Board Converting News, October 11, 2021

ISM: Manufacturing (CONT’D FROM PAGE 8)

Board Converting NEWS INTERNET DIRECTORY

percent, up 3.9 percentage points from the August figure of 69.5 percent. The Inventories Index registered 55.6 per- cent, 1.4 percentage points higher than the August reading of 54.2 percent. The New Export Orders Index registered 53.4 percent, a decrease of 3.2 percentage points com- pared to the August reading of 56.6 percent. The Imports Index registered 54.9 percent, an 0.6-percentage point in- crease from the August reading of 54.3 percent.” Hurdles To Meet Expanding Demand “Business Survey Committee panelists reported that their companies and suppliers continue to deal with an unprecedented number of hurdles to meet increasing de- mand. All segments of the manufacturing economy are im- pacted by record-long raw materials lead times, continued shortages of critical materials, rising commodities prices and difficulties in transporting products. Global pandem- ic-related issues — worker absenteeism, short-term shut- downs due to parts shortages, difficulties in filling open positions and overseas supply chain problems — continue to limit manufacturing growth potential. However, optimis- tic panel sentiment remains strong, with three positive growth comments for every cautious comment. Panelists are fully focused on supply chain issues in order to re- spond to the ongoing high levels of demand. “Demand expanded, with the (1) New Orders Index growing, supported by continued expansion of the New Export Orders Index, the (2) Customers’ Inventories Index remaining at very low levels and the (3) Backlog of Orders Index staying at a very high level. Consumption (measured by the Production and Employment indexes) grew slightly during the period, with a combined 0.6-percentage point increase to the Manufacturing PMI® calculation. The Em- ployment Index returned to expansion after one month of contraction, but hiring difficulties at panelists’ companies show no significant signs of abating. Inputs — expressed as supplier deliveries, inventories, and imports — contin- ued to support input-driven constraints to production ex- pansion, at higher rates compared to August. “The Supplier Deliveries Index reversed a recent pat- tern of softening, while the Inventories Index continued to expand faster due to work-in-process inventory being held longer because of key part shortages, as well as more fin- ished goods inventory being held due to downstream cus- tomer issues. The Prices Index expanded for the 16th con- secutive month, at a faster rate in September, indicating continued supplier pricing power and scarcity of supply chain goods. “All of the six biggest manufacturing industries — Pe- troleum & Coal Products; Computer & Electronic Products; Chemical Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; and Transportation Equipment, — registered moderate to strong growth in September. “Manufacturing performed well for the 16th straight month, with demand, consumption and inputs registering month-over-month growth, in spite of continuing unprece-

THE HAIRE GROUP www.hairegroup.com

Haire Group is the premier provider of new machinery for the corrugated industry. As the exclusive US & Canadian agent for one of the largest machinery manufacturers in the world, Haire Group is able to pair clients with the best machinery solutions for the best value to meet their spe- cific needs. As an operating partner of the US-based DFA Technical Support Center (a joint venture of Haire Group and Dong Fang), Haire Group delivers top-notch 24/7 pro- fessional, reliable service and support, maximizing quality and uptime. Additionally, Haire Group has been the indus- try’s #1 pre-owned machinery broker and plant equipment appraiser since 1976. HarperLove is the leading provider of specialty adhesives, performance additives, and wet-strength resins to corru- gated packaging manufacturers. With the largest and most experienced field service and technical support team posi- tioned throughout the U.S. and Latin America, HarperLove has a long-standing reputation for providing outstanding service and delivering demonstrable performance improve- ments. HarperLove’s renowned services include not only innovative product development and custom product for- mulation, but also machine and process assessments, ad- hesive formula adjustments, machine tuning, detailed ser- vice reporting, and more. HARPERLOVE www.HarperLove.com

KIWIPLAN www.kiwiplan.com

Kiwiplan - premier worldwide software provider of enter- prise-wide, fully automatic solutions specifically for the cor- rugating and packaging industries. Kiwiplan’s Total Solution delivers comprehensive, seamless real-time flow of infor- mation from sales order management to dynamic total plant scheduling and inventory control through shipping.

MAROTECH INC. www.marotech.com

Manufacturer of Marotape®, Marotape®Plus, Marotape® FPT and MaroString™; hot melt coated tapes and strings used for reinforcement and easy-open features for pack- aging. Marotech Inc. also manufactures state-of-the-art dispensing and tape placement equipments to optimize the productivity of applying hot melt coated tapes in pack- aging.

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October 11, 2021

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