Composites industry begins 2022 with a burst of activity

The Gardner Business Index (GBI): Composites Fabricating increased more than two points to close January at 58.9. A greater level of activity in new orders, production and backlogs all contributed to the month’s overall gain. January’s supplier deliveries reading also increased; however, in the present environment, rising readings indicate weakening supply chain performance.  Those Index components which posted lower readings from a month ago included employment and export orders. In both instances January’s reading fell below 50, indicating contracting activity. Of these, employment activity fell nearly five points to an 18-month low.

Over the last six months, composites fabricators have learned to do more with less.  On a three-month moving average basis, production results compare similarly to those of past business cycle expansions. Unlike any past expansionary cycle, however, production readings in recent months have been restrained by both weak supply chains and a reduced labor force. Finding ways to expand production with fewer workers and limited materials will continue to restrain target levels of production. The result of this imbalance has been made evident by sharply higher backlog levels.