News and Analysis
Join the OMA Aug. 19 for a webinar that will examine ways to use the Industry 4.0 framework as a tool to address disruptors and improve performance and profitability. Experts from OMA Connections Partner Plante Moran will share case studies and show participants why having a structured approach to assess risks, prioritize improvement, and make progress is important to long-term success.
The webinar will also explain how cybersecurity plays a key role in the implementation of Industry 4.0. Learn more and register. 7/22/2021
In its most recent “Manufacturing Insights” newsletter, OMA Connections Partner RSM spotlights global automotive supply chains, America’s industrial trade deficit, and the energy industry under the Biden administration. Read the full issue. 7/20/2021
Good news from southwest Ohio. According to a Journal-News story, Butler County, Ohio experienced 23% growth in manufacturing jobs from 2010 to 2019, the latest data available. In comparison, manufacturing jobs increased 5.6% nationwide over the same period.
The article notes that one reason Butler County now has approximately 24,000 manufacturing jobs is the current diversity of manufacturing companies, several of which have recently expanded. 7/20/2021
The Buckeye State is once again a top 10 state for business, according to the 2021 edition of CNBC’s annual ranking. Ohio’s No. 10 ranking is unchanged from 2019 — the last time the network published its comparison. Ohio’s neighbors were ranked as follows: Michigan, 11th; Indiana, 19th; Pennsylvania, 23rd; Kentucky, 41st; and West Virginia, 47th.
After scoring all 50 states on 85 metrics in 10 broad categories of competitiveness, CNBC determined Ohio was No. 2 in Cost of Doing Business, the most heavily weighted category. Ohio also performed well in the categories of Access to Capital (7th), Infrastructure (11th), and Economy (15th). 7/13/2021
Ohio Lt. Gov. John Husted this week announced the introduction of the Ohio Personal Privacy Act (OPPA). House Bill 376 is a comprehensive plan offered by Reps. Rick Carfagna (R-District 68) and Thomas Hall (R-District 53) to provide data privacy protections that resemble those enacted in California, Virginia, and Colorado.
The OPPA would create a list of “data rights” for state residents who interact with businesses that collect and sell personal data. These rights would include the ability to have a company delete personal data, as well as request that business not sell personal information to a third party. As the bill is currently written, businesses would need to adhere to HB 376’s provisions if they:
- generate $25 million in gross revenue; or
- control or process data of at least 100,000 consumers; or
- derive more than 50% of gross revenue from the sale of personal data.
According to U.S. Labor Department data, producer prices for final-demand goods and services have increased 7.3% over the past 12 months — the largest increase on record. Prices for industrial chemicals rose 4.5% last month alone, while prices for gasoline, meats, electric power, processed poultry, and motor vehicles also moved higher. Meanwhile, consumer prices increased 5.4% over the past 12 months.
Several CEOs have sounded the alarm on inflation, with JPMorgan Chase’s Jamie Dimon saying it “could be worse than people think.” Chad Moutray, chief economist for the National Association of Manufacturers, says continued inflation “will put pressure on the Federal Reserve, likely accelerating its plans for tapering asset purchases and increasing interest rates.”
According to analysis by OMA Connections Partner RSM, consumer prices will likely peak in the fall. The firm adds: “If one is a middle-market firm manager … this is a good starting point for a rational conversation around inflation risk and any prospective policy changes.” 7/15/2021
Manufacturers are re-evaluating their approach to supply chain management. A recent study concluded that increased C-suite engagement with managing their supply chains — combined with efficient adoption of technologies — could play a key factor in company growth. Read more on how supply chain management is changing in this insight from OMA Connections Partner Fifth Third Bank. 7/14/2021
On July 9, President Joe Biden issued the 52nd executive order of his young presidency — this one titled “Promoting Competition in the American Economy.” The order directs various federal agencies to implement 72 actions aimed at impacting a range of economic activity, including expanding labor union participation, forcing OEMs to allow third-party repairs, and lowering prescription drug prices.
The National Association of Manufacturers (NAM) has published this summary of Biden’s order. NAM President and CEO Jay Timmons has said some of the order’s provisions “are solutions in search of a problem” and threaten to undo manufacturers’ progress by “undermining free markets.”
While the U.S. remains the third most-populated country in the world, the country’s population has shifted over recent decades. Visual Capitalist has produced this infographic based on U.S. Census Bureau data to visualize how each state’s population has evolved over the past 10 years. Utah saw the largest population growth rate (18.4%) during the last decade; West Virginia experienced the steepest decline (-3%). 7/14/2021
The most recent RSM Manufacturing Outlook Index shows above-normal levels of manufacturing confidence — marking the fourth consecutive month of significant, above-normal sentiment. RSM says it expects these high levels of confidence to be sustained.
Meanwhile, the ISM® Manufacturing Purchasing Managers’ Index® edged down from 61.2 in May to 60.6 in June, but it was the sixth time in the past seven months that the headline index exceeded 60, signaling strong growth. Prices soared at the fastest rate since July 1979 as respondents continued to cite widespread supply chain challenges. 7/6/2021