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Texas manufacturers report growth despite supply chain disruptions

 Federal Reserve Bank of Dallas
Federal Reserve Bank of Dallas

The Texas manufacturing sector continued picking up speed this month compared to October, according to the manufacturing survey the Federal Reserve Bank of Dallas released Monday. Its monthly poll of company executives found production, new orders and shipments all increased in November from levels that have already been well-above average over the past few months.

“And this is despite widespread supply chain disruptions and a lot of difficulty finding workers,” said Dallas Fed senior business economist Emily Kerr. “So far they’ve been able to continue to power through and have been in expansionary and recovery territory for quite a while.”

Nearly 93 % of the survey respondents, who answered special questions related to the pandemic, reported supply chain disruptions or delays. The survey also showed growing pessimism among manufacturers about when the shortages of raw materials will end.

“It’s almost split between about two-thirds saying they expect more than six months before their supply chains return to normal; and then just over a third saying within six months,” Kerr said.

In contrast, Kerr said expectations regarding future manufacturing activity were generally more positive this month.

“I think right now it’s sort of a mixed bag with some manufacturers still working to recover where they were pre-pandemic, while others are continuing to grow beyond that,” Kerr said.

Copyright 2021 KERA. To see more, visit KERA.

Joseph Leahy anchors morning newscasts for NPR's statewide public radio collaborative, The Texas Newsroom. He began his career in broadcast journalism as a reporter for St. Louis Public Radio in 2011. The following year, he helped launch Delaware's first NPR station, WDDE, as an afternoon newscaster and host. Leahy returned to St. Louis in 2013 to anchor local newscasts during All Things Considered and produce news on local and regional issues. In 2016, he took on a similar role as the local Morning Edition newscaster at KUT in Austin, before moving over to the Texas Newsroom.