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Industrial Production Index
102.0
Total Industrial Production Index
-0.39% (YOY)
Published by the Federal Reserve, the Industrial Production Index (IPI) is a monthly metric that gauges the actual production levels in sectors such as manufacturing, mining, and utilities, compared to a reference year.
98.4
Manufacturing
-1.0% (YOY)
118.2
Mining
-1.3% (YOY)
89.0
Business Equipment
-6.3% (YOY)
104.8
Materials
-0.3% (YOY)
100.0
Construction
-0.7% (YOY)
Monthly 2022 vs 2023 vs 2024:
Capacity Utilization
76.8
Total Capacity Utilization Index
-2.29% (YOY)
The percentage measure of how efficiently a country or business is using its potential manufacturing and production capabilities.
76.0
Manufacturing
+1.3% (YOY)
88.8
Mining
-0.8% (YOY)
Monthly 2022 vs 2023 vs 2024:
Industrial production (IP) moved down 0.1 percent in November after declining 0.4 percent in October. In November, manufacturing output rose 0.2 percent, boosted by a 3.5 percent increase in the index for motor vehicles and parts. The indexes for mining and utilities fell 0.9 percent and 1.3 percent, respectively. At 102.0 percent of its 2017 average, total IP in November was 0.9 percent below its year-earlier level. Capacity utilization stepped down to 76.8 percent in November, a rate that is 2.9 percentage points below its long-run (1972–2023) average.
3.4%
Manufacturing Unemployment Rate
+9.6% (YOY)
Indicates the percentage of individuals in machinery manufacturing who are 16 years or older and are nonagricultural private wage & salary workers without a job.
2.7%
Machinery
+50.0% (YOY)
4.1%
Chemical
+36.6% (YOY)
0.0%
Petroleum & Coal
-100% (YOY)
2.2%
Electrical Equipment
-15.3% (YOY)
3.1%
Computer & Electronics
-27.9% (YOY)
3.3%
Food
-19.5% (YOY)
Monthly 2022 vs 2023 vs 2024:
Manufacturing Unemployment Rate
246.8
Manufacturing Producer Price Index
+0.1% (YOY)
The producer price index quantifies the percentage fluctuation in prices that domestic producers receive for goods and services.
185.2
Machinery
+2.7% (YOY)
354.8
Chemical
+1.0% (YOY)
300.5
Petroleum & Coal
-14.3% (YOY)
201.9
Electrical Equipment
+1.7% (YOY)
102.8
Computer & Electronics
+3.0% (YOY)
262.7
Food
+3.8% (YOY)
186.8
Paper
+2.5% (YOY)
Monthly 2022 vs 2023 vs 2024:
The November 2024 U.S. jobs report signals continued economic strength, with 227,000 jobs added—exceeding analysts’ expectations of 207,000. This marks another milestone in the ongoing period of historic employment expansion, now tied for the third longest in U.S. history. While unemployment ticked up slightly to 4.2%, the labor market remains tight, with many companies pausing layoffs in favor of stabilizing their workforces.
Manufacturing and engineering were standout sectors this month, contributing a combined 32,000 jobs to the national total. Unemployment in these industries declined to 3.4%, a significant improvement that reflects the return of workers who had been sidelined by October’s layoffs. This resurgence points to a strengthening industrial sector, buoyed by increased hiring activity and a demand for skilled labor.
Despite the positive trajectory, manufacturers continue to face significant challenges. According to the National Association of Manufacturers’ (NAM) Q2 Outlook Survey, 67% of manufacturers report difficulty attracting and retaining talent. Rising healthcare costs (66%) and an unfavorable business climate (59%) also weigh heavily on the sector, while 94% of manufacturers express concern over scheduled tax increases slated for 2025, warning that these hikes could stifle capital investment, job creation, and global competitiveness.
To address workforce shortages, many manufacturers are investing in recruitment strategies, such as internships (74%), apprenticeships (57%), and partnerships with schools (55%). These initiatives aim to build a pipeline of skilled workers to meet the sector’s long-term demands.
Overall, the November jobs report highlights resilience in the U.S. labor market, with manufacturing leading the way in job creation. However, persistent challenges—including talent shortages and potential tax increases—underscore the need for strategic solutions to sustain growth in this critical sector.
