From The Economist:
A poll released on May 5th by YouGov in partnership with The Economist shows that, for the first time since the coronavirus pandemic began, Americans are split on whether the economy is on the rise or in decline. The survey, conducted between May 1st and May 4th, asked 1,500 American adults, “Overall, do you think the economy is getting better or worse?” Roughly 30% said the economy was on the upswing, 30% said it was trending downwards and 28% said it was about the same. All are within each other’s margin of error.
Read more HERE.
In their May 11, 2021 update story, ZDNet.com offers information about the Colonial Pipeline cyber attack in response to these questions:
1. What is Colonial Pipeline?
2. How did the Colonial Pipeline ransomware attack happen?
3. Why does the Colonial Pipeline ransomware attack matter?
4. Will there be gas shortages?
5. Have any agencies become involved?
6. Who is DarkSide?
7. What happens next?
Get the answers HERE:
A coating of zinc the thickness of a sheet of paper can protect a steel structure for 100 years. Galvanized coating is one of the most durable methods of protecting against corrosion that is currently available.
That’s what Gatto Industrial Platers, Inc. offers, and what George Gatto Jr oversees every day.
George Gatto Jr grew up around his family’s business, but spent ten years in real estate before accepting his father’s standing invitation to join Gatto Industrial Platers.
During his teen years, George Jr worked summers at the family business – which led him to believe that particular work just wasn’t for him.
“I’d spend 10 hours a day working and would go home exhausted, hot and dirty. Making something like $4.50 an hour, before taxes, as a teenager, I decided I’d do better mowing lawns,” he said. “A friend and I started mowing and made more money. That started me thinking about college and what career I’d work in.”
Gatto studied advertising and marketing at Drake University, and headed into the real estate industry directly after graduating in 2002 – the very field of work that eventually led the Gatto Family into manufacturing.
The older George Gatto was operating a machine shop when the opportunity came up to purchase a plating business in Chicago. Gatto – a tool & die maker himself – had started a small machining business making motorcycle forks.
“He also got into making other things like the polished and plated poles to which velvet ropes for crowd control are attached. Soon he was making different furniture components, and learned how important plating was to each of them,” Gatto Jr. said.
“My dad would go to the plants where they were plating and watch how it was done. The process looked productive, so when the opportunity came up for him to buy a plating company, he did.”
The plating business seller was a member of the Gatto extended family, so Gatto Sr’s father came on to help the effort and ended up staying involved until he was 95 years old, just before passing away in 2018.
In the meantime, the younger George Gatto Jr said he was struggling in a very difficult real estate market during the 2008 economic recession and its aftermath. One day, he accepted his dad’s invitation to join him at a lecture series hosted by the Technology & Manufacturing Association.
During the dinner conversation, other TMA members began asking George Jr why he continued in the struggling real estate industry when his father was nearing retirement age – and would soon be taking his industry knowledge with him.
“My dad was thinking about what his future was, so these guys heard this for awhile from my dad. They said to me, ‘Listen, you know you’re at a perfect point your life where you know you’ve been out working, and you’ve got maybe a five year window if you want to do this,’” Gatto Jr said. “’It’s going to be gone, they said, and you would have passed up a good opportunity.’”
The next day after the TMA event, George Jr picked up the phone and shocked his father by suggesting they have a conversation about him joining the company.
That was over ten years ago. Now George Gatto Jr is president of Gatto Plating and is serving on the Technology & Manufacturing Association’s Board of Directors.
Gatto Industrial Platers, Inc. has grown exponentially in shop floor size and number of employees. The company moved from a 30,000 square foot two-story building in Chicago to another building they expanded to 200,000 square feet. There are currently 150 employed.
During the COVID crisis, Gatto Industrial Platers fared well, George Jr said. Zinc plating is used in nearly all industries – from medical equipment to household appliances , automotive, heavy equipment to railroad needs.
“Our sales were down, but we didn’t have to think about shutting down or doing anything like that. We did reduce hours and took a hit to sales in the second quarter,” Gatto said. “But we are coming through in good shape.”
Gatto, 41, says his biggest personal challenge these days as president of Gatto Industrial Platers, Inc. is managing his time. He’s busy every day answering business questions, coming up with industry solutions and strategizing the company’s future – but he also has young family demands.
