TEMPE, AZ – Economic growth in the US will continue in 2011, says ISM. Expectations are for a continuation of the economic recovery that began in mid-2009.

The manufacturing sector continues to outpace the non-manufacturing sector and has greater expectations for growth in terms of revenue, the firm says.

The manufacturing sector expects revenues to increase in 16 of 18 industries, while the non-manufacturing sector appears slightly less positive about the year ahead, with 12 of 18 industries expecting higher revenues.

Sixty-five percent of survey respondents expect revenues to be greater in 2011 than in 2010. The panel of purchasing and supply executives expects a 5.6% net increase in overall revenues for 2011, compared to a 7.9% increase reported for 2010.

The 16 manufacturing industries expecting improvement over 2010 – listed in order – are primary metals; fabricated metal products; petroleum and coal products; apparel, leather and allied products; transportation equipment; miscellaneous manufacturing; furniture and related products; plastics and rubber products; machinery; textile mills; wood products; electrical equipment, appliances and components; food, beverage and tobacco products; printing and related support activities; chemical products, and paper products.

Business investment will increase substantially in the manufacturing sector, while investment in the non-manufacturing sector will increase at a lower level.
In the manufacturing sector, respondents report operating at 80.2% of normal capacity, up from 72.8% reported in April 2010.

Purchasing and supply executives predict capital expenditures will increase 14.5% in 2011, compared to a 5.9% increase reported for 2010.

Survey respondents also forecast they will reduce inventories in an effort to improve their purchased inventory-to-sales ratio in 2011.

Manufacturers expect employment to increase 1.8 %, while labor and benefits costs are expected to increase an average of 1.9% in 2011.

Manufacturing purchasers are predicting strength in exports and imports in 2011. They also expect the US dollar to weaken on average against the currencies of major trading partners.

The panel also predicts prices will increase 2.7% during the first four months of 2011, and will increase an additional 1.3% during the balance of the year, with an overall increase of 4% for the year.

Survey respondents expect to realize supply chain improvements through improved inventory/asset management; cost reduction; supplier development/better metrics; supplier consolidation, and better risk management.

PROSPECT, CT – Design-2-Part Shows for design and contract manufacturing released their 2011 schedule. The schedule is highlighted by the show’s first appearance in Houston.

The 2011 show schedule is as follows:

Texas Design-2-Part Show, Feb. 23 and 24, Grapevine, TX.
Southeast Design-2-Part Show, Mar. 16 and 17, Atlanta, GA
Mid-Atlantic Design-2-Part Show, April 13 and 14, Oaks, PA
Greater Chicago Design-2-Part Show, May 3 and 4, Schaumburg, IL
Northern California Design-2-Part Show, May 18 and 19, Santa Clara, CA
Midwest Design-2-Part Show, June 14 and 15, Covington, KY
Mid-South Design-2-Part Show, September 28 and 29, Nashville, TN
Southern California Design-2-Part Show, October 12 and 13, Pasadena, CA
Southern Design-2-Part Show, October 19 and 20, 2011, Kissimmee, FL
New England Design-2-Part Show, November 2 and 3, Marlborough, MA
Southern Texas Design-2-Part Show, November 16 and 17, Houston, TX

Design-2-Part Shows provide design engineers, manufacturing engineers and managers, and purchasers the opportunity to meet contract manufacturers to source custom parts, components, services, and design.

Exhibiting companies will showcase design-through-manufacturing services featuring more than 300 product categories for the metal, plastics, rubber and electronics industries.

For more information, visit www.D2P.com.

SAN JOSE – SEMI issued a call for presenters for technical sessions and presentations at Semicon West 2011, which will take place July 12-14 in San Francisco.

TAIWAN – Smartphone maker High Tech Computer plans to add new suppliers and is currently discussing orders for 2011 with PCB makers.

The move follows the firm’s projection of substantial increases in smartphone shipments, according to published reports.

HTC expects next year’s shipments to hit 45 to 50 million units, up from an estimated 25 million units in 2010.

The company is reportedly looking at Ichia Technologies for flexible PCB.

Existing suppliers include Career Technology, M-Flex and Flexium Interconnect.

