And its here

US manufacturing slumped to a 26-year low in November, highlighting the abrupt downturn in the world's biggest economy, a survey showed Monday.
The Institute of Supply Management said its manufacturing index slumped 2.7 points to 36.2 percent, far below the 50 percent level that separates expansion and contraction. The level was the lowest since May 1982.
New orders fell even further to a level of 27.9 percent, suggesting the worst may not be over yet for the sector.

Shocking Jobless Rate Numbers In

Jobless rates are at a 14 year high of 6.5% in the U.S. General Motors is teetering on failure. I'm curious to what people think about the economy right now. I'm busier than ever filling positions. Luckily the downturn hasn't hit my industry but undoubtedly it will. I'm just rambling here.

Is the sky falling?

What a ride the market has taken us on lately. Today the "Bailout Bill" was rejected in Congress and sent the Dow tumbling 770 points, the largest point drop in history. In my humble opinion we are in for a rough ride the next few years. By we I mean Joe and Jane American. Ironically, I'm not disappointed the bill failed. I think its time for bank and lenders to reap what they have sown. Unfortunately that will hurt the little guy like me and presumbably you. Ultimately, the markets correct themselves. If we fail after a $700B infusion then we will be staring a Depression like era in the face. God Bless America, we need all the help we can get.

2 new postions available - click on my ugly mug

August Unemployment Report

A vicious cycle is developing in the job market. More businesses, seeing orders and sales slow, are turning cautious and laying off workers. That's been the case in manufacturing, and it's now spreading into the service sector. As layoffs increase, incomes shrink and so does consumer spending, inducing firms to continue cutting payrolls. There are exceptions, but not many, with gains in health care, mining and government. As a result, net jobs show a loss so far this year of 605,000, with more to come before conditions reverse in 2009. The unemployment rate, now up to 6.1%, will rise near 6.5% next year. The jump is disturbing, but so far during this downturn, it remains well below the 8% to 10% peaks posted during previous recessions.

Source: Kiplinger

Knoxville Here We Come

I'm proud to announce the addition of Brad Parish to the Southern Manufacturing Search team. Brad brings multiple years of recruiting experience in the engineering space and will cover the Knoxville, TN market as well as the surrounding region. Please stay tuned to http://www.southernmfgsearch.com/ and this blog for more information including job postings and other pertinent information.

July numbers are in.

While industrial production increased only 0.2% in July after having advanced 0.4% in June, manufacturing fared better gaining 0.4%. This figure was boosted by a rise of 3.6% in the production of motor vehicles and parts.

Excluding motor vehicles and parts, the index for manufacturing increased 0.2%.

In July, the capacity utilization rate for total industry edged up to 79.9%, a level 1.1 percentage points below its average for 1972-2007.

Source: IndustryWeek

June Data In

Industrial production in the U.S. rose .5% in June according to the Federal Reserve however the 2nd quarter total fell below the 1st quarter total by a 3.1% annualized return. Manufacturing output gained .2% in June boosted by a 5.4% output increase in motor vehicles and parts. Remember that in June many automakers got back striking union members which attributed to the industry boost in output. Dark days ahead as GM's announcement this week will certainly effect production.

U.S. Manufacturing still continues to underperform the general economy and would be in dire straits were it not for the weak dollar.

Productivity increase? Really?

I read an interesting article in the New York Times today. They were quoting a survey from a company called Basex and to say the least I was surprised.

U.S. companies lose $650B a year in productivity. That's Billion with a B. They term the phenomena "information overload." The average American worker turns to their Outlook or email client over 50 times a day. Instant messaging takes the productivity killer title with a suprising average of 77 times a day used. I find that number hard to believe.

Overall the message is clear. Are the conveniences of 2008 helping or hindering our productivity? Well I just killed 10 minutes on this blog....

Industrial Sales Positions available

This is a video job description from my YouTube channel where I post many of my jobs. I put it here primarily because this is the type of sales position I recruit for quite a bit. Take a look...

More On LeanSouth

More May Data Available

The Federal Reserve reports that industrial production fell 0.2% in May, an improvement over April's 0.7% drop. Manufacturing output was unchanged in May.

In terms of the manufacturing world, the recession seems to only be prevalent in industries supplying the construction services and automotive (OEM and parts) industries. Automotive output is down 10% from February.

Now Hiring

My business is growing and I'll be launching a lean manufacturing consulting practice later in 2008. The concept is called LeanSouth and will be the contract/consulting arm of Southern Manufacturing Search.

I'm looking for an experienced recruiter in the Atlanta, Birmingham, Orlando or Charlotte markets preferably. The candidate I'll be interested in will have a large network of contacts in the lean manufacturing, Six Sigma and other continuous improvement arenas.

Contact me at mark@southernmfgsearch.com for more information. Thanks!

U.S. Manufacturing Flat in May

Economic activity in the manufacturing sector failed to grow in May, while the overall economy grew for the 79th consecutive month, according to the Manufacturing ISM Report On Business released on June 2. The Institute for Supply Managment's PMI index registered 49.6%, 1 percentage point higher than the 48.6% reported in April.

A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.

The R Word

Here's my take on the "recession". The U.S. is effectively beginning a prolonged slowdown that you will be able to deem a recession over the next 3 years. This will be gradual as production outlooks prove that yes 2008 will show a downturn from 2007 but projections for 2009 remain optimistic.

I feel there is a bit of overreaction among Americans. Then again look at the variables affecting us right now - a pending election with no clear front runner, the credit crisis and foreclosure scenarios, and don't get me started on the price of gas.

Personally I'm not concerned and feel that we will naturally ease through this, while it may take 3-5 years to do. This is not a correction, as we have had nothing to correct that resembles the late 90s .com boom.

Long story short - take a chill pill, be a vigiliant and cautious consumer and things will be just fine in the long run.

Welcome aboard!

My name is Mark Gragg and I own a niche recruiting firm based in Fort Worth, Texas. Primarily I recruit in the industrial, manufacturing and distribution/logistics industries. More specifically I work with organizations in completing lean manufacturing initiatives. I do try to limit my services to companies who focus business in the South.

Please visit www.southernmfgsearch.com for more information on what I do. In my next blog post I'll release a press release regarding the launch of LeanSouth.

Here is a little something from my website to chew on for general info on my services...

People drive business. Regardless of improvements in automation, lean manufacturing techniques and the like, today's business climate is driven by top caliber individuals at the helm of the decision making process.

Southern Manufacturing Search recognizes that fact and aims to help your company achieve its goals seamlessly. Our role in your company's success is to provide top caliber individuals that meet your standards and can add value to your bottom line, immediately. After all, manufacturing is a bottom line driven business.

We will work hand in hand with you to identify the perfect specifications to suit your needs and then most importantly identify and attract local, regional or national talent to your organization.
But ultimately you are the decision maker and Southern Manufacturing Search caters each search to your needs including developing a target list of companies and skillsets that you really want, not what you would settle for. You shouldn't have to settle. With Southern Manufacturing Search you won't settle, you will exceed expectations and get on to what your organization does - produce durable goods in a profitable manner.

Industry Focus:
Automotive (OEMs and Tier 1 suppliers)
Industrial and Commercial Machinery
Marine and Shipbuilding
Chemicals and Lubricants
Fabrication and Machining
Metal Forging, Stamping & Foundries
Tool & Die Cast Manufacturing
Rubber and Tire
Plastics and Molding
Construction
Industrial Distribution/Supply Chain Management