries — Food, Beverage & Tobacco Products; Machinery; Transportation Equipment; Chemical Products; and Computer & Electronic Products — registered moderate-to-strong growth in March. The New Orders and Production indexes remained in expansion territory. The Supplier Deliveries Index softened slightly, and the Inventories Index increased, indicating easing of supply chain congestion. All 10 of the subindexes were positive for the period; a reading of ‘too low’ for the Customers’ Inventories Index is considered a positive for future production,” says Fiore. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

A Manufacturing PMI® above 48.7 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the March Manufacturing PMI® indicates the overall economy grew in March for the 22nd consecutive month following contraction in April and May 2020. “The past relationship between the Manufacturing PMI® and the overall economy indicates that the Manufacturing PMI® for March (57.1 percent) corresponds to a 2.9-percent increase in real gross domestic product (GDP) on an annualized basis,” says Fiore.

THE LAST 12 MONTHS

Month

ManufacturingPMI®

 

Month

ManufacturingPMI®

Mar 2022

57.1

 

Sep 2021

60.5

Feb 2022

58.6

 

Aug 2021

59.7

Jan 2022

57.6

 

Jul 2021

59.9

Dec 2021

58.8

 

Jun 2021

60.9

Nov 2021

60.6

 

May 2021

61.6

Oct 2021

60.8

 

Apr 2021

60.6

Average for 12 months – 59.7

High – 61.6

Low – 57.1

New OrdersISM®‘s New Orders Index registered 53.8 percent in March, a decrease of 7.9 percentage points compared to the 61.7 percent reported in February. This indicates that new orders grew for the 22nd consecutive month. While the New Orders Index remains in growth territory, the month-over-month decrease is the largest since a 15.3-percentage point drop in April 2020. “Five of the six largest manufacturing sectors increased new orders at moderate-to-strong levels: Food, Beverage & Tobacco Products; Transportation Equipment; Chemical Products; Computer & Electronic Products; and Machinery. Price instability, softening lead times and panelists’ order books being full resulted in a pause in new order rates. Backlog and customer inventories remain at very encouraging levels, indicating that demand remains strong in spite of this month’s slowing in new order expansion,” says Fiore. A New Orders Index above 52.9 percent, over time, is generally consistent with an increase in the Census Bureau’s series on manufacturing orders (in constant 2000 dollars).

Of the 18 manufacturing industries, 13 reported growth in new orders in March, in the following order: Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Textile Mills; Electrical Equipment, Appliances & Components; Transportation Equipment; Paper Products; Chemical Products; Fabricated Metal Products; Furniture & Related Products; Computer & Electronic Products; Plastics & Rubber Products; and Machinery. The only industry reporting a decline in new orders in March is Petroleum & Coal Products.

New Orders

%Higher

%Same

%Lower

Net

Index

Mar 2022

28.2

60.4

11.4

+16.8

53.8

Feb 2022

32.5

61.4

6.1

+26.4

61.7

Jan 2022

25.0

60.5

14.5

+10.5

57.9

Dec 2021

24.6

64.6

10.8

+13.8

61.0

ProductionThe Production Index registered 54.5 percent in March, 4 percentage points lower than the February reading of 58.5 percent, indicating growth for the 22nd consecutive month. “Of the top six industries, five — Food, Beverage & Tobacco Products; Transportation Equipment; Machinery; Chemical Products; and Computer & Electronic Products — expanded in March. Demand remains strong: Labor and material availability continue to improve, but factories are still struggling to hit optimum output rates,” says Fiore. An index above 52.4 percent, over time, is generally consistent with an increase in the Federal Reserve Board’s Industrial Production figures.

The 11 industries reporting growth in production during the month of March — listed in order — are: Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Textile Mills; Transportation Equipment; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Furniture & Related Products; Machinery; Chemical Products; and Computer & Electronic Products. The four industries reporting a decrease in March are: Paper Products; Primary Metals; Wood Products; and Plastics & Rubber Products.

