First Coast manufacturers are reporting another concerning month for production contracting in August, accounting for seven months straight of questionable indicators.
The University of North Florida (UNF[1]) issued its monthly Jacksonville Economic Monitoring Survey (JEMS[2]) report and several manufacturing sectors showed contraction or remained unchanged last month. The August results were slightly better than July’s survey[3], when 10 out of 12 sectors contracted.
But Albert Loh, the interim Dean of the UNF Coggin College of Business[4] who oversees the survey, said there’s still hesitance and wariness among North Florida manufacturers.
“The August Jacksonville Economic Monitoring Survey revealed that both production and employment contracted. Export orders remained steady, inventories remained stable, and supplier deliveries slowed slightly, suggesting that supply chains are stable but strained. Overall, the data reflect a local economy that is stuck in a cautious holding pattern,” Loh said in his summary of the survey.
UNF researchers from the JEMS project reach out to First Coast manufacturing companies each month to see where they stand on production and several other factors.
While many sectors show continued signs of contraction or unchanged production, there were some positive elements to the report. New orders did expand, rising from a 43 index figure in July to 51 in August. That’s a key indicator.
The expansion means “slightly more local manufacturers are seeing an increase in new orders than those seeing a decrease,” Loh said, adding there is still some concern. “While local manufacturers are seeing new orders increase, concerns over tariffs and costs persist, and many companies remain hesitant to ramp up their operations fully.”
Other North Florida manufacturing areas that showed signs of expansion included business activity outlook over the next year, supplier delivery times and average input prices.
However, there are a dozen sectors that the survey measures, and the remaining eight either contracted or remained unchanged in August.
Jacksonville is a multifaceted logistics hub, boasting a seaport with global influence, the intersection of Interstate 95 and Interstate 10 for road shipping, rail companies headquartered in the city, and robust air travel. All those elements are backed up with heavy military activity using those assets at Mayport Naval Station and Naval Air Station Jacksonville, along with other installations.
Loh said that provides the possibility of a resurgence in manufacturing soon, though it’s not guaranteed.
“The region’s strong logistics base and port infrastructure could also help local firms stay resilient if global trade improves. However, significant concerns remain (as) tariffs are driving up the costs of raw materials such as steel, aluminum, chemicals, and packaging materials, customers remain hesitant to commit to large projects, and construction activity is weak, weighing on demand,” Loh said.
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References
- ^ UNF (www.unf.edu)
- ^ JEMS (floridapolitics.com)
- ^ July’s survey (floridapolitics.com)
- ^ Coggin College of Business (www.unf.edu)