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INDUSTRIAL UPDATE

*Data Compiled from the most UTD Industry Reports of 2023 and 2024

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Industrial Projects

North American Industrial Project Spend

(For August 2023)

North American Project Spend
$ 0 B

This is a monthly indicator displaying the amount of industrial project spend in north America.

+$96.76B (YOY)

+16.96% (YOY)

Monthly 2022 vs 2023:

Top 5 Spend by Industry:

Industrial Man. Spend
$ 0 B

+$5.84M (YOY)

+2.82% (YOY)

Power Spend
$ 0 B

+$22.64M (YOY)

+19.42% (YOY)

Onshore Oil & Gas
$ 0 B

+$27.23M (YOY)

+41.17% (YOY)

Metals & Minerals
$ 0 B

+3.37M (YOY)

+7.38% (YOY)

Pharma & Biotech
$ 0 B

+11.01M (YOY)

+26.42% (YOY)

North American Industrial Project Fallout

(For August 2023)

North American Project Fallout
($ 0 M)

This is a monthly indicator displaying the amount of industrial projects that were cancelled, placed on hold, or delayed.

-$50,920M (YOY)

-19.87% (YOY)

Monthly 2022 vs 2023 (running):

Fallout by Industry:

Industrial Manufacturing
$ 0 M

-$50,472.08(M) (YOY)

-297.20% (YOY)

Power Spend
($ 0 M)

+$15,040.72 (M) (YOY)

+12.21% (YOY)

Onshore Oil & Gas
($ 0 M)

+$4,420.09 (M) (YOY)

+5.93% (YOY)

Metals & Minerals
($ 0 M)

– $18,543.05 (M) (YOY)

-119.89% (YOY)

Pharma & Biotech
$ 0 M

-$4,946.69 (M)(YOY)

-35.71% (YOY)

Industrial Production & Capacity Utilization

Industrial Production Index

(For June 2024)

Total Industrial Production Index
0

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.

+1.56% (YOY)

Monthly 2022 vs 2023 vs 2024:

Production by Industry:

Manufacturing
0

+1.1% (YOY)

Mining
0

-0.6% (YOY)

Business Equipment
0

-1.2% (YOY)

Materials
0

+1.5% (YOY)

Construction
0

-0.4% (YOY)

Capacity Utilization

(For June 2024)

Total Capacity Utilization Index
0

The percentage measure of how efficiently a country or business is using its potential manufacturing and production capabilities.

-0.25% (YOY)

Monthly 2022 vs 2023 vs 2024:

Capacity by Industry:

Manufacturing
0

+1.3% (YOY)

Mining
0

+0.1%(YOY)

Industrial production rose 0.6 percent in June after advancing 0.9 percent in May. For the second quarter as a whole, industrial production increased at an annual rate of 4.3 percent. Manufacturing output moved up 0.4 percent in June and rose 3.4 percent (annual rate) in the second quarter. In June, the indexes for mining and utilities posted gains of 0.3 percent and 2.8 percent, respectively. At 104 percent of its 2017 average, total industrial production in June was 1.6 percent above its year-earlier level. Capacity utilization moved up to 78.8 percent in June, a rate that is 0.9 percentage point below its long-run (1972–2023) average. percent higher than its year-earlier level. Capacity utilization moved up to 78.7 percent in May, a rate that is 0.9 percentage point below its long-run (1972–2023) average.

Industrial Labor

Manufacturing Sector Unemployment Rates

(For June 2024)

Manufacturing Unemployment Rate
0 %

Indicates the percentage of individuals in machinery manufacturing who are 16 years or older and are nonagricultural private wage & salary workers without a job.

+19.23% (YOY)

Monthly 2022 vs 2023 vs 2024:

Unemployment By Manufacturing Subsector:

Machinery
0 %

+17.24% (YOY)

Food
0 %

+6.97% (YOY)

Chemical
0 %

+36.36% (YOY)

Petroleum & Coal
0 %

+200% (YOY)

Electrical Equipment
0 %

+80.48% (YOY)

Computer & Electronic
0 %

+110% (YOY)

The industrial sector in the U.S. is experiencing robust job growth. According to the U.S. Bureau of Labor Statistics, the current unemployment rate stands at 3.1%, reflecting strong hiring across the nation. Engineering jobs have seen a slight decline, losing 8,000 positions but gaining 4,900 in other areas. Meanwhile, STEM fields have added 24,200 jobs. Post-pandemic recovery is evident in the manufacturing sector, which has regained many of the 1.4 million jobs lost during the initial outbreak. This resurgence is more pronounced in durable goods manufacturing. Additionally, sectors like manufacturing are witnessing lower resignation rates, suggesting increased job stability and higher employee retention.