Production

%Higher

%Same

%Lower

Net

Index

Mar 2022

25.7

62.3

12.0

+13.7

54.5

Feb 2022

27.5

61.8

10.7

+16.8

58.5

Jan 2022

21.9

65.7

12.4

+9.5

57.8

Dec 2021

25.6

57.0

17.4

+8.2

59.4

EmploymentISM®‘s Employment Index registered 56.3 percent in March, 3.4 percentage points above the February reading of 52.9 percent. “The index reported a seventh consecutive month of expansion. Of the six big manufacturing sectors, four (Transportation Equipment; Food, Beverage & Tobacco Products; Machinery; and Computer & Electronic Products) expanded. Survey panelists’ companies are still struggling to meet labor management plans, but there were signs of improvement compared to February: A larger share of comments (12 percent in March, up from 4 percent in February) noted greater hiring ease. An overwhelming majority of panelists again indicate their companies are increasing head counts or attempting to, as 85 percent of Employment Index comments were hiring focused. Among those respondents, 28 percent expressed difficulty in filling positions, down from 34 percent in February. Although turnover rates remained elevated (30 percent of comments cited backfills and retirements, a decrease from 38 percent in February), there were indications of hiring improvement and a potential slowing in quits. April will provide better clarity,” says Fiore. An Employment Index above 50.5 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.

Of 18 manufacturing industries, 10 industries reported employment growth in March, in the following order: Apparel, Leather & Allied Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Food, Beverage & Tobacco Products; Fabricated Metal Products; Machinery; Paper Products; Miscellaneous Manufacturing; and Computer & Electronic Products. The four industries reporting a decrease in employment in March are: Textile Mills; Wood Products; Primary Metals; and Plastics & Rubber Products.

Employment

%Higher

%Same

%Lower

Net

Index

Mar 2022

24.4

65.2

10.4

+14.0

56.3

Feb 2022

21.6

62.4

16.0

+5.6

52.9

Jan 2022

19.2

65.7

15.1

+4.1

54.5

Dec 2021

15.5

72.2

12.3

+3.2

53.9

Supplier DeliveriesThe delivery performance of suppliers to manufacturing organizations was slower in March, as the Supplier Deliveries Index registered 65.4 percent, 0.7 percentage point lower than the 66.1 percent reported in February. Of the six top manufacturing industries, five (Machinery; Computer & Electronic Products; Chemical Products; Food, Beverage & Tobacco Products; and Transportation Equipment) reported slowing deliveries. “Deliveries slowed at a slightly slower rate compared to the previous month. The index continues to reflect suppliers’ difficulties in meeting demand from panelists’ companies. Supplier labor issues are improving, according to panelists’ comments, and transportation networks are beginning to demonstrate more flexibility, which should support improvement in the index in the second quarter (Q2),” says Fiore. (For more data on lead times, see the Buying Policy section of this report.) A reading below 50 percent indicates faster deliveries, while a reading above 50 percent indicates slower deliveries.

Fifteen of 18 industries reported slower supplier deliveries in March, in the following order: Apparel, Leather & Allied Products; Paper Products; Textile Mills; Machinery; Furniture & Related Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Primary Metals; Fabricated Metal Products; Computer & Electronic Products; Chemical Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; and Transportation Equipment. The only industry reporting faster supplier deliveries in March as compared to February is Wood Products.

Supplier Deliveries

%Slower

%Same

%Faster

Net

Index

Mar 2022

34.8

61.2

4.0

+30.8

65.4

Feb 2022

39.0

54.2

6.8

+32.2

66.1

Jan 2022

34.4

60.4

5.2

+29.2

64.6

Dec 2021

34.7

60.5

4.8

+29.9

64.9

InventoriesThe Inventories Index registered 55.5 percent in March, 1.9 percentage points higher than the 53.6 percent reported for February. “Manufacturing inventories expanded at a faster rate compared to February and are again climbing. Continuing part shortages are evident in (1) increased receipts of products from suppliers and (2) expansion of work-in-process inventories to manage absorption. Manufacturing inventories will continue to expand through the first half of 2022, as these conditions persist in Q2,” says Fiore. An Inventories Index greater than 44.4 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).

The 14 industries reporting higher inventories in March — in the following order — are: Apparel, Leather & Allied Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; Textile Mills; Machinery; Nonmetallic Mineral Products; Paper Products; Primary Metals; Chemical Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Computer & Electronic Products; Transportation Equipment; and Fabricated Metal Products. Only Plastics & Rubber Products reported contracting inventories in March.

