Boston, Atlanta, and Dallas, however, report mixed results, and New York notes some slowing in factory activity. Strong new orders, production, and shipments were reported for many manufacturing products, such as heavy trucks, electronic equipment, machinery, and food and biotechnology products. Brisk demand for construction equipment and building materials has continued across the nation, as construction activity remains strong. Similarly, a strong housing market continues to fuel the demand for appliances. San Francisco reports that increased demand from East Asia has helped paper and pulp processors in the Pacific Northwest.
Some sectors continue to report strong foreign competition, however.
For example, activity at steel mills remains weak and many apparel producers continue to struggle with competition from cheap imports. Manufacturers in several regions have expressed concern about labor availability and continue to report difficulties in hiring skilled technical workers, especially in the information technology area. As a result of a shortage of qualified workers, not all of the increase in demand for manufactured goods in the St. Louis district has been met. Additionally, labor costs have become a major concern for most contacts in that district. On a positive note, many districts continue to report healthy productivity gains, with Richmond noting that several manufacturers are experiencing record productivity, in part because of increased capital spending.