New Data Pinpoints Hot Sectors

The data provides crucial evidence related to the future rate of expansion in the manufacturing sector, one of the top five vertical markets in which solution providers operate. More importantly, the data indicates which specific industries within the manufacturing sector are seeing the strongest growth, allowing channel players to better target their business strategies. In CRN's view, industries such as transportation and chemicals should be particularly attractive for solution providers in coming months.

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JOHN ROBERTS

Can be reached at (7320 919-1530 or via e-mail at [email protected].

In its February report, the ISM, a 45,000-member trade organization of purchasing managers and buyers, said the manufacturing sector,long a laggard in the U.S. economic recovery,had achieved "sustainable momentum," with all 20 industries covered in the report showing growth.

New orders for manufactured goods increased for the 10th straight month in February.

What's more, 18 of the 20 industries surveyed,including chemicals, textiles, paper, petroleum and transportation,saw gains. Fourteen of the industries reported higher order backlogs, including rubber, plastic, paper, fabricated metals, chemicals, transportation and wood products. This is a sign that existing production is insufficient to meet growing demand and a harbinger of future expansion in business operations and employment.

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However, recent government data showing persistently slow employment growth have some economists questioning whether the overall pace of economic growth will slow down in the second half of this year. This, in turn, could jeopardize the nascent recovery in the manufacturing sector and leave solution providers with a much tougher sales environment.

What's your opinion? Let me know via phone at (732) 919-1530 or e-mail at [email protected].