Inventories

%Higher

%Same

%Lower

Net

Index

Mar 2022

24.5

63.6

11.9

+12.6

55.5

Feb 2022

23.4

63.3

13.3

+10.1

53.6

Jan 2022

21.8

62.7

15.5

+6.3

53.2

Dec 2021

21.6

61.7

16.7

+4.9

54.6

Customers’ InventoriesISM®‘s Customers’ Inventories Index registered 34.1 percent in March, 2.3 percentage points higher than the 31.8 percent reported for February, indicating that customers’ inventory levels were considered too low. “Customers’ inventories are too low for the 66th consecutive month, a positive for future production growth. For 20 straight months, the Customers’ Inventories Index has been at historically low levels,” says Fiore.

No industries reported customers’ inventories as too high in March. The 11 industries reporting customers’ inventories as too low during March — listed in order — are: Paper Products; Transportation Equipment; Miscellaneous Manufacturing; Fabricated Metal Products; Plastics & Rubber Products; Machinery; Primary Metals; Computer & Electronic Products; Chemical Products; Food, Beverage & Tobacco Products; and Electrical Equipment, Appliances & Components.

Customers’ Inventories

%

Reporting

%Too

High

%About

Right

%Too

Low

Net

Index

Mar 2022

69

7.3

53.6

39.1

-31.8

34.1

Feb 2022

76

8.5

46.7

44.8

-36.3

31.8

Jan 2022

74

8.6

48.9

42.5

-33.9

33.0

Dec 2021

77

8.7

46.1

45.2

-36.5

31.7

Prices 

The ISM® Prices Index registered 87.1 percent, up 11.5 percentage points compared to the February reading of 75.6 percent, indicating raw materials prices increased for the 22nd consecutive month, at a notably faster rate in March. This is the biggest month-over-month increase since a 12.2-percentage point gain (to 77.6 percent) in December 2020; the Prices Index has since exceeded 70 percent in 15 out of 16 months. The index has been above 60 percent for 19 months in a row. “Aluminum, packaging materials, copper, electrical and electronic components, petroleum products, vegetable oils, lumber and paper products, freight, rubber based products, and stainless steel remain at elevated prices, thanks to product scarcity and high demand. A reversal of steel product price declines and the dramatic increase in energy costs has led to a resumption of overall prices growth, reversing what appeared to be a post-omicron softening,” says Fiore. A Prices Index above 52.6 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Producer Price Index for Intermediate Materials.

In March, all 18 industries reported paying increased prices for raw materials, in the following order: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Paper Products; Printing & Related Support Activities; Textile Mills; Primary Metals; Transportation Equipment; Machinery; Plastics & Rubber Products; Chemical Products; Miscellaneous Manufacturing; Computer & Electronic Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Furniture & Related Products; Petroleum & Coal Products; and Wood Products. 

Prices

%Higher

%Same

%Lower

Net

Index

Mar 2022

75.1

24.0

0.9

+74.2

87.1

Feb 2022

56.2

38.8

5.0

+51.2

75.6

Jan 2022

58.7

34.8

6.5

+52.2

76.1

Dec 2021

47.4

41.6

11.0

+36.4

68.2

Backlog of OrdersISM®‘s Backlog of Orders Index registered 60 percent in March, a 5-percentage point decrease compared to the 65 percent reported in February, indicating order backlogs expanded for the 21st straight month. “Backlogs expanded at a slower rate in March, indicating that incoming business remains high, with output still below its maximum potential,” says Fiore. Of the six big manufacturing sectors, five reported expanded backlogs: Food, Beverage & Tobacco Products; Transportation Equipment; Computer & Electronic Products; Chemical Products; and Machinery.

Eleven industries reported growth in order backlogs in March, in the following order: Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Textile Mills; Transportation Equipment; Fabricated Metal Products; Computer & Electronic Products; Paper Products; Plastics & Rubber Products; Chemical Products; Machinery; and Miscellaneous Manufacturing. The two industries reporting lower backlogs in March are: Nonmetallic Mineral Products; and Primary Metals.

