Posts for A[ril 25, 2011

UMA MEMBER COMPANIES IN THE NEWS:
MERIT MEDICAL ANNOUNCES 5-FOR-4 FORWARD STOCK SPLIT
Utah Business

Merit Medical Systems, Inc. (NASDAQ: MMSI), a leading manufacturer and marketer of proprietary disposable devices used primarily in cardiology, radiology and endoscopy, announced that its Board of Directors has approved a five-for-four forward stock split of the Company’s Common Stock, to be effected in the form of a stock dividend of one share of the Company’s Common Stock for every four shares outstanding. The record date for the stock split is May 2, 2011.
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June 6 , 2011

Last week produced a series of reports showing weakness in the manufacturing sector and the overall economy. For those following economic indicators of late, these data were not a surprise. Since the first quarter of this year, economic activity has slowed down significantly, most notably in manufacturing, which had experienced healthy increases prior to that. Here are some of the takeaways from the data, as I see it:

Supply disruptions stemming from Japan continue to be a challenge for manufacturers. This can be seen most clearly in the automotive sector. New factory orders in transportation fell dramatically in April, according to both the Census Bureau and the Chicago Federal Reserve Bank. The Bureau of Labor Statistics also saw a decline of 8,800 jobs in the sector in May.
Rising raw material and energy prices are taking a toll on the economy. Consumers and businesses alike are feeling the squeeze of higher costs, with consumer confidence falling and manufacturers citing high raw material prices as a major concern. When you look at the sectors that lost employment, such as food manufacturing, leisure and hospitality, or retail trade, this becomes even more clear.
With all of that said, the manufacturing sector continues to grow, albeit much more slowly than in previous months. The ISM Purchasing Managers' Index fell dramatically from 60.4 in April to 53.5 in May, which was a much steeper decline than many economists had expected. This decline was led by decreases in new order and shipments, particularly in transportation equipment but also in other areas. Nonetheless, the indicator is still above 50, suggesting a growing sector. Moreover, a number of recent surveys, including those from the regional Federal Reserve banks and RSM McGladrey, have noted positive expectations regarding future production. (Note that the NAM/Industry Week Survey of Manufacturers, which will be released next week, also observes a positive business outlook.)
Of course, the economy remains a top concern for many Americans, and even for those manufacturers who are optimistic about the general outlook, there remains a degree of uncertainty moving forward. Accordingly, it is important for policymakers to pursue policies that help to promote economic growth, open new markets for our goods and services, and provide a fertile business environment that will allow manufacturing firms to flourish.

This week, there will be a number of indicators that will gauge the health of manufacturing and the economy as a whole. On Tuesday, the Bureau of Labor Statistics will release job openings and labor turnover data, following on the heels of last week's employment numbers. On Wednesday, the Federal Reserve Board will release its Beige Book, which examines the economic health of each of its regions. To a certain extent, we have seen previews of this report already with a number of regional surveys, including ones from the Chicago and Dallas Federal Reserve Banks last week (and discussed below). Lastly, on Thursday, we will get new trade statistics, which will hopefully continue to highlight a current strength in manufacturing – the exports of our products.

Chad Moutray
Chief Economist
National Association of Manufacturers

RAILROAD DEMAND DRIVING FOUNDRY RESTART

Quick Manufacturing News
American Railcar Industries Inc. will restart its Ohio Castings operation in Alliance, OH, citing an increase in orders for new railcars. The steel foundry produces castings for freight-car side frames, bolsters, couplers, and yokes for the North American market. Click to continue

MEXICO MORE POPULAR THAN U.S. FOR NEAR-SHORING

Quick Manufacturing News
According to a recent poll of senior executives by AlixPartners, a global business advisory firm, 63% chose Mexico as the most attractive locale for re-sourcing manufacturing operations closer to the U.S. market. Click to continue