As a toolmaker, I find that one is always a little on edge not knowing the state of manufacturing. There is a constant rumour mill about the looming layoff or the coming slow down. If you give in to the fear-mongering and insecurity of the rumour mill, it can sometimes make the days seem longer than they have to be and add unnecessary worry about something you can’t control. Now, I am not saying that the state of manufacturing in North America isn’t something to worry about, because I do feel that the long term trends are worrisome, but I think arming yourself with information based on a sound resource may serve you better in being more productive and hopeful of the future than listening to rumours.
That’s what led me to look for any economic indicators that I could follow to give me a better understanding of the general direction of manufacturing in North America. Because if manufacturing is happening, that means tool and die makers and machinists are getting the job done!
What is this PMI?
The PMI factors in many things and I have an Investopedia link that will explain it better than I could, but it can be summarized like this: “…is an index of the prevailing direction of economic trends in the manufacturing and service sectors.” In a general sense, the index surveys 400 influential companies in the major manufacturing sectors on what their companies’ forecasted purchases are and the index is adjusted up or down based on that information. I feel having a quarterly outlook of the whole manufacturing sector can help me understand where the work may be going over the long term. I also find it helpful that there is solid unbiased information on whether the manufacturing sector is going up or down in a given geographic location. That along with unemployment numbers and the consumer index can provide a fairly informed understanding of the general state of North American manufacturing.
Purchasing Managers Definition
https://www.investopedia.com/terms/p/pmi.asp
Purchasing Managers Index
American Employment numbers
links to the official USA Government website.
Consumer Price Index
Link to Official Consumer Price Index.
Canadian Employment Numbers
Link to Official Canadian Government website.