Backlog of Orders

%

Reporting

%Higher

%Same

%Lower

Net

Index

Mar 2022

92

29.8

60.4

9.8

+20.0

60.0

Feb 2022

92

39.0

52.0

9.0

+30.0

65.0

Jan 2022

93

24.7

63.5

11.8

+12.9

56.4

Dec 2021

90

38.0

49.7

12.3

+25.7

62.8

New Export Orders 

ISM®‘s New Export Orders Index registered 53.2 percent in March, down 3.9 percentage points compared to the February reading of 57.1 percent. “The New Export Orders Index grew for the 21st consecutive month, at a slower rate in March. Of the six big industry sectors, three (Computer & Electronic Products; Transportation Equipment; and Food, Beverage & Tobacco Products) expanded,” says Fiore.

The six industries reporting growth in new export orders in March — in the following order — are: Wood Products; Miscellaneous Manufacturing; Computer & Electronic Products; Transportation Equipment; Food, Beverage & Tobacco Products; and Fabricated Metal Products. The only industry reporting a decrease in new export orders in March is Machinery. Ten industries reported no change in exports in March as compared to February.

New Export Orders

%

Reporting

%Higher

%Same

%Lower

Net

Index

Mar 2022

72

14.3

77.7

8.0

+6.3

53.2

Feb 2022

74

17.0

80.3

2.7

+14.3

57.1

Jan 2022

73

12.5

82.3

5.2

+7.3

53.7

Dec 2021

75

10.8

85.5

3.7

+7.1

53.6

ImportsISM®‘s Imports Index registered 51.8 percent in March, a decrease of 3.6 percentage points compared to February’s figure of 55.4 percent. “Imports expanded in March, but the index posted its lowest reading since it contracted (49.1 percent) in October 2021. Fundamental demand remains strong, but satisfying that demand has been complicated by COVID-19 issues in Asia. Imports will likely continue to be challenged through the first half of 2022, due to the pandemic and labor management negotiations at West Coast ports,” says Fiore.

The seven industries reporting growth in imports in March — in the following order — are: Furniture & Related Products; Nonmetallic Mineral Products; Transportation Equipment; Food, Beverage & Tobacco Products; Computer & Electronic Products; Electrical Equipment, Appliances & Components; and Machinery. Four industries — Paper Products; Plastics & Rubber Products; Miscellaneous Manufacturing; and Chemical Products — reported lower volumes of imports in March. Seven industries reported no change in imports in March.

Imports

%

Reporting

%Higher

%Same

%Lower

Net

Index

Mar 2022

83

15.2

73.1

11.7

+3.5

51.8

Feb 2022

83

18.1

74.7

7.2

+10.9

55.4

Jan 2022

84

18.4

73.4

8.2

+10.2

55.1

Dec 2021

83

17.9

71.8

10.3

+7.6

53.8

The Supplier Deliveries, Customers’ Inventories, Prices, Backlog of Orders, New Export Orders, and Imports indexes do not meet the accepted criteria for seasonal adjustments.

Buying PolicyThe average commitment lead time for Capital Expenditures in March was 172 days, a decrease of one day compared to February. CapEx lead times have increased in nine of the last 12 months, for a net gain of 25 days since April 2021 (147 days). Average lead time in March for Production Materials decreased by one day, to 96 days. Average lead time for Maintenance, Repair and Operating (MRO) Supplies decreased two days, to 48 days.

Percent Reporting

Capital Expenditures

Hand-to-

Mouth

30 Days

60 Days

90 Days

6 Months

1 Year+

Average

Days

Mar 2022

18

3

8

14

29

28

172

Feb 2022

19

5

7

11

29

29

173

Jan 2022

21

4

6

13

29

27

167

Dec 2021

21

3

11

11

29

25

161

Percent Reporting

Production Materials

Hand-to-

Mouth

30 Days

60 Days

90 Days

6 Months

1 Year+

Average

Days

Mar 2022

8

21

23

26

15

7

96

Feb 2022

11

21

21

24

15

8

97

Jan 2022

9

23

23

24

13

8

95

Dec 2021

10

21

24

24

15

6

91

Percent Reporting

MRO Supplies

Hand-to-

Mouth

30 Days

60 Days

90 Days

6 Months

1 Year+

Average

Days

Mar 2022

24

33

22

16

5

48

Feb 2022

27

36

18

12

5

2

50

Jan 2022

28

36

18

13

4

1

46

Dec 2021

26

34

21

14

4

1

48

About This ReportDO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report’s information reflects the entire U.S., while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of March 2022.