The Gattos have three boys – ages five, three and one. The pressures mounted during COVID as his wife pushed ahead in her career while together they juggled childcare.
Assistance via email from the Technology & Manufacturing Association was especially appreciated during the early days of the COVID crisis, he said. It helped keep the company’s decision-makers informed as to what state and federal government were doing while team members dealt directly with personnel issues that had never been an issue previously – and helped to answer crucial questions few had time to find on their own.
Being a part of a trusted association network before crises erupted proved to be especially valuable during those early COVID days, he said.
“TMA provided information about what was going on, and what others were doing in these situations. We could take ideas from what everybody else said, and apply that to what worked for us, like where to get needed supplies. That part of TMA is extremely valuable because you build those relationships in a time when you don’t you know necessarily need them, but they’re there when you do need them.”
Gatto says he’s hoping to lead the business to double within the next five to 10 years – and that he will be counting on his involvement with fellow manufacturers in TMA to help him achieve that goal.
“We have the infrastructure to grow that much. I’m interested in developing the technology here over the next few years, and I’ll be looking to others in TMA for ideas on how they’ve updated their companies’ equipment,” he said.
While he may not be able to get as involved in TMA Young Leader activities as he was before his three sons came along, Gatto says he plans to continue to be involved in the TMA board for the next few of years.
“I know firsthand how important TMA networking can be,” he said. “It changed my career path – something I never expected to happen.”
More information about Gatto Industrial Platers, Inc is available at www.gattoplaters.com. The company is located at 4620 W. Roosevelt Road in Chicago.
From TMA's March/April 2021 News Bulletin. Profile and photo by Fran Eaton.
(Tempe, Arizona) — Economic activity in the manufacturing sector grew in April, with the overall economy notching an 11th consecutive month of growth, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.
The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee:
“The April Manufacturing PMI® registered 60.7 percent, a decrease of 4 percentage points from the March reading of 64.7 percent. This figure indicates expansion in the overall economy for the 11th month in a row after contraction in April 2020. The New Orders Index registered 64.3 percent, declining 3.7 percentage points from the March reading of 68 percent. The Production Index registered 62.5 percent, a decrease of 5.6 percentage points compared to the March reading of 68.1 percent. The Backlog of Orders Index registered 68.2 percent, 0.7 percentage point higher compared to the March reading of 67.5 percent. The Employment Index registered 55.1 percent, 4.5 percentage points lower than the March reading of 59.6 percent. The Supplier Deliveries Index registered 75 percent, down 1.6 percentage points from the March figure of 76.6 percent. The Inventories Index registered 46.5 percent, 4.3 percentage points lower than the March reading of 50.8 percent. The Prices Index registered 89.6 percent, up 4 percentage points compared to the March reading of 85.6 percent. The New Export Orders Index registered 54.9 percent, an increase of 0.4 percentage point compared to the March reading of 54.5 percent. The Imports Index registered 52.2 percent, a 4.5-percentage point decrease from the March reading of 56.7 percent.”
Fiore continues, “The manufacturing economy continued expansion in April. Survey Committee Members reported that their companies and suppliers continue to struggle to meet increasing rates of demand due to coronavirus (COVID-19) impacts limiting availability of parts and materials. Recent record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy. Worker absenteeism, short-term shutdowns due to part shortages, and difficulties in filling open positions continue to be issues that limit manufacturing-growth potential. Optimistic panel sentiment increased, with 11 positive comments for every cautious comment, compared to an 8-to-1 ratio in March. Demand expanded, with the (1) New Orders Index growing at a strong level, supported by the New Export Orders Index continuing to expand, (2) Customers’ Inventories Index hitting another all-time low and (3) Backlog of Orders Index continuing at a record-high level. Consumption (measured by the Production and Employment indexes) indicated some cooling, posting a combined 10.1-percentage point decrease to the Manufacturing PMI® calculation. All top six industries reported moderate to strong consumption expansion. The Employment Index expanded for the fifth straight month, but panelists continue to note significant difficulties in attracting and retaining labor at their companies’ and suppliers’ facilities. Inputs — expressed as supplier deliveries, inventories, and imports — continued to support input-driven constraints to production expansion, at lower rates compared to March, due to an undesired inventory draw down. Inputs negatively contributed to the PMI® calculation, by a combined 5.9 percentage points. The importation of items marginally slowed in the period, driven by port backlogs. The Prices Index expanded for the 11th consecutive month, indicating continued supplier pricing power and scarcity of supply chain goods.
