Finishing Industry's Rally Extends for Third Month
Appears in Print as: 'Rally Extends for Third Consecutive Month'
The Gardner Business Index: Finishing registered an all-time high of 59.6 for February, its third consecutive month of growth.
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All components of the Finishing Index expanded in February, with production and new orders being the strongest drivers of performance. This strong performance enabled the index to set a new all-time-high reading for the month.
February’s data indicates that finishers are responding to recent months of unusually strong new orders growth and the resulting heightened backlog by increasing their supplier deliveries and hiring. The production reading for the month was higher than at any time since 2012.
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The Gardner Business Index: Finishing further rallied in the second month of 2018, registering 59.6 for February and setting its all-time high. The index was up approximately 7.1 percent from the same month one year earlier.
Data is derived from a monthly survey of finishing shop owners and managers. Gardner Intelligence’s review of the February data indicates that production, new orders and supplier deliveries lifted the index higher, while employment, backlogs and exports pulled the index lower. No components of the index contracted during the month.
Particularly notable was the strong increase in reported supplier deliveries. During the two prior months, new orders growth exceeded that of production, causing backlogs to increase. The latest data for production and supplier deliveries suggest that finishers in February worked diligently with their suppliers to acquire the materials they needed to boost production in light of very strong demand. Furthermore, exports registered their first expansion since December 2014.
Based on all available Finishing Index data, Gardner Intelligence believes this year’s first quarter results could be the best among all first-quarter performances in the history of the index.
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