The data presented herein is obtained from a survey of manufacturing supply executives based on information they have collected within their respective organizations. ISM® makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.

Data and Method of PresentationThe Manufacturing ISM® Report On Business® is based on data compiled from purchasing and supply executives nationwide. The composition of the Manufacturing Business Survey Committee is stratified according to the North American Industry Classification System (NAICS) and each of the following NAICS-based industry’s contribution to gross domestic product (GDP): Food, Beverage & Tobacco Products; Textile Mills; Apparel, Leather & Allied Products; Wood Products; Paper Products; Printing & Related Support Activities; Petroleum & Coal Products; Chemical Products; Plastics & Rubber Products; Nonmetallic Mineral Products; Primary Metals; Fabricated Metal Products; Machinery; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Furniture & Related Products; and Miscellaneous Manufacturing (products such as medical equipment and supplies, jewelry, sporting goods, toys and office supplies). The data are weighted based on each industry’s contribution to GDP. According to the BEA estimates for 2020 GDP (released December 22, 2021), the six largest manufacturing subsectors are: Computer & Electronic Products; Chemical Products; Transportation Equipment; Petroleum & Coal Products; Food, Beverage & Tobacco Products; and Machinery. Beginning in February 2018 with January 2018 data, computation of the indexes is accomplished utilizing unrounded numbers.

Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (New Orders, Backlog of Orders, New Export Orders, Imports, Production, Supplier Deliveries, Inventories, Customers’ Inventories, Employment and Prices), this report shows the percentage reporting each response, the net difference between the number of responses in the positive economic direction (higher, better and slower for Supplier Deliveries) and the negative economic direction (lower, worse and faster for Supplier Deliveries), and the diffusion index. Responses are raw data and are never changed. The diffusion index includes the percent of positive responses plus one-half of those responding the same (considered positive).

The resulting single index number for those meeting the criteria for seasonal adjustments (Manufacturing PMI®, New Orders, Production, Employment and Inventories) is then seasonally adjusted to allow for the effects of repetitive intra-year variations resulting primarily from normal differences in weather conditions, various institutional arrangements, and differences attributable to non-moveable holidays. All seasonal adjustment factors are subject annually to relatively minor changes when conditions warrant them. The Manufacturing PMI® is a composite index based on the diffusion indexes of five of the indexes with equal weights: New Orders (seasonally adjusted), Production (seasonally adjusted), Employment (seasonally adjusted), Supplier Deliveries, and Inventories (seasonally adjusted).

Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. A Manufacturing PMI® reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally declining. A Manufacturing PMI® above 48.7 percent, over a period of time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 48.7 percent, it is generally declining. The distance from 50 percent or 48.7 percent is indicative of the extent of the expansion or decline. With some of the indicators within this report, ISM® has indicated the departure point between expansion and decline of comparable government series, as determined by regression analysis. The Manufacturing ISM® Report On Business® survey is sent out to Manufacturing Business Survey Committee respondents the first part of each month. Respondents are asked to report on information for the current month for U.S. operations only. ISM® receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses to give the most accurate picture of current business activity. ISM® then compiles the report for release on the first business day of the following month.

The industries reporting growth, as indicated in the Manufacturing ISM® Report On Business® monthly report, are listed in the order of most growth to least growth. For the industries reporting contraction or decreases, those are listed in the order of the highest level of contraction/decrease to the least level of contraction/decrease.

Responses to Buying Policy reflect the percent reporting the current month’s lead time, the approximate weighted number of days ahead for which commitments are made for Capital Expenditures; Production Materials; and Maintenance, Repair and Operating (MRO) Supplies, expressed as hand-to-mouth (five days), 30 days, 60 days, 90 days, six months (180 days), a year or more (360 days), and the weighted average number of days. These responses are raw data, never revised, and not seasonally adjusted.

