Composites Index ends volatile 2021 better off than where it started

The Gardner Business Index (GBI): Composites Fabricating declined more than three points to end December at 56.8. For much of 2021, the Index reported several unusually large swings, increasing 11 points during the first quarter before experiencing a series of sizable, “sawtooth” movements during the second half. At year end the Index finished more than four points above its 2020 reading, but more than seven points below its 2021 high. December’s overall lower reading was the result of slowing expansion among all Index components. Slowing expansion is defined as declining month-to-month readings which remain above a value of 50.

The year-end impact of weak supply chains on the supplier delivery readings inflated the total Index by almost four points. Among other activity components, which notably changed from December 2020 levels, included exports (up five points) and backlogs (up seven points). One area of particular challenge for the industry was employment activity, which ended the year near where it started after experiencing a brief surge during the first half of 2021.