Earlier this month, the Institute for Supply Management (ISM) updated its manufacturing index to account for developments in September.
The index, which indicates growth when above 50, rose to 56.2 last month, up from 55.7. This beat the median expectation of a group of 84 economists polled by Bloomberg, which projected that index would drop slightly to 55.
Survey data from PricewaterhouseCoopers (PwC) also showed strength in the sector, with 58 percent of manufacturing companies reporting that they plan to add employees in the next year. Only 3 percent said they were planning to reduce the size of their staff, while 39 percent indicated they do not expect any changes in headcount. The majority of manufacturers surveyed also indicated that they plan to increase their operational spending and invest capital in expansion projects.
Fueling growth with advanced oil production technologies
Scott Brown, chief economist at Raymond James & Associates, said the new data from ISM and PwC shows that the U.S. manufacturing sector is "poised for improvement." However, there are several potential obstacles that could disrupt the current trend, including concerns about the price of oil.
Almost 30 percent of the factory operators polled by PwC said they believe that an increase in the cost of energy could inhibit their expansion during the next year. This could have a broad impact on the nation, as the manufacturing sector accounts for about 12 percent of the economy, according to Bloomberg.
For the country to remain on a positive trajectory, companies will need to be able to depend on oil producers to provide a steady supply of energy. Modern technologies such as the hydraulic jet pump can help stakeholders maintain a sense of security on this front.
Jet pumps allow well operators to produce oil efficiently from vertical, horizontal or deviated wells. This solution can even be deployed at sites where issues with the completion of well casing would limit the effectiveness of other equipment. Furthermore, with no downhole moving parts, jet pumps have minimal maintenance needs and can be easily retrieved for optimization without the use of a work-over or wire-line unit.