ISM ROB ContentThe Institute for Supply Management® (“ISM”) Report On Business® (both Manufacturing and Non-Manufacturing) (“ISM ROB”) contains information, text, files, images, video, sounds, musical works, works of authorship, applications, and any other materials or content (collectively, “Content”) of ISM (“ISM ROB Content”). ISM ROB Content is protected by copyright, trademark, trade secret, and other laws, and as between you and ISM, ISM owns and retains all rights in the ISM ROB Content. ISM hereby grants you a limited, revocable, nonsublicensable license to access and display on your individual device the ISM ROB Content (excluding any software code) solely for your personal, non-commercial use. The ISM ROB Content shall also contain Content of users and other ISM licensors. Except as provided herein or as explicitly allowed in writing by ISM, you shall not copy, download, stream, capture, reproduce, duplicate, archive, upload, modify, translate, publish, broadcast, transmit, retransmit, distribute, perform, display, sell, or otherwise use any ISM ROB Content.

Except as explicitly and expressly permitted by ISM, you are strictly prohibited from creating works or materials (including but not limited to tables, charts, data streams, time-series variables, fonts, icons, link buttons, wallpaper, desktop themes, online postcards, montages, mashups and similar videos, greeting cards, and unlicensed merchandise) that derive from or are based on the ISM ROB Content. This prohibition applies regardless of whether the derivative works or materials are sold, bartered, or given away. You shall not either directly or through the use of any device, software, internet site, web-based service, or other means remove, alter, bypass, avoid, interfere with, or circumvent any copyright, trademark, or other proprietary notices marked on the Content or any digital rights management mechanism, device, or other content protection or access control measure associated with the Content including geo-filtering mechanisms. Without prior written authorization from ISM, you shall not build a business utilizing the Content, whether or not for profit.

You shall not create, recreate, distribute, incorporate in other work, or advertise an index of any portion of the Content unless you receive prior written authorization from ISM. Requests for permission to reproduce or distribute ISM ROB Content can be made by contacting in writing at: ISM Research, Institute for Supply Management, 309 West Elliot Road, Suite 113, Tempe, Arizona 85284-1556, or by emailing kcahill@ismworld.org. Subject: Content Request.

ISM shall not have any liability, duty, or obligation for or relating to the ISM ROB Content or other information contained herein, any errors, inaccuracies, omissions or delays in providing any ISM ROB Content, or for any actions taken in reliance thereon. In no event shall ISM be liable for any special, incidental, or consequential damages, arising out of the use of the ISM ROB. Report On Business®, PMI®, and NMI® are registered trademarks of Institute for Supply Management®. Institute for Supply Management® and ISM® are registered trademarks of Institute for Supply Management, Inc.

About Institute for Supply Management®Institute for Supply Management® (ISM®) serves supply management professionals in more than 90 countries. Its 50,000 members around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 as the first supply management institute in the world, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM leads the profession through the ISM Report On Business®, its highly regarded certification programs and the ISM Advance Digital Platform. This report has been issued by the association since 1931, except for a four-year interruption during World War II.

The full text version of the Manufacturing ISM® Report On Business® is posted on ISM®‘s website at www.ismrob.org on the first business day* of every month after 10:00 a.m. ET.

The next Manufacturing ISM® Report On Business® featuring April 2022 data will be released at 10:00 a.m. ET on Monday, May 2, 2022.

*Unless the New York Stock Exchange is closed.

Contact:

Kristina Cahill

 

Report On Business® Analyst

 

ISM®, ROB/Research Manager

 

Tempe, Arizona

 

+1 480.455.5910

 

Email: kcahill@ismworld.org

SOURCE Institute for Supply Management

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Würth Revcar Leases Former Home Shopping Network Building in Roanoke, VA

FOR IMMEDIATE RELEASE

Indianapolis, IN, USA (March 22, 2022) – Würth Revcar Fasteners, a Würth Industry North America company, announced today that it has fully leased the building at 1 Avery Row in Roanoke, Virginia. The distribution warehouse building, consisting of 387,558 square feet, had been occupied by the Home Shopping Network for the past 30 years. The building will be the single largest Würth facility in North America and serve as the new headquarters and primary distribution center for Würth Revcar – Industrial Division. The renovated space is expected to open in the third quarter of 2022. 

