UNF manufacturing survey shows expansion among factories in North Florida

Manufacturers report that they’re expanding along the First Coast.

The University of North Florida Jacksonville Economic Monitoring Survey (JEMS) for June showed most manufacturing leaders saying they had a good month. Key elements such as output, new orders, prices and backlogs of work, among others, are on the upswing.

“Jacksonville’s Purchasing Managers’ Index (PMI) registered 54.2 in June, indicating that the region’s manufacturing sector continued to expand,” said Albert Loh, who oversees the JEMS report and is the Associate Dean of the UNF Coggin College of Business.

“A PMI above 50 signals that business conditions are improving, and June’s reading suggests that local manufacturers remained on a positive growth path despite an increasingly uncertain business environment.”

Manufacturing output measured at 60, indicating expansion. It was one of the strongest factors among the 12 elements measured for the report. Loh said that’s a robust indicator for Northeast Florida factories.

“This points to healthy operating conditions, with many manufacturers responding to steady demand by increasing production levels,” Loh said, adding that the Jacksonville area is in line with national output.

“Manufacturing output continued to increase across the country for the eighth consecutive month. Growth was reported in several major industries, including computer and electronic products, machinery, transportation equipment and chemical products.”

UNF researchers from the JEMS project reach out to First Coast manufacturers each month to see where they stand on production and several other factors. Only three of the dozen elements in the survey showed contraction, including employment, business activity outlook over the next year, and finished goods inventory.

The employment element is a sticking point, Loh said.

“Local manufacturers appeared cautious about adding workers despite continued expansion in production and new orders. In Jacksonville, where production, new orders, and order backlogs all remained in expansion territory during June, the employment reading suggests that firms may have been relying on existing workers, overtime, or efficiency gains rather than expanding their workforce,” Loh said.

Despite the ongoing war with Iran and steep fuel prices, Loh concluded that First Coast manufacturers are still looking up when it comes to the economy.

“Several indicators provide reasons for optimism about the Jacksonville economy. Rising new orders and expanding production point to continued customer demand, while increasing order backlogs suggest that manufacturers have a healthy pipeline of future work,” Loh said.