Industry trends have led to higher than expected demand for Daman's custom services, and as a result our custom orders are up 53 percent from last year. We're prepared for growth through the year 2015.
Daman Products offers manifold distributors the tools they need to achieve a level of flexibility in this growing, yet still uncertain, market. We understand the distributor's side of the industry and are well aware of how inventory arrangements can favor suppliers, leading to frustration. Our system helps clients meet demand while still minimizing their inventory commitments. This allows for room to adjust if the market undergoes any sudden shifts.
Manufacturing growth projected to grow
After decades of uncertainty regarding the future of manufacturing and several more recent years of sluggish economic growth, major manufacturing industry players like Daman Products are finally finding reasons to feel confident about the future of the sector in the U.S.
In Pricewaterhouse Coopers' 2014 Manufacturing Barometer for the third quarter, respondents predicted that the manufacturing sector would grow by an estimated 5.6 percent over the next 12 months.
"The projected revenue growth rate among industrial manufacturing companies rose during the third quarter, indicating increased levels of confidence in company fundamentals and competitive positioning," Bobby Bono, PwC's U.S. industrial manufacturing leader, recently told Manufacturing.net. "The improved outlook for company performance ran counter to a decline in sentiment regarding the direction of the economic environment, particularly on the international stage.
There are understood reasons for this growth. The U.S. has recently been home to record-setting energy production, thanks to hydraulic fracturing for oil and natural gas. As energy costs decline, so too does the cost of manufacturing. In addition, manufacturers are finding that the costs associated with outsourcing operations overseas is becoming less sustainable. Combine all of this with increased demand for manufactured goods, and you have the recipe for growth.
Indiana proves that manufacturing still matters
Manufacturing growth is occurring all across the country, but certain states are performing better than others. Of particular note are those states that have managed to cultivate a strong manufacturing sector over the years that has offered consistent support to the overall economy. One of the leading states in this regard is Indiana, Daman's base of operations.
According to a report by industry research firm Manufacturer's News Inc., Indiana gained more than 8,000 new manufacturing jobs between April of 2012 and 2013. This amounts to a 1.4 percent increase. But what is most impressive is that during the following June, the state added more than 4,300 new manufacturing jobs in total, which consisted of about 80 percent of the overall private sector growth in Indiana.
Clearly, the state has been doing something right. It's pro-business policies and excellent location have positioned Indiana to take the lead in domestic manufacturing.
"Indiana is doing better than the nation as a whole," Tom Dubin, president and CEO of Manufacturer's News, told the news source. "The transportation industry in Indiana is especially strong, with Toyota, Subaru and automotive suppliers bouncing back from the economic downturn."
Dubin added that Indiana is "centrally located, and manufacturers need transportation hubs to ship their products all over the world. They need to have access to highways, freightways and waterways."
Though manufacturing accounted for only about 12 percent of the U.S. gross domestic product last year, it made up about 30 percent of Indiana's GDP. No other state has reached such a level. Auto manufacturing is a major contributor to these numbers in Indiana, making up about 5 percent of the total output in 2012. This is likely due to Indiana's position as a transportation hub.
Daman offers solutions during economic shifts
It is always good news to hear about growth in the domestic manufacturing sector. It means increased sales, more profits and additional jobs at a time when all of these things are needed. But industry players must be wary of the bullwhip effect that occurs when manufacturing production exceeds demand. If the overall economy falters and the number of orders falls, many industries could find themselves caught flatfooted with unneeded inventory and inventory commitments.
At Daman, we work hard to adjust our inventory and customer service to meet our customers' changing needs. We process more than 140 custom manifold quotations each week, and we regularly review buying patterns in order to stay on top of demand.
So, are you operating in a state like Indiana, with a rapidly growing manufacturing sector, and wondering about the future and whether it is sustainable? Our Daman Trigger System offers custom manifolds that are easy to purchase, without requiring you to commit to a specific schedule that might be difficult to keep at a later date. We do not have a minimum order size, reducing the need for forecasting. Daman's trigger system is unique and supported by an equally unique culture of continuous improvement.