This Thomas Index Report is sponsored by Hogge Precision Parts, the gold standard in quality and service in custom, standard, and Mil-Spec machining solutions through CNC and screw machining.
Hello again. This week we’re going to take a look at sourcing for Machining-related services by users on Thomasnet.com. Our data shows that sourcing activity for CNC Machining was higher this past week than in any previous week on our platform. This sourcing uptick aligns with what continues to be a booming manufacturing sector, which added 37,000 jobs in July. Over the past year, U.S. manufacturing has added 327,000 jobs, which is the most of any 12-month period since 1995.
In addition to CNC Machining, our data shows that sourcing activity for related categories such as Large Machining, Large Diameter Turning, and Laser Cutting Services are all up over 13 percent month-over-month on our platform.
Our firmographic buyer data shows that three of the top industries driving this upward sourcing trend for CNC Machining are Industrial Supplies Manufacturing, Energy & Utilities, and Aerospace & Defense.
CNC machining is a core process used throughout manufacturing. It’s a tremendously competitive category – there are nearly 12,000 CNC machining providers on our Thomasnet.com platform alone. But the competition is not just about getting new customers – it’s about hiring and keeping the skilled machinists required to fill those jobs and get the work done. This is a huge and growing challenge for the industry. The Bureau of Labor Statistics (BLS) estimates that there will be a need for an additional 29,000 machinists by 2024, as baby boomers continue to retire in huge numbers. The need for skilled machinists is just a fraction of what’s predicted to be a shortage of 2 million skilled workers in the manufacturing industry by 2025. Hey, this is a challenge the industry and our country need to tackle head-on, and here at Thomas, we recently wrote a piece for The Hill that talked about some of the steps Congress can take to ensure that our manufacturers have the skilled workforce to handle the work – not just today, but for generations to come.
Moving on from machining-related services, here’s a look at the top ten industrial product and service categories being sourced on the Thomasnet.com platform over the past four weeks:
- CNC Machining
- Injection Molded Plastics
- Printed Circuit Boards (PCBs)
- Plastic Bottles
- Metal Fabrication
- Tube Fabrication & Bending Services
- Metal Stampings
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Thanks for watching, and I’ll see you next week.