HTC is also working with Unitech Printed Circuit Board, Unimicron Technology, and others based in Japan.

TAMPA, FL – DEK and VectorGuard licensee, AGI, have opened a second manufacturing facility in Huntsville, AL.

TORONTO – EMS firm Flextronics is partnering with MEMC Singapore to produce solar photovoltaic panels for SunEdison at Flextronics' facility here.

MINNEAPOLIS, MN – The SMTA has elected members of the board of directors: Michelle Ogihara, Seika Machinery; David Steele, Da-Tech Corp.; and Brian Toleno, Ph.D, Henkel Corp. were elected to the planning committee.

Marie Cole, IBM, was reelected and now serves as vice president of technical programs.

Those remaining on the board include president, Dan Baldwin, Engent; VP technical programs, Marie Cole, IBM; VP communications, Tom Forsythe, Kyzen Corp.; VP membership, Roy Starks, Libra Industries; treasurer, Hal Hendrickson, Nordson Dage; and secretary, Dr. Kola Akinade, Cisco Systems.

Planning Committee members include chair, Jeff Kennedy, Celestica; Dr. Denis Barbini, Universal Instruments Corp.; and Dr. Ning-Cheng Lee, Indium Corp.

Departing directors include Bill Barthel, Plexus Corp.; Joe Belmonte, ITM Consulting; and Dr. Laura Turbini, Research in Motion.

The new term began at SMTAI in late October.

TULSA, OK – EMS provider LaBarge Inc. has been awarded $4 million in contracts from Atlantic Inertial Systems, part of Goodrich Corp. 

SAN JOSE -- The 90-day moving average of worldwide semiconductor sales in October was flat sequentially but rose nearly 20% year-over-year, the Semiconductor Industry Association today reported.

ARLINGTON, VA -- The National Association of Manufacturers took issue with a tax bill being voted on by the US Congress, claiming it would cost businesses money and jobs.

NAM executive vice president Jay Timmons said in a statement: “Manufacturers oppose the Middle Class Tax Relief Act of 2010 because it would result in a tax increase for many manufacturers. The tax relief enacted in 2001 and 2003 played a key role in stimulating our economy as it repealed the estate tax and lowered both the individual tax rates and tax rates on investment.

"Unfortunately, the House bill being voted on today does not include this critical relief.  As a result, in January 2011 many manufacturers will see a top tax rate of nearly 40%, a 164% increase in the dividend tax and the return of a 55% estate tax on family-held companies.

"Over 70% of American manufacturers file as S-corporations or some other pass thru [sic] entity and will be significantly impacted by these higher rates. Americans want jobs, and this bill will only hinder job creation and economic growth.

Timmons said the trade group supports an extension to the 2001 and 2003 tax rates, which are set to expire next year. "Manufacturers strongly support extending the 2001 and 2003 tax rates for all taxpayers. According to the non-partisan Congressional Budget Office, fully extending the 2001 and 2003 tax cuts would add between 600,000 and 1.4 million jobs in 2011 and between 900,000 and 2.7 million jobs in 2012."

ERLANGER, KY ― Seho Systems will launch a US version of its solder training academy in 2011, the company said.

TEMPE, AZ – Economic activity in the manufacturing sector expanded in November for the 16th consecutive month, says the Institute for Supply Management. The PMI dropped 0.3 percentage points to 56.6%.

A reading above 50% indicates the manufacturing economy is generally expanding.

New orders fell 2.3 points to 56.6%, while production decreased 7.7 points to 55%. Inventories were up 2.8 percentage points to 56.7%, and customer inventories grew 1.5 points to 45.5%. Backlogs were 46%, flat with October.

“The manufacturing sector grew during November, with both new orders and production continuing to expand. With the PMI at 56.6%, November's rate of growth is the second fastest in the last six months. Exports and imports continue to support expansion in the sector. Prices moderated slightly during the month, but comments from the respondents express concerns with regard to pricing pressures. The list of commodities in short supply increased, though short supply items are not yet posing significant problems. Manufacturing continues to benefit from the recovery in autos, but those industries reliant upon housing continue to struggle,” said ISM spokesperson Norbert J. Ore.

The overall economy grew for the 19th consecutive month, says the firm.