![]() Cost-control measures support the margins of the industry participants despite inflationary pressure. Easing supply chain issues should support manufacturing tools companies’ growth in 2023. economy, businesses expect continued softness in demand at least in the near term.Įasing Supply Chain Disruptions: While supply chain disruptions persist, especially related to the availability of electronic components, the situation has improved as evident from the ISM report’s Supplier Deliveries Index, which reflected faster deliveries for the eighth straight month in May. As recession fears loom large amid a slowdown in the U.S. The New Orders Index remained in contraction territory at 42.6%, declining 3.1 percentage points from the figure recorded in April. A figure less than 50% indicates a contraction in manufacturing activity. Per the Institute for Supply Management (ISM) report, in May, the Manufacturing PMI (Purchasing Manager’s Index) touched 46.9%, contracting for the seventh consecutive month. Persistent Weakness in the Manufacturing Sector: Continued weakness in the manufacturing sector signals a low-demand environment for the industry players. Talking about international operations, some industry players provide products and services to customers in North and South America, Japan, Europe, Canada, Asia and the Middle East.ģ Trends Shaping the Future of the Manufacturing Tools Industry The providers of electronic security solutions cater to commercial, retailers, government, financial and healthcare markets. The highly advanced tools are used in industrial, commercial, oil & gas, mining, automotive and other industries. Arc-welding products, robotic-welding packages, fume-extraction equipment, oxy-fuel cutting equipment, plasma cutters, healthcare solutions, electronic security solutions and other products are also produced by some tool-makers. The Zacks Manufacturing-Tools & Related Products industry comprises companies that develop and distribute hand and mechanics tools, hydraulic tools, engineered fastening systems, and heavy-lifting technology solutions. ![]() These factors point to a rosy outlook for the manufacturing tools industry despite some near-term softness from a slowdown in the manufacturing sector.Ĭompanies like Stanley Black & Decker SWK, Lincoln Electric LECO and Kennametal KMT are well positioned to take advantage of the buoyancy in the industry. Cost-control measures and investments in product innovation and development augur well for the industry’s growth. ![]() ![]() The Zacks Manufacturing-Tools & Related Products industry is poised to gain from improving supply chains, resulting in easier availability of raw materials and faster deliveries. ![]()
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