Positive Economic Trends Bode Well for Manufacturers, According to Keynote on Day Two of IQMS Pinnacle User Conference
Leading economic analyst from Armada Corporate Intelligence examined what US and international trends in economic growth and spending mean for manufacturers
LAS VEGAS, N.V. – April 7, 2016 – The US and international economies are having some impact on the demand for manufactured goods, but positive trends—including a spike in future orders—point to growth in the manufacturing sector. That was theme of the keynote on Day Two of the Pinnacle conference for customers of IQMS, a leading manufacturing ERP software and manufacturing execution system (MES) authority. The keynote session, “Five Reasons to Set Your Hair on Fire and Five Directions to Chill,” was delivered by Dr. Christopher Kuehl, co-founder, managing director, and the lead economic analyst at Armada Corporate Intelligence.
IQMS’ Pinnacle user conference runs April 5-7, 2016 at Caesar’s Palace in Las Vegas. The event brings together manufacturing executives, enterprise resource planning (ERP) technical experts, and industry thought leaders in 40 sessions examining manufacturing technology and business best practices, as well as how to get the most of IQMS software.
Economic Trends Impacting Manufacturers
Kuehl began his keynote by examining topics that are top of mind with manufacturers, including the changing role of China, economic developments in the US and internationally, retail and stock market trends, and oil prices. He then dove into several trends that bode well for manufacturers.
Most of the key indicators, Kuehl said—from housing to jobs to some manufacturing numbers—are either trending at slightly positive direction, or at least they are stable. Notably, industrial production numbers are now better than they were before the recession, particularly in areas, such as automotive, farm equipment, and healthcare manufacturing. Moreover, the Institute for Supply Management (ISM) Manufacturing New Orders Index is going up, which he explained, is a good sign for two to three months down the line.
Kuehl then observed that low oil prices have allowed consumers to save a little money, which they are now starting to spend. At the same time, the numbers for job growth have been consistent, and housing starts, especially for rental buildings, are up, he stated. The National Association for Credit Management also is reporting improved numbers, he said.
Kuehl wrapped up by noting that while the overall US economy is growing at 2.1%, the performance of individual states can vary widely, with some experience growth of up to 5% or 7%. In this context, Kuehl advised manufacturers to look beyond national trends when making decisions and also think locally about their city and state.
IQMS uniquely combines ERP and manufacturing execution system (MES) functionality to give manufacturers a comprehensive end-to-end suite for running the business, backed by the real-time performance and scalability that companies demand. Developed specifically for mid-market repetitive, discrete and batch process manufacturers, IQMS provides robust capabilities for addressing strict customer and regulatory certification and compliance. IQMS achieves this by delivering traditional ERP functionality for accounting, sales orders, material requirements, inventory and purchasing, plus extended native features for CRM, human resources, production scheduling, shop floor control, warehouse and quality modules. With offices across North America, Europe and Asia, IQMS serves manufacturers around the world. For more information, please visit https://www.iqms.com.