Oklahoma City

Fed survey reveals slowdown in manufacturing – Oklahoma City, Oklahoma

Oklahoma City, Oklahoma 2022-06-24 17:27:54 –

A recent study by the Federal Reserve Bank of Kansas City found that growth at local factories slowed from May to June, and many manufacturers could worsen in the coming months. Has expressed concern. (Photo illustration by Mech Mind of Unsplash)

Manufacturing in Oklahoma and surrounding states has slowed slightly in the past month, and corporate officials recently surveyed by the Federal Reserve Bank of Kansas City will continue to face difficulties or worsen in the coming months. He expressed concern that he might.

A monthly survey of manufacturers in District 10 by the Kansas City Federal Reserve Board outlines manufacturing activities in districts, including the western third of Missouri. Kansas, Colorado, Nebraska, Oklahoma, Wyoming all. And the northern half of New Mexico. Manufacturers are asked about production and shipping, availability of raw materials, and other trends that affect immediate planning. This survey collects feedback from companies in different industries and different sizes and locations.

According to a statement from the Federal Reserve Board, the study revealed that the pace of growth in local factories slowed from May to June, but some growth was seen.

Chad Wilkerson, Vice President and Economist at the Federal Reserve Bank of Kansas City, said: “More than 85% of companies report delayed shipments and product availability as a continuous negative impact on their business activities, and about half do not expect improvement in the next six months.”

Survey subjects were specifically asked about supply chain disruptions and shortages, shipping delays, warehouse and storage space shortages or current availability, and the ability to cope with increased costs due to inflation. About 60% of respondents said they expect supply chain disruptions and shortages to remain the same or worsen in the next six months.

In addition to the findings, the Fed’s report contained a series of comments received.

・ “We expect a significant decrease in sales in the second half of the year. It seems that customers have overordered and oversupplied in the short term.”

・ “Production continues to decline due to a shortage of parts. Input inventory is the highest ever. We are investing a lot in inventory, but all we need is one shortage to stop production of the vehicle. Only the part that is. “

“The lack of availability and shipping issues are now most apparent in manufacturing supplies and equipment replacement parts. Energy costs have increased significantly, as have labor costs and profits.”

“I’m interested in seeing the impact of an increase of 75 basis points on things. We need to address energy / fuel issues. Hot summers, droughts, potentially bad crops, power grids, parts of the world I’m very worried about where we’ll be in six months in many ways, including food shortages in. All sorts of bad things could be added. “

“Inflation may be 8-10%, but material manufacturing costs are significantly higher than last year.”

“There is a lot of pressure to maintain a reasonable margin due to higher material costs and higher wages. Sales are passing on price increases to customers to recover these increased costs.”

Fed survey reveals slowdown in manufacturing Source link Fed survey reveals slowdown in manufacturing

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