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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

April 2013 of a 2.3 percent increase for 2013. For 2014, an increase of 1.9 percent is predicted. For 2013, 32 percent of non-manufacturing supply managers indicate increases averaging 8.8 percent, and 6 percent of respondents indicate decreases averaging 8 percent. Sixty-two percent see no change in their capacity. The 15 industries reporting increases in capacity in 2013 — listed in order — are: Professional, Scientific & Technical Services; Retail Trade; Management of Companies & Support Services; Other Services; Finance & Insurance; Real Estate, Rental & Leasing; Wholesale Trade; Health Care & Social Assistance; Transportation & Warehousing; Public Administration; Arts, Entertainment & Recreation; Accommodation & Food Services; Construction; Information; and Educational Services.Non-Manufacturing Production or Provision CapacityFor 2013For 2013For 2014Predicted

April 2013

Magnitude
of Change

Reported

Dec 2013

Magnitude
of Change

Predicted

Dec 2013

Magnitude
of ChangeHigher

25%

+9.6%

32%

+8.8%

33%

+7.8%Same

74%

NA

62%

NA

62%

NALower

1%

-7%

6%

-8%

5%

-14.8%Net Average+2.3%+2.3%+1.9%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. Additional plant and/or equipment
  4. More shifts worked with existing personnel.

CAPITAL EXPENDITURES — 2013 vs. 2012Manufacturing
Purchasing and supply managers report 2013 capital expenditures increased 12.3 percent on average when compared to 2012 levels. The actual expenditures for 2013 were well above survey respondents' previous e
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SOURCE Institute for Supply Management
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