Moldmaking Industry Continues Rebound in October

The Gardner Business Index (GBI): Moldmaking ended October at 61.7, up two points from September’s reading. The Index has registered sequential, expanding activity readings (values above 50) in each month of 2021. October’s gain was broad-based, with accelerating activity reported for backlogs, new orders, production and employment. Similarly, both export and supplier delivery activity registered slowing expansion during this month.

A greater proportion of surveyed moldmakers reported rising backlogs during October than at any time in recorded history, exceeding the measure’s previous 2018 record. Backlog activity readings have risen quickly during 2021 in part because of a collection of protracted production challenges coupled with strong demand. Chief among these is supply chain congestion. Over the last nine consecutive months, supply chain readings—a measure of the timeliness of supply deliveries—have been worse than at any time prior to the pandemic. October’s expanding employment activity may have contributed to the month’s three-point gain in production activity; however, it alone was not enough to close the activity gap between new orders and production and solve the “production deficit” problem which has exasperated the industry throughout nearly all of 2021.