Manufacturing and Service Growth Means Opportunity for Commercially Focused Dealers
The Institute for Supply Management (ISM) is forecasting continued economic growth for many businesses for 2021, which should be good news for security dealers and integrators that sell to the commercial market.
ISM is a long-standing organization that for decades has issued a well respected “Report on Business” that includes a wide range of information about 18 manufacturing categories and 18 service categories. All 18 manufacturing categories and 16 of the service categories are expected to see revenue growth for 2021, based on a survey of the nation’s purchasing and supply executives.
On average, manufacturing revenues are expected to increase 7.2% and service revenues are expected to increase 5.4% in 2021.
The 18 ISM manufacturing categories ranked in descending order by expected revenue growth are nonmetallic mineral products; fabricated metal products; miscellaneous manufacturing; apparel, leather and allied products; machinery; wood products; computer and electronic products; chemical products; electrical equipment, appliances and components; food, beverage and tobacco products; plastics and rubber products; primary metals; transportation equipment; furniture and related products; paper products; printing and related support activities; textile mills; and petroleum and coal products.
The 16 service categories forecast for growth, in descending order by expected growth, are arts, entertainment and recreation; mining; wholesale trade; professional, scientific and technical services; management of companies and support services; information; transportation and warehousing; educational services; health care and social assistance; retail trade; other services; accommodation and food services; agriculture, forestry, fishing and hunting; finance and insurance; construction; and public administration.
ISM also looks at companies’ capital expenditure plans, and there is good news there, too.
Among manufacturers, capital expenditures are forecast to increase 8.7%, while capital expenditures for service companies are expected to increase 5.7% in 2021.
Eleven of the 18 manufacturing categories expect to increase capital expenditures. In descending order, they are paper products; fabricated metal product; textile mills; electrical equipment, appliances and components; chemical products; transportation equipment; wood products; nonmetallic mineral products; computers and electronic products; machinery and miscellaneous manufacturing.
Among the service categories, 13 are expecting an increase in capital expenditures. In descending order, they are mining; real estate, rental and leasing; management of companies and support services; transportation and warehousing; utilities; accommodation and food services; health care and social assistance; professional, scientific and technical services; wholesale trade; construction; educational services; other services and retail trade.
If businesses are growing and especially if they expect an increase in capital expenditures, they may have more money available for upgrading security systems, adding video or access control, etc. Perhaps dealers that focus on commercial accounts will find the ISM information helpful in their sales prospecting.
Additional information is available at www.ismrob.org.
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Security Equipment Supply is a leading wholesale alarm equipment distributor that has almost 40 years of experience serving security dealers.
We carry a full line of security equipment, including intrusion protection, fire protection, access control, video surveillance, and more. Our knowledgeable salespeople are trained to help dealers select the right equipment to meet their commercial and residential customers’ needs.