Moldmaking Industry Accelerates Into 2022

The Gardner Business Index (GBI): Moldmaking advanced nearly two points in the first month of 2022 to close January at 58.0. The latest reading was supported by accelerating activity in new orders and production. January’s supplier deliveries reading increased by seven points to its highest level since September 2021; however, in the present environment, rising readings indicate weakening supply chain performance. Backlog, employment and export order readings all moved lower for the month; among these three only export orders registered below a level of 50, indicating a contraction in export order activity.  The other measures, which fell, only indicated a slowing expansion in their respective areas of business activity.

In recent months moldmakers have learned to do more with less. This has been made apparent by the combination of historically strong production readings, the simultaneous slowing of employment levels and seemingly inescapable supply chain problems. Over the last four months production readings have averaged nearly 57.5. By historic standards such readings only occur when the industry is in a cyclical expansion. However, the factors which feed production—labor and materials—over a similar period of time have generally worked against expanding production levels.