Data from the most recent Texas Manufacturing Outlook Survey indicates that for the month of May, the state's manufacturing index fell from 5.8 to -13.1. The monthly survey is run by the Dallas Federal Reserve (DFR); a total of 111 Texas-based manufacturing firms responded to the May survey.
This, according to the DFR, is the fifth straight month that state manufacturing firms have trimmed both staff and employee work hours.
Although some feel a possible late-2016 stabilization of oil prices could be a positive, the recent, substantial upticks in
US hot rolled coil (HRC) prices have been hard to pass onto customers. In the absence of being able to pass higher costs onto customers, manufacturers' profit margins have been squeezed.
Others say that lagging activity out of the oil patch continues to be a concern, adding that still-declining rig counts have caused them to make cuts to both payroll and employee benefit contributions.