Manufacturing Sector Producer Price Index

(For June 2024)

Manufacturing Producer Price Index
0

The producer price index quantifies the percentage fluctuation in prices that domestic producers receive for goods and services.

+0.54% (YOY)

Monthly 2022 vs 2023 vs 2024:

PPI By Manufacturing Subsector:

Machinery
0

+3.40% (YOY)

Food
0

+1.76% (YOY)

Chemical
0

-1.76% (YOY)

Paper
0

-0.57% (YOY)

Petroleum & Coal
0

-6.60% (YOY)

Electrical Equipment
0

+2.89% (YOY)

Computer & Electronic
0

+2.78% (YOY)

Shipping

 

(For June 2024)

Dry Van Spot Rates
$ 0

-0.96% (YOY)

As of June ’24

Flatbed Spot Rates
$ 0

-3.46% (YOY)

As of June ’24

Dry Van Load-To-Truck Ratio
0

+34.85% (YOY)

As of June ’24

Flatbed Load-To-Truck Ratio
0

+10.15% (YOY)

As of June ’24

The dry van load-to-truck ratio has remained stable, closely aligning with last year’s metrics after a 4% weekly decrease last month. Despite this, it remains 5% higher than the average of years not influenced by the pandemic since 2017. A decrease of 6% in carrier equipment posts contributed to a slight 2% week-over-week increase in the load-to-truck ratio, now at 4.34. Regarding linehaul spot rates, the national average for dry vans has stayed relatively flat throughout most of June, averaging $1.66/mile, mirroring last year’s rates with 6% fewer spot market loads moved during the same time period last year.

Environmental / Sustainability

(For March 2024)

Industrial CO2 Emissions

This is a monthly indicator displaying the amount of CO2 emissions in the industrial sector in Million of metric tons.
Metrics Tons of CO2 Emitted
0 M

-2.04% (YOY)

Monthly 2022 vs 2023 vs 2024:

Metric Tons of CO2 By Energy Type:

Coal
0 M

-20.6%(YOY)

Natural Gas
0 M

-2.0% (YOY)

Petroleum
0 M

-20.6% (YOY)

Pharma & Biotech
0 M

-13.7% (YOY)

Industrial Energy Consumption

(For March 2024)

This is a monthly indicator displaying the amount of Energy consumed in the Industrial sector in Trillions of btu (british thermal units)
BTU's of Energy Consumed
0 T

-2.0%Tbtu (YOY)

Monthly 2022 vs 2023 vs 2024:

BTU’s of Energy Consumed by type:

Fossil Fuels
0 T

-20.6%Tbtu (YOY)

Petroleum
0 T

-3.1%Tbtu (YOY)

Renewable Energy
0 T

-13.7%Tbtu (YOY)

Electricity
0 T

-2.4%Tbtu (YOY)

Electrical System Energy Losses
0 T

-3.0%Tbtu (YOY)

Gas & Electricity Costs

(For March 2024)

Natural Gas Prices (Dollars per thousand cubic feet)
$ 0

-$26.73%(YoY)

Average Prices of Electricity (Cents per Kilowatthour, Including Taxes)
$ 0

-$0.77%(YoY)

Fossil Fuels

  • Coal consumption and production continue to decline in the U.S., with significant reductions in coal-fired power generation expected. A projected decrease of 19% in coal usage for power generation is anticipated due to increased retirements of coal plants and a shift towards renewable energy sources.

Renewable Energy

  • Renewable energy sources, particularly solar, are significantly increasing their share of electricity generation. Solar power generation is expected to grow by 43% through 2024. Other renewable sources like wind and hydropower are also on the rise, contributing to a greater share of the energy mix and reducing dependence on fossil fuels.

Electricity

  • The trend in electricity generation is moving away from coal, which is expected to see an 8% reduction. This gap is being filled by natural gas and renewables, which are steadily increasing their contributions to the energy mix.

