A new report from the Institute for Supply Management (ISM) shows that, despite the high level of anxiety surrounding the budget sequester, the U.S. manufacturing sector expanded for the third straight month during February.
In fact, according to ISM's analysis, the industry grew faster in February than during any month since June 2011. The organization moved its factory activity index to 54.2, up from 53.1 in January.
In a press release, Daniel Meckstroth, chief economist of the Manufacturers Alliance for Productivity and Innovation, emphasized the significance of the ISM report.
"The index has been 54.2 or higher only about one-third of the time over the last 20 years," noted Meckstroth. "Clearly, the ISM report for February is very favorable and suggests that manufacturing activity last month was growing at a rapid pace."
At the same time, Meckstroth asserted that "some caution is appropriate." He explained that "February may be a euphoric period following the resolution of the fiscal cliff," but that, going forward, the economy would be challenged by the budget sequester and a potential government shutdown.
For this reason, shipping companies may not want to make any expensive equipment purchases at this time. However, the emergence of new opportunities may require a company to expand. Fortunately, implementing GPS fleet management software can offer a more flexible alternative to acquiring new trucks and hiring additional drivers.
By using a fleet tracking system to improve routing efficiency, a firm can simultaneously increase its operational capacity and identify opportunities to cut costs. GPS software can be especially helpful for companies that are looking to reduce payroll and fuel expenses.
Powered by Facebook Comments
- Data indicates uptick in domestic manufacturing activity
- GPS software may help shippers meet seasonal surge in demand for delivery services
- GPS software can help bus lines meet travel demand during holiday season
- Companies can retain their top drivers by supporting them with GPS software
- GPS software helps fleet managers do more with less