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Supply
Chain by the Numbers |
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- June 18, 2015 -
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Amazon Pleads for Drone Reg Relief; Global Water Supplies Shrinking Fast, New Research Says; US Manufacturing Growth Stalling; Boeing Suppliers Struggling to Keep Up |
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30 |
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1.8%
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The rather paltry level of growth in US manufacturing output in May versus 2014, according to the Federal Reserve this week, as production levels in the US seem to have stalled. At an index level of 101.3, manufacturing output was down two-tenths of a percent versus April, but more importantly has been flat to modestly down now for a number of months, having changed little since the measure made it back to the 100 level that equals the peak and baseline year average from 2007 last July for the first time since the recession began in 2008. The score means US manufacturing output in May was 1.2% above 2007 levels all these years later. US manufacturing capacity utilization is also trending down slightly, coming in at 77% in May, slumping a bit from April and more since December, when the reading was 77.9%, and below the long run average of 78.6%. |
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38,000 |
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That's how many planes Boeing now says it will produce over its latest 20-year forecast, up by about 1000 aircraft since the last projection. 20-year forecast? Talk about capacity planning. Boeing also said it plans to increase production in 2017 from 42 planes a month currently to 47. Those 38,000 planes will bring in some $5.6 trillion over that timeframe. With Boeing rival Airbus also seeing bullish order books, it is putting a delivery squeeze on many aerospace industry suppliers struggling to keep up with the demand. Engine maker CFM, for example, said it plans to boost output to more than 1,800 engines annually around 2020. But ramping up production even more aggressively would be a challenge. "We have stretched ourselves as fast as we can go," a CFM executive said.
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