Purolator International Long Island Supply Chain Index: Over 90% of Long Island Manufacturers Expect Growth or Stability for their Business

JERICHO, N.Y., April 30, 2019 /PRNewswire-PRWeb/ -- Purolator International, a leading provider of North American logistics, today released the 2019 Purolator International Long Island Supply Chain Index data. The survey asks Long Island manufacturers to anticipate their business performance in the coming six months. The responses are converted into an index ranging from 0 to 100 (complete decline to complete expansion). For 2019, the overall Index summary is 67.5, an increase from the last Index rating of 61.6 and a strong indicator of favorable future business conditions.

Long Island manufacturers expressed optimism in all areas covered by the Index, but it is especially strong when it comes to new orders, production and hiring.

Almost two-thirds (64%) of respondents expect new orders to increase in the next six months, a marked increase from the 53% reported in 2017. Another 30% expect new orders to remain the same, translated to mean that over 90% of Long Island manufacturers anticipate growth or stability within their business for the coming months. Similarly, over half (54%) of Long Island manufacturers expect production levels to increase, and 42% expect it remain the same.

Expectations for growth in employment also improved noticeably over the last year. In the last year, 66% of surveyed companies had hired one or more new employees, and 36% expect to hire within the next six months. Only 4% plans to decrease headcount.

"We're pleased to report this year's survey data indicated strong positive growth for the local community," said John Costanzo, President, Purolator International. "These findings are in-line with the state's Empire State Manufacturing Index and national Manufacturing ISM® Report On Business®, which means that Long Island is keeping up with national trends."

Another interesting finding from this year's survey is the increase in the number of Long Island manufacturers that are exporting, currently 53% compared to 35% reported in 2017. Export destinations have changed as well. In 2019, the most common region for exports is Asia (41%) a significant increase from 28% reported in the last survey. Canada (34%) and Europe (30%) remain top destinations as well.

Additional findings revealed:

• Executives expected an increase in the price of raw materials in coming months, serving as an additional indicator of growth – 62% of executives expected prices to increase, compared to 4% who expected a decline.
• Companies expect their backlog of orders to increase rather than decrease as further evidence of good business conditions – 49% expected conditions to remain the same, 38% expected backlog of orders to grow.
• The majority expected inventory levels to remain the same (58%), with more expecting an increase (28%) versus a decrease (14%).

Long Island Manufacturers Voice Their Opinions

In addition to the Index questions, this year's survey also asked Long Island manufacturing executives and leaders to voice their opinions on the future of manufacturing on Long Island, where growth will occur, how the local government and business groups can better support Long Island manufacturing, and how Long Island is keeping pace with the adoption of advanced manufacturing and/or robotics.

Generally, respondents were pretty evenly split on whether they felt more optimistic about Long Island manufacturing than 10 years ago with 55% not more optimistic and 45% more optimistic. Those who responded with less optimism were then asked why they believe Long Island manufacturing was weaker than in the past. The most common response was the high cost of doing business on Long Island (66%), followed by a general decline in American manufacturing (27%) and a lack of skilled labor (17%).

Manufacturing executives were then asked what business groups and government could do to better support Long Island manufacturing. The vast majority (73%) suggested tax relief programs, 32% want more education and training, 24% replied grant programs, and 24% favorable legislation.

When asked what manufacturing sectors on Long Island have the most potential for future growth, the most popular response was medical care equipment and devices (35%), followed by aerospace (32%), biotechnology (23%), and computer and electronic components (23%).

Lastly, survey respondents felt pretty certain that advanced manufacturing and robotics were the future of the industry, with 80% expecting local adoption. To date, 47% of Long Island manufactures said their company had digitized some of the manufacturing process, and 75% of those respondents had been given or provided training on the new technology.

The Purolator International Long Island Supply Chain Index is an annual survey of Long Island manufacturers' business forecast for the six months ahead. The survey results announced today reflect Long Island manufacturers' plans through summer 2019. The survey reached 106 Nassau and Suffolk County manufacturing leaders who participated in the phone survey conducted by The Ohio State University. Data was collected between December 11, 2018 and March 25, 2019. Stony Brook University designed the survey and evaluated the results. The margin of sampling error for the complete set of data is ±9.5 percentage points.

For a copy of the report please click Purolator International Long Island Supply Chain Index.

About Purolator International
Purolator International is a subsidiary of Purolator Inc., a leading integrated freight, package and logistics solutions provider in Canada. Purolator International specializes in the air and surface forwarding of Express, Freight and Parcel shipments, customs brokerage, and fulfillment and delivery services to, from and within North America. Purolator International has received numerous industry awards for its superior service and innovative solutions, including "100 Great Supply Chain Projects" by Supply & Demand Chain Executive magazine, "Top 100 Great Supply Chain Partners" by Supply Chain Brain magazine, "Top 100 3PL Providers" by Inbound Logistics, and Logistics Management's "Quest for Quality Award." In addition to facilities throughout New York, Purolator International has locations in key U.S. markets including Atlanta, Baltimore, Boston, Buffalo, Charlotte, Chicago, Cincinnati, Cleveland, Columbus, Denver, Dallas-Fort Worth, Detroit, Nashville, Newark, Houston, Indianapolis, New York, Los Angeles, Kansas City, Memphis, Miami, Milwaukee, Minneapolis, Philadelphia, Phoenix, Pittsburgh, Raleigh-Durham, San Diego, Seattle, San Francisco, Salt Lake City, and St. Louis.

For more information about Purolator International, visit http://www.purolatorinternational.com.

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SOURCE Purolator International, Inc.

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