Some of these firms, however, report improved profits through cost reductions. The remaining contacts indicate solid sales gains from a year ago. Manufacturers generally say that they are successfully managing their inventories. A couple of contacts note medical supply markets as a source of rapid growth. A textile manufacturer detects a small improvement in apparel retailing, after several slow years.
Several respondents mention adverse effects of foreign imports.
For example, a maker of high-quality furniture notes that while his own business is thriving, the U.S. furniture parts industry is shrinking because of competition, especially from China. Automotive suppliers indicate a need to develop other products because carmakers increasingly are turning to low-cost offshore suppliers. Exporters tend to be experiencing slow business in Europe, but rapid growth in Asian markets. Most manufacturers report that overall materials prices are similar to or lower than a year ago. Chemicals prices are rising, but contacts indicate that the increases are selective or smaller than a year earlier.