ISM DATA – “Comments from the panel reflect continued expanding business strength. Demand remains strong, with the New Orders Index at 60 percent or above for the 14th straight month, and the Customers’ Inventories Index remaining low. The Backlog of Orders Index continued to expand, reading at 60 percent of higher for the third consecutive month. Consumption, described as production and employment, continues to expand in spite of labor, skill and material shortages.
What does this mean in blue collar language? Short term: OVERTIME pay folks…. maximum earnings possibilities as demand for factory and manufacturing has all employment working maximum production shifts. Long term: upward wage pressure, jobs, jobs, jobs.
Inventory backlogs, “supply chain issues” equals not enough drivers and haulers to keep up with production shipment demand. Thirst for raw materials. “Supplier labor issues”, sources of raw materials and ancillary origination parts are having a hard time staffing up for the demand. Yup, more upward blue collar wage pressure. “Transportation difficulties“, again, Truckers and shippers in high demand.