Petroleum

  • The petroleum market remains volatile with fluctuations driven by geopolitical tensions and supply chain disruptions. Despite this, a stabilization of prices is expected due to a slight increase in production coupled with a small decrease in demand.

Natural Gas

  • Natural gas usage peaked in January 2024 due to cold weather but is expected to stabilize as weather conditions improve. The production of natural gas has faced some disruptions but is expected to normalize soon.

Crude Oil

  • U.S. crude oil production saw a peak in December 2023 but experienced slight disruptions. Stability is expected to continue through 2024 despite these challenges.

Coal

  • The production of coal in the U.S. is forecasted to decline by 19% in 2024 as the sector continues to shrink. Coal’s role in electricity generation is decreasing, favoring more sustainable energy sources.

 

This summary provides a comprehensive overview of the current trends and future projections within these energy sectors, reflecting ongoing shifts towards more sustainable energy practices.

Space

Technology

The highlights from the “Manufacturing Alliance 2024 Digital Transformation Report” include:

  • Investment in Modernization: U.S. manufacturing continues to invest heavily in modernizing its factories and machinery. Investments have reached record highs, supported by government grants from the CHIPS and Science Act, with substantial funds allocated to major tech companies for operations in Arizona.
  • Digital Transformation Initiatives: Manufacturers are embracing digitalization to tackle supply chain disruptions, demand fluctuations, and talent shortages. Most have adopted or are implementing predictive analytics for supply chain planning and other digital tools to enhance operational efficiency.
  • Fragmented Progress: While there is significant movement towards digital transformation, progress remains siloed within organizations. Long-term digital transformation strategies often lack detailed business cases, leading to disconnected efforts.
  • Talent Challenges: There’s a continuous struggle with acquiring and retaining talent knowledgeable in emerging technologies. Manufacturers emphasize the importance of aligning product development with manufacturing processes to expedite innovation and maintain competitive advantage.
  • Strategic Roadmap and Business Case Issues: Many manufacturers report that their digital transformation strategies do not have a well-defined business case, particularly in areas like supply chain optimization, where actions are often reactionary rather than strategically planned.
  • Technology and Collaboration: Effective digital transformation requires robust collaboration across functions. Manufacturers are focusing on integrating digital technologies into every stage of production and have realized the importance of cross-functional collaboration to overcome the challenges of digital transformation.

 

This report highlights the varying degrees of digital transformation across the manufacturing sector, illustrating both the strides made and the significant challenges that remain, particularly in terms of strategic alignment and talent management.

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Sources:

  • Unemployment Rate: https://data.bls.gov/timeseries/LNU04032232?amp%253bdata_tool=XGtable&output_view=data&include_graphs=true
    • Petroleum & Coal: https://www.bls.gov/iag/tgs/iag324.htm
    • Chemical: https://www.bls.gov/iag/tgs/iag325.htm
    • Computer & Electronics: https://www.bls.gov/iag/tgs/iag334.htm
    • Electrical Equipment: https://www.bls.gov/iag/tgs/iag335.htm
    • Machinery: https://www.bls.gov/iag/tgs/iag333.htm
  • Industrial CO2 Emissions: https://www.eia.gov/totalenergy/data/monthly/pdf/sec11_7.pdf
  • Industrial Energy Consumption: https://www.eia.gov/totalenergy/data/monthly/pdf/sec2_11.pdf
  • Natural Gas Price: https://www.eia.gov/totalenergy/data/monthly/pdf/sec9_15.pdf
  • Electricity Price: https://www.eia.gov/totalenergy/data/monthly/pdf/sec9_11.pdf
  • Dry Van Spot Rates: https://www.dat.com/trendlines/van/national-rates
  • Flatbed Spot Rates: https://www.dat.com/trendlines/flatbed/national-rates
  • Dry Van Load to Truck: https://www.dat.com/trendlines/van/demand-and-capacity
  • Flatbed Load to Truck:  https://www.dat.com/trendlines/flatbed/demand-and-capacity
  • Project Fallout: https://www.industrialinfo.com/dash/gapMenu.jsp
  • Project Spending: https://www.industrialinfo.com/dash/industryMenu.jsp
  • Industrial Production and Capacity Utilization: https://www.federalreserve.gov/releases/g17/current/default.htm

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