Production Machining Index Improves as Supply Chain Stabilizes
Sharp rise in future expectations signals stronger conditions for 2025.
The Gardner Business Index (GBI) measures the current state of precision machining activity through survey responses covering new orders, production, backlog, employment, exports and supplier deliveries. A reading above 50 indicates expansion; below 50 indicates contraction.
The precision machining industry registered a GBI reading of 44.5 in November 2024. While production dipped slightly to 42.0, new orders held relatively steady at 41.6, suggesting demand patterns may be stabilizing as manufacturers adjust to current market conditions.
The GBI Components Scorecard reports the monthly change rate of primary precision machining market factors contributing to the overall monthly index reading.
Reading the Scorecard:
- Color indicates where a component value falls relative to 50 for the current month. Green indicates expansion; red indicates contraction.
- Shade indicates a value’s distance from 50; the darker the shade, the further from 50.
- Direction indicates a value’s change versus the previous period. Pointing up is always better.
The GBI Future Business Index is an indicator of the future state of the precision machining market from industry respondents regarding their opinion of future business conditions for the next 12 months. Over 50 is expansion and under 50 is contraction.
The Future Business Index surged to 64.9 in November, reflecting significantly improved optimism about 2025 business conditions and largely driven by results of the recent election.
Find the latest precision machining market research and reporting at GardnerIntelligence.com.
