This week, the Institute for Supply Management released its latest forecast showing continued economic growth across both manufacturing and non-manufacturing sectors.
Here’s what manufacturing executives expect for the rest of this year, focusing on food:
- Revenue. Nearly two-thirds of respondents expect revenues to be greater in 2017 compared to 2016, with 17 of the 18 industries (including food) reporting expectations of growth. Overall, the average forecast across all manufacturing is for revenue growth of 4.4%.
- Operating capacity. Manufacturing companies are currently operating at 82.5% capacity. Food is one of the 11 industries reporting operating capacity at or above average.
- Production capacity. Food is among the 15 industries expecting a production capacity increase this year. Overall, production capacity is expected to increase 3.3%, compared to 2.5% in 2016.
- Capital expenditures. Capital expenditure is expected to increase 5.2% this year, with 3 in 10 respondents predicting increases. Food did not make the list of industries expecting to spend more.
- Prices. Prices paid increased 2.2% in the first four months of this year, and 64% of respondents expect that trend to continue. The food industry reported paying more already and also expecting to pay more through the end of the year.
- Employment. Overall, manufacturing employment is expected to increase 1.3%, and food is one industry expecting employment to grow.
- Business revenues. The forecast predicts an overall net increase of 4.4% in business revenue, with food being one of the industries predicting growth.
As you can see, things are looking up!