Portal | Würth Group

Revcar Fasteners was founded in Roanoke in 1969 and has been headquartered in the Roanoke Valley since. The Würth Group, the world’s largest industrial distributor and leader of innovative supply chain solutions, acquired the company in 1996 as part of the Würth Industry North America network of companies. The company is a full-line/full-service assembly component supplier and an approved Level One Fastener Distributor to many US Navy and military accounts worldwide. Würth Revcar’s deep ties to the region guided the company as they conducted a thorough location search. Their initial investment is expected to be in excess of $5 million in office renovations, sustainable energy solutions, and warehouse infrastructure, with subsequent investments in warehouse automation and equipment to exceed the first phase of investment.

“We are thrilled to relocate Würth Revcar to a new, larger headquarters in Roanoke,” shared Dan Hill, chief executive officer of Würth Industry North America, “This move represents another significant milestone for our fast-growing organization. The new facility supports our customer-centric distribution strategy in North America while accommodating our growing team. As a family-owned company with a 75-year history, we are honored to play a role in the growth of the Roanoke area through our new building.”

“We are excited about the opportunity for a world-class headquarters that will allow us to attract, retain, and develop top talent in the same location as a highly efficient, large-scale distribution facility,” said Chapman Revercomb, managing director of Würth Revcar Fasteners. “We expect to add 50 office and warehousing positions as we ramp up operations in the new facility,” he added.

The parties to the transaction express their appreciation to the Roanoke Regional Partnership and Roanoke County Economic Development for their role in this transaction and fostering a business environment that attracts new development and retention of Roanoke-based businesses.

About Würth Industry North America

Würth Industry North America (WINA) is a $1+ billion division of the Würth Group, the world’s largest industrial distributor. Within the Würth Group, founded in 1945, WINA is a privately held, family-owned Würth Industry North America www.wurthindustry.com business that believes satisfying customers is not enough. They inspire customers by offering solutions and innovations that move their business forward. WINA is comprised of strategically aligned, customer-centric market divisions, including Industrial, MRO, Safety, & Metalworking, Construction, and Specialty, that deliver better planning, parts management, and inventory accuracy. As global supply chain solution drivers, WINA offers superior security through its products and services, including additive manufacturing, digital inventory, engineering assistance, quality control, inventory management, vending, safety supplies, kitting and assembly, structural fasteners, and MRO/industrial supplies. With more than 420,000 parts in their international supply chain, WINA provides each customer with extensive global reach and local knowledge from deep investment in its network of distribution centers across the United States, Canada, Mexico, and Brazil. The company is the creator of the global series Würth Knowing, the industry’s first fastener education YouTube series. For more information on Würth Industry North America, visit wurthindustry.com.

Würth Industry North America key facts:

• Industry solution drivers with both a global reach and local knowledge through a strategic network of distribution centers across North America and Brazil

• 2,300+ employees to keep you working one step ahead

• More than 420,000 fastener, MRO, safety and PPE, metalworking, and 3D printing products, so you have the right parts with exceptional value

• Part of the Würth Group ($20B+), which operates 400 companies in more than 80 countries and has more than 83,000 employees

Contact:

Molly Hauer | molly.hauer@wurthindustry.com

+1 612.270.7613


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Fabory Masters in Fasteners and Digital Experience

Pronunciation: (Fay-Bor-Eee)

Fastener News Desk highlights digital transformation, eCommerce, and new technology as it relates to the fastener industry.

FND had the opportunity to speak with Fabory’s, Richard Rijsterborgh, Sr. E-commerce Manager about his experience in launching the new Fabory ecommerce webshop. FND recently reported on two strategic acquisitions from Fabory and decided to look a little closer at their business and growth strategies. We learned that the company had recently re-launched their ecommerce site and were seeing excellent results from their digital investments. 

Guest: Richard Rijsterborgh, Sr. E-commerce Manager at Fabory Group

Fasteners, eCommerce

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