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FROM THE EDITOR: MANUFACTURERS HAVE SOLID GROWTH PROSPECTS IN 2005.

Article Excerpt
Manufacturing Automation firmly believes that manufacturers in a wide range of industries have key opportunities to enjoy sold growth next year, building on the momentum achieved this year. While there are concerns in the manufacturing community about prices and inflation, energy price hikes, economic conditions, geopolitical issues and the ramifications of war, and labor, benefits, and health care costs, manufacturers can generate solid growth and boost their bottom line by focusing on achieving further operational efficiencies. Key improvements in the performance of manufacturers can be significantly driven by thoughtfully planned implementation of automation technology that enhances both plant floor and supply chain management operations.

The 68th Semiannual Economic Forecast, issued by the Business Survey Committee of the Institute For Supply Management(tm) (ISM, Tempe, AZ, 800-888-6276) and released on December 8, 2004, indicates that manufacturing purchasing and supply executives are more optimistic about 2005 than they were one year ago for 2004. Economic growth is expected to continue at a relatively strong level in next year.

75% of survey respondents expect revenues to be greater in 2005 than in 2004. The panel of manufacturing purchasing and supply executives expects a 7.8% net increase in overall revenues for 2005, compared to an increase of 8.3% reported for 2004. Manufacturing industries expecting the greatest improvement over 2004 (i.e., predicting growth greater than 7.8% in nominal revenues in 2005) include miscellaneous (e.g., jewelry, toys, sporting goods, musical instruments); glass, stone and aggregate; fabricated metals; primary metals; instruments and photographic equipment; transportation and equipment; apparel; and electronic components & equipment.

"Manufacturing purchasing and supply executives are optimistic about their organizations' prospects for the first half, and predict additional growth during the second half of 2005," stated Norbert J. Ore, C.P.M., chair of the ISM Manufacturing Business Survey Committee and group director, strategic sourcing and procurement, Georgia-Pacific Corporation. "While 2004 has been a particularly strong year overall, it has presented challenges with regard to inflation in manufacturing costs. At present, the sector continues to recover from major influences that stalled growth early in the millennium. Manufacturing seemingly...

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