Trade tensions continue to weigh on Texas’s manufacturing outlooks.
The Dallas Federal Reserve’s June Manufacturing Industry survey shows industry leaders are increasingly uncertain about stability, as the future business index fell 12 points to -2.7.
The Austin Regional Manufactures Association’s Ed Latson sees that locally. He explained a big issue for manufacturing is the new NAFTA. Called USMCA, it still needs US House approval. Another problem is the continued trade conflict with China. Latson said, “Business owners are thinking, we might be facing some disruption with our supply chains and our pricing.”
Austin based Origin Biomedical builds medical bags, CEO Richard Martin said the medical market is a bit different than your typical manufacturer and added the company grew by 18{2db634631ef8bd3f096060bc7daa4fc6677d16e616113d8c02bec6b420e3105c} with the hopes to see more of the same this year. “But I will say,” Martin continued, “We are starting to see some deceleration in that expansion. Particularly in China, which is a very big market for us.”
Despite this the Texas Manufacturing Industry saw a growth in output and a slight rise in orders in June. The Fed reports the new orders index grew to 3.7, but noted that’s still below average.
(Photo:Shutterstock/Stephen Finn)
