KC Fed April manufacturing index 31 vs 28 expected


Kansas City-area manufacturing survey data

Kansas City-area manufacturing survey data
  • Prior was 26
  • The index of prices paid for raw materials compared to a month ago also reached the highest level in survey history.
  • Full report

Comments in the survey:

“It is very difficult to handle the increased business with supply
chain issues across all materials and finding anyone who wants to work.
The federal government has incentivized people to stay home and not be
productive.”

“Stimulus and increased unemployment money are
wrecking the labor pool. Lower level employees are quitting to make just
as much not working.”

“Unemployed workers have no incentive to return to work given the COVID bonus payments.”

“Entry level pay will need to be increased. This will create pressure on all other positions.”

“We
believe the shortage of workers is not an impact from the 2nd stimulus
as much as a systematic problem of the gig economy and simply not enough
workers for unskilled and critical skill positions. We are focused on
retention.”

“We are facing significant supply chain problems due
to COVID-19 issues, tariff issues, and the weather problems in Texas
earlier his year.”

“Steel market needs to become stable. Steel producers recording record profits, while downstream suffers margin erosion.”

“Largest
raw material provider is refusing to deliver previously accepted
purchased orders at accepted prices – demanding 18% price increase to
fill previously accepted orders of flat rolled USA stainless steel.”

“We
could greatly grow our business if it were not for steel and labor
issues. We could get more orders and employ more people. Supply chains
are a mess and we cannot get people to apply. We pay upwards of $20 or
more per hour with full benefits.”

“Liquidity is the BIGGEST
issue. Ramp up of production is stressing cash more than usual since we
depleted cash during the downturn more than what would have been
typical.”

“The labor shortage is driving up the price of most proteins in food manufacturing.”

These comments are are really something. I don’t know if they could possibly be more inflationary.

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