PMPA / ITR Economics Forecast Report February 2024
Slowing Growth- Is Still Growth
Slowing Growth – Is Still Growth but your particular market may vary. In the Institute for Trend Research’s February 2024 Economic Report, seven of the eight markets we follow are characterized by slowing growth. Only one market-US Housing Starts- is already in recovery. Slowing growth is still growth- but the market served makes the difference to your bottom line. One market for our shops is expected to log over 5% increase in 2024, while another is expected to decline by double digits. Overall five of our eight most important markets served are expected to remain in the 0.5 % to 5.5 % range of growth for the year. Less expected is the outlook for 2025 and beyond-which are looking strongly positive- as we work through in 2024 the supply chain, economic (borrowing costs, labor costs, inflation), and inventory constraints that have characterized our markets since COVID. There is a lot of noise and distraction in our media feeds these days. But pay attention to the data, listen to your customers, and work on preparing your team and processes for the positive recovery that will be upon us towards the end of 2024. Keep close eye on your cash (receivables and spending), look at your markets served through the eyes of a chess master, and edit your customer list to elevate your chances for improved profitability and enterprise success. Slow growth is still growth, and weeding the customer list might be the most strategic task you can do to prepare for the recovery that is ahead.
The Institute for Trend Research (ITR) quarterly reports focus on major areas of economic growth and decline in key market segments for the Precision Machined Products Industry. They are provided to PMPA members as part of the association’s overall business intelligence program and are used as a management tool to help PMPA members plan for what lies ahead and which markets they should focus on in a complex manufacturing environment.