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Economic Growth Continues In 2014; Manufacturing Growth Expected in 2014; Revenue to Increase 4.4%; Capital Expenditures to Increase 8.0%; Capacity Utilization Currently at 80.3%; Non-Manufacturing Growth Projected in 2014; Revenue to Increase 3.6%;
Date:12/10/2013

manufacturing increased 5.2 percent in 2013 as 42 percent of purchasing and supply executives reported an average capacity increase of 15.9 percent, 14 percent reported decreases averaging 11.1 percent, and 44 percent reported no change. This compares to a predicted increase of 6.7 percent for 2013 made in April 2013. Expectations for 2014 are for an increase of 6.3 percent. The 13 industries reporting achieving an increase in production capacity in 2013 — listed in order — are: Petroleum & Coal Products; Textile Mills; Food, Beverage & Tobacco Products; Fabricated Metal Products; Plastics & Rubber Products; Wood Products; Chemical Products; Machinery; Primary Metals; Transportation Equipment; Electrical Equipment, Appliances & Components; Furniture & Related Products; and Paper Products. Manufacturing Production CapacityFor 2013For 2013For 2014Predicted

April 2013

Magnitude
of Change

Reported
Dec 2013

Magnitude
of Change

Predicted

Dec 2013

Magnitude
of ChangeHigher

41%

+18.8%

42%

+15.9%

46%

+15.6%Same

53%

NA

44%

NA

46%

NALower

6%

-18.7%

14%

-11.1%

8%

-9.2%Net Average+6.7%+5.2%+6.3%The principal means of achieving increases in production capacity in 2013 were (in order of importance):

  1. Additional personnel (permanent, temporary or contract)
  2. More hours worked with existing personnel
  3. Replaced equipment with technically advanced equipment
  4. Additional plant and/or equipment.

Non-Manufacturing
The capacity to produce products or provide services in the non-manufacturing sector increased 2.3 percent during 2013. This compares to the 3.2 percent increase reported in December 2012 for the year 2012, and is the same as what was predicted in
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SOURCE Institute for Supply Management
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