Metalworking Index Up On the Return of Employees
Record hiring activity lifts overall metalworking index for October, with near-record readings in material prices and supply chain disruption.
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The Gardner Business Index: Metalworking increased four points month-to-month in October to end at 61.8. The increasing expansion in metalworking activity was caused by the largest single-month increase in the employment sub-index in the past decade.
Gardner Business Index: Metalworking
The Metalworking Index signals increasing expansion in business activity in October as employment jumped. Meanwhile, disrupted supply chains are severely impacting production and keeping backlogs elevated. Photo Credit: Gardner Intelligence
Obtaining materials from suppliers remains an issue, with the Index continuing to show near-record readings in material prices and supply chain disruption, as it has for the past several months. October represents the sixth month this year that data measuring prices received set a new record, as shops continue to pass their material costs to their customers. Over the past six months, production and new orders have slowed but not stopped their growth, while backlogs have shown constant growth. This suggests that the stockpile of unordered work built up over the course of this year has yet to be reckoned with.
Employment and Backlog Activity
The last half of 2021 saw month-on-month declines in employment activity, until October’s record increase. However, plenty of orders remain incomplete as supply chain issues continue to disrupt into the metalworking business. Photo Credit: Gardner Intelligence
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