$2.02
Dry Van Spot Rates
-2.8% (YOY)
$2.37
Flatbed Spot Rates
-2.8% (YOY)
3.85
Dry Van Load-To-Truck Ratio
+81.6% (YOY)
11.13
Flatbed Load-To-Truck Ratio
+101.6% (YOY)
Load-to-Truck Ratio (LTR) Analysis for November 2024:
The November 2024 load-to-truck ratio (LTR) displayed dynamic shifts, reflective of typical seasonality and market adjustments. Early in the month, Week 45 saw a 10% decline in dry van load posts compared to the prior week, consistent with first-week November trends. Despite this drop, load posts were 14% higher year-over-year (y/y) and 5% above pre-pandemic averages, signaling sustained strength in the spot market. Carrier capacity tightened, resulting in a 6% increase in the LTR to 4.03.
In Week 46, the LTR dropped 8% to 3.59 due to a 9% weekly decrease in load posts and flat carrier capacity. However, Week 47 reversed this trend, with a 15% surge in load posts as shippers prepared inventory ahead of Thanksgiving and Black Friday sales. Carrier capacity tightened significantly, leading to a 28% increase in the LTR, peaking at 4.46. By Week 48, a shortened workweek caused a 13% decline in load posts, bringing the LTR to 3.76—a 14% week-over-week (w/w) decrease but still 13% higher y/y.
These trends highlight a spot market that remains active despite seasonal volatility. The higher-than-average LTR throughout the month underscores ongoing demand for carrier services, particularly in preparation for holiday-driven retail activity.
Linehaul Spot Rates Analysis for November 2024:
Linehaul spot rates exhibited incremental growth throughout November, averaging $1.67 per mile nationally—a $0.11/mile increase y/y and a $0.04/mile gain since disruptions from the ILA strike and recent hurricanes. Week 45 saw a slight tightening in capacity, resulting in a penny-per-mile increase to $1.67/mile. Rates dipped marginally to $1.66/mile in Week 46 as capacity balanced with demand.
Week 47 saw renewed upward momentum, with rates increasing to $1.67/mile amid higher load volumes and tighter capacity. By Week 48, a shortened workweek and reduced equipment posts pushed rates up to $1.71/mile, marking the highest weekly average for the month. On DAT’s Top 50 lanes, carriers consistently earned an average of $1.98/mile, with Week 48 reaching $2.05/mile—$0.34/mile above the national average and $0.06/mile higher than the three-month trailing average.
These consistent gains, despite fluctuating load volumes, reflect resilience in the spot market. Rates are trending higher than last year and exhibit stability on high-demand lanes, suggesting a robust environment heading into the peak retail season.
Conclusion:
November 2024’s market dynamics reveal sustained strength in the spot market, driven by holiday-related demand and tightening capacity. The LTR and spot rates suggest a balanced but active freight environment, with carriers benefitting from solid pricing power on key lanes. As the industry transitions into December, continued vigilance on capacity trends and rate movements will be crucial for stakeholders preparing for the holiday shipping rush.
Industrial CO2 Emissions
113M
Metric Tons of CO2 Emitted
-5.8% (YOY)
This is a monthly indicator displaying the amount of CO2 emissions in the industrial sector in Million of metric tons.
6M
Coal
-14.2% (YOY)
45M
Natural Gas
0.0% (YOY)
25M
Petroleum
-16.6% (YOY)
37M
Electricity
-2.6% (YOY)
Industrial Energy Consumption
Monthly 2022 vs 2023 vs 2024:
2,691T
BTU’s of Energy Consumed
-1.1% Tbtu (YOY)
This is a monthly indicator displaying the amount of Energy consumed in the Industrial sector in Trillions of btu (british thermal units)
1,706T
Fossil fuels
-2.3% Tbtu (YOY)
195T
Renewable Energy
+3.1% Tbtu (YOY)
317T
Electricity
+0.9% Tbtu (YOY)
472T
Electrical System Losses
0.0% Tbtu (YOY)
747T
Petroleum
-5.2% Tbtu (YOY)
Monthly 2022 vs 2023 vs 2024:
Gas & Electricity Costs
$3.10
Natural Gas Prices (Dollars per thousand cubic feet)
-17.9% (YOY)
$8.72
Avg prices of electricity (Cents per Kilowatthour, Including taxes)
-2.0% (YOY)
Coal: U.S. coal production and consumption continued their downward trend as demand for coal-fired electricity generation remains weak. Increased competition from natural gas and renewable energy, coupled with stricter environmental regulations, has diminished coal’s role in the energy mix. Coal exports, primarily for metallurgical purposes, remain a small but stable outlet for U.S. coal producers.
Petroleum: Petroleum consumption was stable, with minor fluctuations attributed to transportation demand. Domestic crude oil production maintained robust levels, driven by steady global demand for U.S. exports. Refined petroleum products experienced slight increases in international shipments, highlighting the U.S. position as a net exporter of petroleum.
