Industrial + Specialty Printing

Signs of economic improvement abound.

By Gail Flower

Signs of economic improvement abound. According to recent reports, the job market looks stronger in 2011. For example, private employers added 187,000 jobs in January according to payroll processor ADP.

In the manufacturing sector, economic activity expanded in January for the 18th consecutive month, and the overall economy grew for the 20th consecutive month said supply managers in the Manufacturing ISM Report on Business.

“The manufacturing sector grew at a faster rate in January as the PMI [Purchasing Managers Index] registered 60.8%, which is its highest level since May 2004 when the index registered 61.4%. The continuing strong performance is highlighted as January is also the sixth consecutive month of month-over-month growth in the sector. New orders and production continue to be strong, and employment rose above 60% for the first time since May 2004. Global demand is driving commodity prices higher, particularly for energy, metals, and chemicals,” says Norbert J. Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.

Bannockburn, IL-based IPC (Association Connecting Electronics Industries) announced an improved picture for future growth. In the printed circuit board industry, rigid board shipments were up 10.6% and bookings decreased 0.8% in December 2010 from December 2009. Year to date, rigid PCB shipments were up 17.8%, and bookings have grown 20.9%. Flexible-circuit shipments in December were up a whopping 50.9%, and bookings grew 65.3% compared to December 2009. Year to date, flexible-circuit shipments increased 16.0%, and bookings were up 22.3%. The North American flexible-circuit book-to-bill ratio in December climbed back to 0.97%.

At the Signage and Graphics Summit (www.signageandgraphics.com) in January 2011, market forecaster Brian Beaulieu of ITR (www.itreconomics.com) presented a positive outlook in his keynote, Business Strategies for Tomorrow’s Economy, during which he noted that corporate profits are growing and that “it’s a good time to buy something.” Many types of businesses go through predictable cyclical growth and expansion to decline stages, he explained. For each phase, he gave management objectives as to how to handle recessions, early recovery cycles, late recovery, and growth periods.