Things look bright for the manufacturing industry as 2013 closed on a high note, according to the Institute of Supply Management. December marked the seventh consecutive month that the industry showed positive growth and the 55th month of growth for the overall economy.
The new order index as measured by ISM registered 64.2 percent, according to Supply Chain Management Review. While inventories are down slightly, this number could also be seen as positive, according to Bradley J. Holcomb, chair of the ISM Manufacturing Business Survey Committee.
"That means suppliers are having a hard time keeping up with fulfilling stock orders for raw materials," he said. "That is a 'good news' number, too, as it means things are tight and suppliers are running to keep up and they are not quite managing. That is why inventories have fallen, but it is still in well-managed territory."
Improving Inventory With Data Collection
One way suppliers of raw materials can improve inventory is with better data collection software. Data collection allows for better insight into how inventory is moving in and out of the warehouse and can help managers keep up with the increased demand that has been seen with a growing manufacturing industry.