Natural Gas: Natural gas continues to dominate the fossil fuel sector, with consumption peaking in colder months due to heating demand and industrial use. Production remains strong, supported by technological advancements and increased export capacity for liquefied natural gas (LNG). Natural gas is cementing its role as a key transitional fuel in the ongoing shift to cleaner energy sources.
Shift in Generation: The U.S. electricity generation landscape continues to shift away from coal and toward natural gas and renewable energy. Low natural gas prices, coupled with state and federal incentives for renewable energy, are driving this transformation. Coal-fired generation accounted for a diminishing share of total electricity generation, reflecting the sector’s decline.
Electricity Prices: Regional variations in electricity prices persisted, largely influenced by shifts in fuel costs and the growing contribution of renewables to the grid. Ongoing investments in grid modernization and renewable energy infrastructure may lead to future price stabilization in some markets.
November 2024 data illustrates the accelerating transition in the U.S. energy sector:
The energy market’s evolution reflects broader economic and environmental priorities, with renewable energy poised to play a critical role in shaping the future of the U.S. energy sector.
Ransomware Attacks
Utilities: November 2024 saw no ransomware attacks in the utilities sub-industry, a notable improvement from November 2023 (1 attack) and November 2022 (2 attacks). Year-over-year trends indicate a decline in incidents, reflecting improved resilience and cybersecurity practices within the sector. However, sporadic attacks earlier in the year underscore the ongoing need for vigilance.
Construction: The construction sub-industry also reported no ransomware attacks in November 2024, maintaining a significant downward trend from previous years (2 attacks in both November 2023 and 2022). Despite this month’s improvement, the spike in February and March 2024 highlights a vulnerability period that may require targeted prevention strategies.
Manufacturing: November 2024 recorded only 1 ransomware attack, a sharp decline compared to 6 attacks in November 2023 and 3 in November 2022. This marks the lowest figure for the sector in three years, suggesting progress in bolstering defenses. Nevertheless, the sector remains a frequent target overall, as evidenced by higher attack volumes earlier in the year.
The November 2024 ransomware statistics indicate a promising reduction in incidents across utilities, construction, and manufacturing. However, historical trends reveal that these sectors remain prime targets.
Workplace Fatalities
The downward trend in workplace deaths, particularly in 2024, reflects commendable progress in industrial safety practices. However, continued vigilance and innovation are essential to sustain this momentum, with a focus on eliminating preventable deaths and improving safety standards across industries.
Energy
$130.30
Coal (per ton)
-9.9% (YOY)
$70.70
Crude Oil (per barrel)
-4.3% (YOY)
$0.78
Propane (per gallon)
+16.5% (YOY)
$74.8
Uranium (per pound)
-13.3% (YOY)
Metals
$3,247
Steel (per ton)
-16.1% (YOY)
$4.10
Copper (per pound)
+5.3% (YOY)
$779.00
Iron Ore (per ton)
-15.6% (YOY)
$44.50
Titanium (per kilogram)
-2.2% (YOY)
$931.30
Platinum (per troy ounce)
-2.4% (YOY)
Agricultural
$553.60
Lumber (per 1K board ft)
-2.8% (YOY)
$1.97
Rubber (per kilogram)
+36.0% (YOY)
$438.40
Corn (per bushel)
-7.2% (YOY)
$68.40
Cotton (per pound)
-13.8% (YOY)
$4,530
Palm Oil (per ton)
+20.6% (YOY)
Industrial
$5,774
Kraft Pulp (per ton)
+1.7% (YOY)
$2,526
Aluminum (per ton)
+11.6% (YOY)
$8,399
Polyethylene (per ton)
+3.8% (YOY)
$469.00
Molybdenum (per kg)
+15.0% (YOY)
$3,003
Zinc (per ton)
+16.3% (YOY)
Energy: Coal and uranium prices continue to decline, reflecting a shift to cleaner energy sources. Crude oil remains stable, while propane prices surged (+16.5% YoY), indicating higher seasonal demand.
Metals: Mixed trends show strong demand for copper, aluminum, and zinc due to renewable energy and electrification, while steel and iron ore face reduced demand.
Agriculture: Rubber (+36% YoY) and palm oil (+20.6% YoY) saw sharp price increases, driven by industrial and food sector demand. Corn and cotton prices declined, reflecting improved supply.
Industrial: Aluminum (+11.6% YoY) and zinc (+16.3% YoY) prices are rising, driven by robust demand in construction and renewable applications.
Sustainability and electrification are driving demand for metals and renewables, while fossil fuels and traditional materials like coal face ongoing declines. Manufacturers should anticipate sustained input costs in high-demand sectors.
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Sources:
© 2024 The Industrial Service Group