0 comments on “ISM-Houston Issues August 2019 Business Report”

ISM-Houston Issues August 2019 Business Report

Web-Report-HeaderSales/New Orders Return to Growth

Manufacturing Concerns Moderate

By Ross S. Harvison, CPSM

(Houston, Texas) – According to Houston supply chain executives, manufacturing activity in Houston expanded in August for the 24rd consecutive month and overall economic activity expanded for the 37th month. The near-term forecast continues to point to overall economic growth. Concerns about potential near term manufacturing weakness have moderated somewhat. The overall rate of economic growth is now anticipated to be flat for the 3-month forecast horizon.

The August Houston Purchasing Managers Index registered 51.6, up very modestly from its July reading of 51.4. The three underlying indicators that have the strongest direct correlation with economic activity (sales/new orders, employment, and lead times) are all pointing to near term expansion. The sales/new orders index returned to indicating expansion for the first time in three months coming in at 51.3. The employment index, while continuing to point to expansion, fell to near neutral at 50.7. The lead times index rose modestly to 53.9. The underlying indicator that has the largest inverse correlation, finished goods inventory, fell further below neutral to 48.8.

The three-month forecast for the Houston PMI registered above neutral at 50.7, up 2.0 points from its July reading of 48.7. Strengthening of the sales/new orders, lead times, and prices paid indices were the primary drivers for this forecast HPMI improvement. These indices have a strong direct correlation with economic activity at the three-month forecast horizon.

On an industry specific basis healthcare, transportation and utilities, EPC firms, and non-durable goods manufacturing reported expansion, while non-durable goods manufacturing reported continued contraction. From a three-month forecast standpoint Transportation and Utilities and Health Care are expected to continue expansion.

Click here to see the full report.

0 comments on “Join Us at the ISM-Houston Supply Leader Summit”

Join Us at the ISM-Houston Supply Leader Summit

yNRsHFIxSeSS0nW9l78B_ISM Houston Annual Supply Chain Leader Summit

If you are a senior supply chain or procurement leader, we would like to invite you and your senior management team to attend the 4th Annual ISM-Houston Supply Chain Leader Summit in Houston, Texas on October 10th, 2018. Learn tools and techniques that will further unlock your own leadership capabilities and unleash any idle potential within your staff!

Click here to find out more!

0 comments on “Procurement Maturity Assessments”

Procurement Maturity Assessments

We have proven process maturity model based methods and benchmarking techniques to help you understand where you are compared to your peers and the procurement performance leaders. We’ll work with you to create a transformation plan based on this assessment with a target to implement known, highly effective, procurement practices while meeting your total cost of ownership targets. We’ll also help you execute this plan, ensuring that you deliver both near term quick hits and longer term differential improvement.


0 comments on “Procurement Process Benchmarking”

Procurement Process Benchmarking

Procurement Transformation isn’t easy. If you are like most procurement leaders, you’ve already started a strategic sourcing effort to get quick savings, but you’re finding it hard to figure out what to do next. Do I improve my IT systems to gain efficiency and reduce errors? What if I focus on cleaning up my master data to better understand and control my spend? Should I modify my processes to align them with those I know to be highly effective? Do I focus on changing my organization and improving my staff capability? By now, you’ve probably concluded that you will need to do all of this and more, but you’re struggling to prioritize your efforts.


0 comments on “Procurement Transformation Value”

Procurement Transformation Value

A procurement transformation effort can reduce your costs significantly. For a typical implementation, you will see annual cost savings of 4 to 9% on your services and indirect materials spend. You will also capture fixed cost savings of 20 to 30%. With normal program execution costs equal to 1 to 2% of one year of spend, depending on your organizations size and current capabilities, most procurement organizations will break even during the third year of program execution.


0 comments on “Ross Harvison Speaks at SHEN Conference”

Ross Harvison Speaks at SHEN Conference

Ross Harvison, Intuitivum Group Managing Partner and President of ISM-Houston, participated in a panel discussion on “Creating an Open Environment for Change” at the 15th Annual Shell Hispanic Employee Network (SHEN) Conference held recently in Houston. Other panelists included Michael Beckwith, Managing Counsel for Global Litigation at Shell, and Manuel Prieto, Associate Principal at McKinsey & Company.

You can find Ross’ prepared responses to questions by clicking here.