“All of the six biggest manufacturing industries — Fabricated Metal Products; Chemical Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; Transportation Equipment; and Petroleum & Coal Products, in that order — registered moderate to strong growth in April.
“Manufacturing performed well for the 11th straight month, with demand, consumption and inputs registering strong growth compared to March. Labor-market difficulties at panelists’ companies and their suppliers persist. End-user lead times (for refilling customers’ inventories) are extending. This is due to very high demand and output restrictions, as supply chains continue to respond to strong demand amid COVID-19 impacts,” says Fiore.
All 18 manufacturing industries reported growth in April, in the following order: Electrical Equipment, Appliances & Components; Textile Mills; Furniture & Related Products; Machinery; Fabricated Metal Products; Primary Metals; Miscellaneous Manufacturing; Chemical Products; Plastics & Rubber Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; Nonmetallic Mineral Products; Apparel, Leather & Allied Products; Transportation Equipment; Paper Products; Petroleum & Coal Products; Printing & Related Support Activities; and Wood Products.
WHAT RESPONDENTS ARE SAYING
The recovery has yet to arrive at Boeing. In its first-quarter 2021 earnings, the aerospace manufacturer revealed a net loss of $561 million or $0.92 per share, its sixth consecutive quarterly loss. Boeing’s loss from operations was $83 million, its operating margin was -0.5%, and its operating cash flow was negative $3.4 billion.
According to Boeing, the loss was mainly driven by lower deliveries of the company’s 787 jet, partially offset by more deliveries of the company’s 737. The company delivered 77 planes in the first quarter for $4.3 billion in revenue, but lost $856 million in operating costs to deliver an operating margin of -20.1%.
From Industry Week
From Industry Week -
Toyota’s U.S. branch announced April 28 it would invest $803 million more in its Princeton, Indiana location to build two new SUVs there. The money, Toyota says, will be used to prepare the factory for the new vehicles and train the expected 1,400 new employees to produce them. Toyota Motor Manufacturing, Indiana, currently employees 7,296 people, and Toyota says the 23-year-old plant has received $5.8 billion in investments so far.
In a statement, Toyota said the new SUVs would be “electrified” and touted their role towards the company’s long-term carbon-neutral goals, but did not specify if the vehicles would be battery-operated or hybrid models.
More at Industry Week
SCHAUMBURG - The White House announced that President Biden will nominate Doug Parker, current chief of California’s Division of Occupational Safety and Health (Cal/OSHA), to serve as Assistant Secretary of Labor for the Occupational Safety and Health Administration (OSHA).
Parker had recently served on Biden’s transition team and previously for the Obama Administration. Biden is still considering whether to issue an emergency temporary standard (ETS) to create a set of enforceable, COVID-19-related workplace safety regulations.
Notably, Parker helped craft the California ETS, which compared to parallel regulations out of Michigan, Oregon, and Virginia, is considered the most burdensome for employers. More HERE.
SCHAUMBURG - The J.P. Morgan Global Manufacturing PMI rose from 53.9 in February to 55.0 in March, the fastest pace since February 2011. Overall, manufacturers remain very upbeat in their outlook for production over the next six months, but they also cite significant supply chain disruptions. Input prices jumped at the swiftest pace since April 2011. More HERE.
SCHAUMBURG - The Illinois Manufacturing Excellence Center (IMEC) recently announced a 3-part event with NASA and its prime contractors to bring new business opportunities to manufacturers in the Chicago region and throughout Illinois. If you are looking to work with NASA and its contractors, you can attend these sessions to learn about the essentials of doing business with NASA’s Marshall Space Flight Center, Johnson Space Center, and its contractors. Registration is required for each event. The three complimentary webinar sessions are as follows:
SCHAUMBURG - The Technology & Manufacturing Association introduced their updated information center in April 2021, with new access for members to online information about the organization's events.