First Coast manufacturing flattens out in February after recent expansion

After some expansion to start the year, First Coast manufacturers appear to be stagnant in terms of production and other factors in February, according to a University of North Florida (UNF) survey.

UNF Coggin College of Business researchers found that North Florida manufactures did not show much growth last month compared to January. The UNF Jacksonville Economic Monitoring Survey found that several key manufacturing factors contracted. That includes new orders, which fell from the index figure of 56 to 49. Backlogs of work also fell, from 48 to 46, and employment dropped from an index of 51 in January to 48 in February.

Some manufacturing elements expanded slightly, such as output, new export orders and prices.

Albert Loh, interim dean of the UNF business college, oversees the monthly manufacturing survey and concluded that February was generally flat at First Coast companies.

“Jacksonville’s Purchasing Managers’ Index (PMI) of 50 in February indicates a holding pattern, with no significant expansion or contraction in overall manufacturing activity,” Loh said.

February saw several national developments, such as President Donald Trump’s promises to enact trade tariffs, that caused the Jacksonville area to reflect the bigger picture of uncertainty across America.

“The Jacksonville economy mirrors the national trend of stable output but weakened demand. The slight increase in supplier delivery times and input prices, along with continued uncertainty over tariffs, has led businesses to take a cautious approach to inventory management and hiring, contributing to a subdued outlook,” Loh said.

The UNF’s business college conducts monthly surveys of First Coast manufacturers to determine production levels and other factors.

While February saw a slowdown in manufacturing, Loh added that there are areas for improvement that may change in the coming months.

“While manufacturing employment declined slightly, the contraction was less severe than that at the national level, indicating that local manufacturers may be holding onto workers better than their national counterparts. The Business Activity Outlook Index also suggests that manufacturers anticipate some improvement over the next 12 months, though uncertainty around tariffs and economic policy is keeping expectations subdued,” Loh said.

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