Drew Dixon
Sluggishness is hampering the First Coast manufacturing scene, as a University of North Florida survey showed contraction in nearly every sector in June.
UNF’s Jacksonville Economic Monitoring Survey (JEMS) shows only two out of 12 manufacturing sectors expanded last month.
Robert Loh, Interim Dean of the UNF Coggin College of Business, oversees the monthly project and said local manufacturers remain skittish when considering the broader economic picture.
“Local output and new orders continue to decline, and employment is shrinking, painting a picture of subdued business confidence and a wait-and-see approach among firms facing persistent uncertainty,” Loh said in the report’s summary.
Key indicators — such as production output, new orders, new export orders, backlogs of work, finished goods inventory and employment — are all below the manufacturing index of 50, a clear indicator of a tightening manufacturing picture. Only supplier delivery times and average input prices expanded last month.
Output prices and the 12-month business activity outlook were unchanged among Northeast Florida manufacturers.
UNF researchers from the JEMS project reach out to First Coast manufacturing companies each month to see where they stand on production and several other factors. June is the fifth month in a row that saw contraction for multiple sectors.
The on-again-off-again specter of trade tariffs being implemented by President Donald Trump is one of the main reasons that North Florida manufacturers are so gun shy about moving forward with notable increases in production, according to Loh.
“Tariffs are clearly influencing pricing and procurement decisions, contributing to rising input costs and delays in delivery. While the data does not yet indicate a deep downturn, the combination of tariff pressures, soft demand and reduced hiring could erode local economic momentum and increase the risk of recession if conditions don’t improve in the months ahead,” Loh said.
