Blog – Manufacturing Analysis and Commentary – June 2023 Summary: The sector, which accounts for 11.3% of the economy, is being dragged down by the Federal Reserve's fastest interest rate hiking campaign since the 1980s. Banks also have tightened lending following the recent failures of three U.S. banks, while spending is shifting away from goods, typically bought on credit, to services. Businesses are cutting back on restocking in anticipation of weaker demand later this year. The Institute for Supply Management last week said its manufacturing PMI contracted for a seventh straight month in May. Orders for transportation equipment increased 3.7% on top of a 9.8% jump in March. Civilian aircraft orders fell 8.5% after having surged by 96% in the prior month. Motor vehicle orders edged up 0.5%. Excluding transportation, orders fell 0.2%, dropping for a third straight month and to their lowest since February 2022. Orders for machinery rose 1.0%, but bookings for computers and electronic products fell 1.4%. Orders for electrical equipment, appliances and components dropped 1.7%. Shipments of manufactured goods fell 0.4%. The inventory of manufactured goods at factories rose 0.5%. Unfilled orders at factories rose 0.8 Source - https://money.usnews.com/investing/news/articles/2023-06-05/u-s-factory-orders-rise-in-april Additional links and sources: Class 8 orders - https://www.freightwaves.com/news/rising-may-class-8-truck-orders-less-telling-than-backlog-burn Automotive Sales - https://www.americanexpress.com/en-us/business/trends-and-insights/videos/automotive-industry/ Steel Production - https://www.steelorbis.com/steel-news/latest-news/us-raw-steel-production-up-10-percent-week-on-week-1292937.htm Agricultural Equipment - https://www.businesswire.com/news/home/20230530005385/en/North-America-Tractor-Market-Outlook-Forecasts-Report-2023-2028-Featuring-Key-Vendors---John-Deere-CNH-Industrial-AGCO-Kubota---ResearchAndMarkets.com Construction equipment - https://www.farmequip.org/news/demand-for-new-factories-drives-growth-in-construction-spending/ Oil Rigs - https://www.rigzone.com/oil/news/north_america_loses_more_rigs-05-jun-2023-172968-article/ Ports - https://www.hapag-lloyd.com/en/services-information/operational-updates/north-america.html Lithium - https://seekingalpha.com/article/4609592-lit-economic-weakness-in-china-may-impact-ev-sales Costs - https://www.comerica.com/insights/economic-commentary/ism-pmis-softer-than-expected-in-may-and-inflation-is-slowing.html Technologies - https://levelup.gitconnected.com/top-10-breakthrough-technologies-you-must-know-in-2023-991cc1db8ac9 ESG - https://www.forbes.com/sites/columbiabusinessschool/2023/06/05/what-esg-investors-must-demand-for-credible-sustainability-reporting/?sh=1cf2162f2fd7

1. Manufacturing Sector – United
States
2019
• Presenter:
• Paul Young CPA CGA
• Pre-Sales/Business Development/Customer Success Management
• Date: June 6, 2023
© 2021 IBM Corporation

2. Paul Young - Bio
• CPA, CGA (1996)
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Customer Success Management
• SME – Risk Management
• SME – Sustainability and ESG Policy
Development and Reporting
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Email: Paul_Young_CGA@outlook.com
Linked in - https://www.linkedin.com/in/paul-young-055632b/

3. Agenda
USA Manufacturing / Shipments for August 2021
Durable Goods
USA PMI Index
Reshoring / Manufacturing
Steel
AG Equipment
Class 8 Trucks
Oil and Energy
Analytics / Manufacturing
Climate Change / Supply Chain

4. USA Manufacturing / Shipments

5. USA Manufacturing / Shipments

6. Manufacturing Shipments

7. Durable Goods
Source – USA Government

8. Electrical Vehicles and Global Sales

9. PMI Index
Source - https://www.forexfactory.com/news/1170698-us-manufacturing-pmi-at-528-july-2022-manufacturing

10. Steel

11. North American Equipment Sales
Source - https://www.aem.org/Market-Data/

12. Commodity
Prices
SOURCE -
HTTPS://WWW.WORLDBAN
K.ORG/EN/RESEARCH/COM
MODITY-MARKETS

13. Commodity
Prices
Source – BMO Economics

14. Class 8 Truck Sales
S o u r c e – T h e T r u c k e r a n d h t t p s : / / w w w . t t n e w s . c o m / a r t i c l e s / s e p t e m b e r - c l a s s - 8 - s a l e s -
h i g h e s t - y e a r o r h t t p s : / / w w w . t t n e w s . c o m / a r t i c l e s / c l a s s - 8 - s a l e s - n o v e m b e r - s l i p o r
h t t p s : / / w w w . t t n e w s . c o m / a r t i c l e s / d e c e m b e r - c l a s s - 8 - s a l e s - r e a c h - h i g h - m a r k - 2 0 2 0 - d o w n - 7 4 -
c o m p a r e d - 2 0 1 9

