IQMS Blog for Manufacturing ERP Expertise

Donnelly Custom Manufacturing specializes in short run injection molding with thermoplastics for industrial OEMs. Because the manufacturer is constantly changing materials (Donnelly handles more than 1,000 different resins, dies and inserts), short run manufacturing presents a unique set of challenges.

Personal Spending Sees Another Modest Increase in August
Personal income and spending increased by 0.4 percent in  August, mirroring the gain seen in July, according to the Bureau of Economic Analysis. Both durable and nondurable goods were higher for the month (up 1.2 percent and 0.6 percent, respectively), with motor vehicles and parts helping to buoy the durable goods purchasing numbers. Personal income also grew in August, but at its lowest increase in five months (0.3 percent). In general, the data suggests that Americans are increasing spending modestly, but at a slower rate of purchasing than seen in late 2014. To learn more, visit here.

The Challenge:
Apple Rubber Products, Inc. manufacturers rubber components, such as o-rings and seals, for the medical device and aerospace industries. As an AS9100C, ISO 9001 and RoHS compliant manufacturer with a Class 7 (10000) cleanroom, Apple Rubber understands the importance of quality control, full lot traceability, safety and part reliability.

China’s Economy Continues to Slow
The Chinese manufacturing sector continues to struggle, with the Caixin Flash General Manufacturing PMI data contracting for the seventh straight consecutive month, from 47.3 in August to 47.0 in September. With a PMI at its lowest level since March 2009, the Bank of China has devalued the yuan, down 2.8 percent since early August. Additionally, the Shanghai Composite Stock Market Index has plummeted nearly 40 percent since June 12, promoting growth worries in financial markets around the world. To learn more, visit here.

The Electric & Hybrid Vehicle Technology Expo and The Battery Show recently convened in Novi, Michigan and showcased best of breed technology for the alternative power segment of the automotive industry.

Federal Reserve Does Not Raise Rates at September Meeting
At their September meeting, the Federal Open Market Committee (FOMC) announced that they would not raise interest rates at this time, citing the need for more time to evaluate incoming data in order to ensure sufficient progress. All eyes now turn to the December meeting as the most likely option for a short-term interest rate increase. It is being speculated that the Federal Reserve will implement three increases spread out over even intervals throughout 2016 in amounts that will equal a full percentage point by the end of next year. To learn more, visit here.

At a recent Automation Alley aerospace and defense industry event, IQMS had the opportunity to attend an economic overview of the state of aerospace industry. Delivered by Murat Muftari, International Trade Specialist for the Global Aerospace & Defense Team for the U.S. Department of Commerce, the overview described a flourishing industry with a healthy future. Here is a brief look at some of the details:

Manufacturing Drops 17,000 Workers in August
In the first decline in just over two years, manufacturers lost 17,000 net workers in August, according to the Bureau of Labor Statistics. With a hiring average of only 3,5000 workers per month in 2015 (compared to the average of 20,667 workers in the second half of 2014), it is clear that challenges in the manufacturing sector continue to hold down hiring rates. The strong U.S. dollar, economic problems from global markets such as China and seasonal factors could all partially explain the lower manufacturing hiring rates for August. To learn more, visit here.

Whether you are a medical device start-up or a growth-orientated medical device company, most likely you began your business with an idea: An innovative product designed to help people who are sick or injured. And while bringing a medical device to market should be an engineering problem, many owners also have to deal with managing the business side of their medical device company in order to realize success.

Recently, the business association and accelerator, Automation Alley, hosted an aerospace and defense industry briefing to discuss 2015 commercial and defense global market opportunities for manufacturers in the United States. Michigan state and local economic development agencies met with suppliers and manufacturers to review trends, both nationally and across the world, in the A&D industry.