Easing supply chain constraints may open production flow

The Gardner Business Index (GBI): Composites Fabricating fell a modest one point in November to end at 60.1. Of the six measures which constitute the Index, only the supplier delivery reading indicated a significant change, falling nearly six points. For the first time since January, production activity registered at or above the same month reading for new orders activity, closing the longest lasting “production deficit” in the 10-year history of the Composites Index. Moreover, despite the month’s accelerating expansion in production activity, November’s backlog activity reading increased by ½ of a point, setting a five-month high.

A significant decline in the supplier delivery reading is welcomed news for the industry, which, in the present environment, points to improving supply chain performance; in fact, the latest reading marks a recent low for the measure, even though it is nearly 15 points above the pre-pandemic record high. Should supply chain conditions continue to improve, the industry can expect a further fall in supplier delivery readings, as well as a potential increase in those for production and employment, as materials become more available to fabricators.