15. USA Oil

16. Reshoring of Manufacturing
Source - https://www.ttnews.com/articles/2020-events-force-manufacturers-rethink-reshoring-operation-plans

17. Supply Chain
Companies worldwide are adapting to the pandemic by shifting production closer to customers, but such
efforts to make supply chains more resilient also complicate tax obligations, EY said.
“There’s a lot of benefits that can be obtained” by overhauling global supply chains, according to Craig
Hillier, international tax and transactions services leader at EY. “But there are all these knock-on tax, financial
system, payroll, people, talent issues that need to be addressed as well.”
CFOs need to consider “a whole host of tax issues,” including exit tax cost and transfer of goodwill, Hillier
said Thursday during an EY webinar. At the same time, companies shifting supply chains might gain benefits
such as tax breaks and funding for employment and training, he said, noting “there’s a lot out there at the
moment that companies can take advantage of.”
https://www.cfodive.com/news/supply-chain-overhaul-brings-benefits-tax-complexity-
ey/617973/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202022-01-
31%20CFO%20Dive%20%5Bissue:39446%5D&utm_term=CFO%20Dive

18. Mitigating Climate Change
Building a resilient supply chain
Moving to zero-waste
Adoption of policies related to the circular economy
Adopting ESG reporting
Adopting risk and crisis management reporting
Continue look at ways to better management of water
Work with insurance providers on how manage insurance costs.

19. Industry 4.0
Summary:
Businesses around the world continue to look at how best to optimize their business operations including advance manufacturing.
ESG is pushing both the private and public sectors to revisit their environmental, social, and governance policies and
procedures. https://www.pwc.com/ca/en/media/release/pwc-canada-study-shows-esg-reporting-falls-short-across-
canadas-top-150-public-companies.html or My box folders -
https://ibm.box.com/s/vmyitcackqevvm1hcxv7wke6gudrpnce or Accelerator -
https://community.ibm.com/accelerators/catalog/content/R6-Sustainability or My video -
https://www.youtube.com/watch?v=M-IEsfJWxXo&t=40s
My work: https://www.slideshare.net/paulyoungcga/what-is-next-for-industry-40

20. Summary
USA manufacturing will continue to face many challenges
Blog – Manufacturing Analysis and Commentary – June 2023
Summary:
The sector, which accounts for 11.3% of the economy, is being dragged down by the Federal
Reserve's fastest interest rate hiking campaign since the 1980s.
Banks also have tightened lending following the recent failures of three U.S. banks, while
spending is shifting away from goods, typically bought on credit, to services.
Businesses are cutting back on restocking in anticipation of weaker demand later this year. The
Institute for Supply Management last week said its manufacturing PMI contracted for a seventh
straight month in May.
Orders for transportation equipment increased 3.7% on top of a 9.8% jump in March. Civilian
aircraft orders fell 8.5% after having surged by 96% in the prior month. Motor vehicle orders
edged up 0.5%. Excluding transportation, orders fell 0.2%, dropping for a third straight month
and to their lowest since February 2022.
Orders for machinery rose 1.0%, but bookings for computers and electronic products fell 1.4%.
Orders for electrical equipment, appliances and components dropped 1.7%.
Shipments of manufactured goods fell 0.4%. The inventory of manufactured goods at factories
rose 0.5%. Unfilled orders at factories rose 0.8
Source - https://money.usnews.com/investing/news/articles/2023-06-05/u-s-factory-orders-rise-in-april
Additional links and sources:
Class 8 orders - https://www.freightwaves.com/news/rising-may-class-8-truck-orders-less-telling-than-
backlog-burn
Automotive Sales - https://www.americanexpress.com/en-us/business/trends-and-
insights/videos/automotive-industry/
Steel Production - https://www.steelorbis.com/steel-news/latest-news/us-raw-steel-production-up-10-
percent-week-on-week-1292937.htm
Agricultural Equipment - https://www.businesswire.com/news/home/20230530005385/en/North-
America-Tractor-Market-Outlook-Forecasts-Report-2023-2028-Featuring-Key-Vendors---John-Deere-CNH-
Industrial-AGCO-Kubota---ResearchAndMarkets.com