Revenues are expected to increase in 17 out of 18 manufacturing industries next year. Capital expenditures are expected to increase by 5.2 per cent in the manufacturing sector next year after a 5.6-per cent increase in 2024.
The December 2024 ISM supply chain planning forecast expects US manufacturing growth to continue in 2025, with revenue projected to rise by 4.2 per cent and capital expenditures to rise by 5.2 per cent.
The sector’s employment is likely to grow by 0.8 per cent.
Raw material prices are projected to rise by 3 per cent during the first five months next year, with an overall 3-per cent rise for 2025.
In 2025, employment in the United States is expected to grow by 0.8 per cent in manufacturing sector, while labour and benefit costs are expected to increase by an average of 3.3 per cent. After projected growth in manufacturing in the first half (H1) next year, growth in H2 is projected to accelerate in manufacturing, an ISM release said.
Expectations for 2025 are positive in the manufacturing sector, as 60 per cent of survey respondents expect revenues to be higher in 2025 than in this year. The panel of purchasing and supply executives expects a 4.2-per cent net increase in overall revenues for 2025 compared to a 0.8 percentage point increase reported for 2024.
In the manufacturing sector, respondents reported the companies operating at 82.3 per cent of normal capacity, down by 0.5 percentage point from the 82.8 per cent reported in May 2024.
Respondents also expect the US dollar to strengthen against the currencies of seven major trading partners in 2025.
Prices paid for raw materials are projected to increase by 3 per cent during the first five months of the year, with an overall increase of 3 per cent for 2025. This equates to a reported 3-per cent increase in raw materials prices in 2024.
Production capacity in manufacturing increased by 1.7 per cent in 2024, as 28 per cent of purchasing and supply executives reported an average capacity increase of 10.6 per cent, 12 per cent reported an average decrease of 9.7 per cent, and 60 per cent reported no change.
Survey responses indicate executives expect increases in new export orders for H1 2025. Of the 74 per cent of respondents who indicated their companies track export activity, 38 per cent predict an increase (35 per cent moderate and 3 per cent substantial) over the next six months.
Fourteen per cent of respondents predict a decrease (14 per cent moderate and 0 per cent substantial) in their exports, and 48 per cent anticipate no change in exports over the next six months.
Respondents expect increases in imports in H1 2025. Of the 87 per cent of purchasers who reported that their companies import materials, 30 per cent predict an increase over the next six months (26 per cent moderate and 4 per cent substantial), while 21 per cent predict a decrease (20 per cent moderate and 1 per cent substantial).
The remaining 49 per cent of survey respondents expect no change in imports in H1 2025.
Compared to the outlook for 2024 reported in December 2023, survey respondents this year are more optimistic about the outlook for 2025. Forty-three per cent of respondents believe 2025 will be better than 2024.
Forty-two per cent of respondents believe 2025 will be the same as 2024, and 15 per cent believe 2025 will be worse than 2024.
Fibre2Fashion News Desk (DS)
