February Metalworking Index
Source: MMS

As efforts to counter COVID-19 affect the global supply chain, Gardner Intelligence is carefully tracking their potential impact on the industry.

The Gardner Business Index (GBI): Metalworking held onto January’s expansionary gain with a repeat 50.2 reading in February. Gardner Intelligence reviewed the six components that make up the Index and found that the reading of 50.2 was supported by a quickening expansion in production, supplier deliveries, new orders and employment. The index was hindered from making further advances by contracting activity in exports and backlogs. 

Gardner Intelligence is also carefully tracking the potential adverse effects that COVID-19, widely known as the coronavirus, is expected to have on the GBI in the coming months. The efforts of Asian governments in January and February — and a widening number of countries since then — to combat the spread of the coronavirus are having a detrimental impact on the world’s supply chain as quarantine measures affect workers, companies and cities.

In the short term, these necessary measures will nevertheless restrict the normal flow of upstream and sub-component goods, which are needed for the proper functioning of the manufacturing sector.

The Metalworking Index is unique in its ability to measure just the metalworking manufacturing industry on a monthly basis. This means that the Index will help us to quantify both the negative impact from the virus at present along with the timing and strength of manufacturing’s eventual recovery from it.