The semi-annual forming and manufacturing workshop consumption report for the first half of 2024 has been released. TUBE CHINA 2024 has learned that the study focuses on many small and medium-sized brands. According to the report, some brands have maintained relatively stable production capacity over the past year and look forward to future development, while others have seen a continuous decline in turnover.

The reasons for these trends are complex, partly due to job market issues, as well as inflation and supply chain problems.

One important indicator for measuring overall manufacturing performance is capacity utilization. Traditionally, at the national level, a capacity utilization rate between 80% and 85% is considered ideal. This data implies that machines are being fully utilized and labor productivity is high.

TUBE CHINA 2024 learned that a production efficiency below 80% indicates inefficiencies. The report shows that the machinery utilization rate of the respondents is even lower than the national standard, at 67.09%. This doesn’t necessarily mean inefficiency, as the survey targets smaller companies. These companies often spend more effort adapting to new technologies and handling employee turnover issues, which also impacts production.

The report also shows that 33.2% of respondents indicated an increase in output, while 21.2% held the opposite view. The majority (45.6%) felt that production capacity remained unchanged and considered the factory capacity to be stable.

Another measure of production activity is the index of new orders, such as those from the Institute for Supply Management and S&P Global, which track purchasing patterns in the business world. Numbers above 50 indicate growth; below 50 signals a contraction in production capacity.

Earlier this year, the index in the United States was below 50, but in the past three months, the U.S. production index has exceeded 50. The report shows that compared to 2023, 33.6% of brands have seen an increase in orders. Another 40.8% of shops believe their brand’s capacity has remained stable, while 25.6% of stores have experienced a decline in the number of new orders produced.

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