The manufacturing industry had a great year in 2010. Manufacturing grew in all four quarters, according to the Manufacturers Alliance’s MAPI Survey.
The survey represents the state of the manufacturing industry in percentages. Numbers higher than 50 percent indicate growth, while numbers lower than 50 percent indicate decline. In the last two quarters of 2010, the numbers were 77 percent and 75 percent, respectively. The fourth quarter had a small decline from the third quarter, but it still posted an impressive number, considering how weak manufacturing was in 2009.
The survey uncovered a challenge that could hurt manufacturing in 2011. The amount of inventory that companies have in stock is on the rise, which could mean they are ordering too many products or their sales are slowing. Either one of those means businesses could cut their demand in 2011. Manufacturers would need to adjust to the smaller orders, which could mean manufacturing growth could turn to loss or stagnation.
However, at the moment 33.3 percent of manufacturers said they are working at the highest capacity measured in the survey: 85 percent or more. That’s higher than the historical average of 32 percent, and it’s also much better than it was a year ago.
To help you keep up with sudden changes in demand, you should consider using manufacturing inventory software. With manufacturing inventory software, you can study detailed data on popular items, such as their sales history, cost to produce and storage processes. You can also automatically generate work orders from sales orders, track inventory from one location to another, and quickly reorder parts.
Be prepared for sudden rises and drops in the manufacturing industry by taking advantage of manufacturing inventory software.