Login



For PLUS+ subscription assistance, contact customer service.

Not a PLUS+ Subscriber?

Become a PLUS+ Subscriber today and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access
  • 7 Magazine Issues per Year
  • Companion Digital Editions
  • Digital Edition Archives
  • Bonus Email Newsletters

Subscribe Today!

Premium access to exclusive online content, companion digital editions, magazine issues and email newsletters.

Subscribe Now.


Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2009.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $109/year*. Begin yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

For assistance with your PLUS+ subscription, contact customer service.

* Prices higher for subscriptions outside the USA.

PLUS+ Customer Service Support


Customer service for all PLUS+ subscribers is available Mon-Fri, 9am-5pm Eastern time.

Email: [email protected]
Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)
Mail: PO Box 1496, Framingham MA 01701-1496, USA



You have been logged out of PLUS+


For PLUS+ subscription assistance, contact customer service.

Need to access our premium PLUS+ Content?
Upgrade your subscription now.


Our records show that you are currently receiving a free subscription to Supply Chain Management Review magazine, or your subscription has expired. To access our premium content, you need to upgrade your subscription to our PLUS+ status.

To upgrade your subscription account, please contact customer service at:

Email: [email protected] Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)

Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2010.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $129/year*. Start yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

This content is available for PLUS+ subscribers.


Already a PLUS+ subscriber?


To begin or upgrade your subscription, Become a PLUS+ subscriber now.

For assistance with your PLUS+ subscription, contact customer service.

Sorry, but your login to PLUS+ has failed.


Please recheck your login information and resubmit below.



For PLUS+ subscription assistance, contact customer service.

Non-manufacturing output is strong in November, reports ISM

The index ISM uses to measure non-manufacturing growth—known as the NMI–rose 0.4% to 60.7 (a reading above 50 indicates growth), following a 1.3% decline in October (coming off of September’s all-time high of 61.6), and grew for the 106th consecutive month. The November NMI is 1.8% above the 12-month average of 58.8.

By ·
By ·

Non-manufacturing activity in November saw modest growth in November, according to the Non-Manufacturing Report on Business, which was issued by the Institute for Supply Management (ISM) today.

The index ISM uses to measure non-manufacturing growth—known as the NMI–rose 0.4% to 60.7 (a reading above 50 indicates growth), following a 1.3% decline in October (coming off of September’s all-time high of 61.6), and grew for the 106th consecutive month. The November NMI is 1.8% above the 12-month average of 58.8.

ISM reported that 17 non-manufacturing sectors reported growth in November, including: Educational Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; Transportation & Warehousing; Construction; Wholesale Trade; Real Estate, Rental & Leasing; Management of Companies & Support Services; Information; Finance & Insurance; Retail Trade; Other Services; Mining; Accommodation & Food Services; Public Administration; Arts, Entertainment & Recreation; and Utilities. The only industry reporting a decrease in November is Agriculture, Forestry, Fishing & Hunting.

The report’s key metrics, including the NMI, were mixed in November, including:
-business activity/production up 2.7% to 65.2, growing for the 112th month in a row;
-new orders were up 1.0% to 62.5, growing for the 94th consecutive month;
-employment decreased 1.3% to 58.4, growing for the 57th consecutive month;
-supplier deliveries slowed down at a slower rate% at 56.5 (a reading above 50 indicates contraction) and slowing for the 35th straight month;
-prices rose 2.6% to 64.3, growing for the 33rd straight month;
-inventories were up 1.5% at 57.5, heading up for the ninth month in a row; and
-backlog of orders fell 5% increase to 53.5, up for the tenth straight month

Comments from ISM member respondents included in the report were fairly positive, although concerns over tariffs and trade remained intact.

“The business is preparing for the later phases of tariffs by slowing down growth and capital investment until the future becomes clearer,” observed a retail trade respondent. “We are starting to pull months of inventory in before the next round of tariffs hit, so there is a lot of activity on our logistics side.”

An information services respondent said business is booming and labor costs are rising. A commercial construction respondent noted that the sector is strong, but employment is struggling, due to a lack of qualified talent. And a wholesale trade respondent said that it is still experiencing low transportation service levels.

“This NMI reading is very consistent with what our respondents have been telling us all year, in that 2018 was going to be a strong year and is going to finish up very strong,” said Tony Nieves chair of ISM’s Non-Manufacturing Business Survey Committee, in an interview. “We don’t know at which rate it will finish the year, but it will carry over into 2019, as there are not pitfalls on the horizon, other than perhaps the uncertainty surrounding tariffs and other geopolitical situations. The economy is poised to keep going, as long as nothing catastrophic happens.”

Other factors serving as non-manufacturing growth drivers, cited by Nieves, include consumer confidence being at an all-time high and unemployment being at an all-time low, coupled with the tax cuts and deregulation efforts stimulating growth on both the business and consumer sides. 

While things are largely positive, Nieves noted there are also challenges, too, such as issues with employment resources for skilled labor and construction, transportation issues and capacity constraints, as well as capacity utilization being a bit of a struggle at the moment, too. And he also said that capital reinvestment has stalled, due to the tariff uncertainty.

With an inventory buildup intact in November and supplier deliveries slowing (and not as fast) and backlog of orders slowing a bit, Nieves attributed that to increased volumes, as there has been spending efforts to increase inventories and offset volume gains and capacity constraints.

“We are looking at it as there is still a shortage of trucks and drivers, as well as slow railroad service,” he said. Exports are growing (down 3.5% to 57.5 and growing for the last 22 months), but it is just a little slower as the previous month was in anticipation of tariffs and any customs and duties that may be imposed. Overall, though, it has been consistent month-to-month.”


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Supply Chain Management Review Magazine!

Subscribe today. Don't Miss Out!
Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!

Latest Whitepaper
The E-commerce Effect: The Modern Supply Chain Disruptor
In this whitepaper, take a closer look at how this new e-commerce world is affecting different segments of the supply chain.
Download Today!
From the November 2018
The combined forces of a strong economy, e-commerce growth and a tight labor market are making it more important for distribution center (DC) operations to find ways to make their existing infrastructure and people more productive. Software and automation continue to prove to be a vital part of the solution.
Shining a light on the “black box” of transportation
Does Artificial Intelligence (AI) -enabled demand forecasting improve supply chain efficiency?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!


Latest Webcast
Leveraging the Internet of Things (IoT) in Manufacturing
Is Digital Transformation a risk or an opportunity? This webinar will detail Manufacturing industry challenges and how using IoT can address these challenges through optimizing logistics, improving processes and gaining meaningful insights.
Register Today!
EDITORS' PICKS
Global Kuehne + Nagel Indicators Signal Global Supply Chain Resilience
So far this year, international merchandise trade has risen by 10.6%. Emerging markets and North...
A.T. Kearney’s Global Business Policy Council Predictions Released
GBPC’s 10 major predictions, fleshed out in the study, are based on continuous scanning of the...

New Research Indicates Greener Supply Chains Mean More Profit
Transparency is key when selecting new suppliers as 85% of businesses want to achieve a...
New Survey Measures Potential Impact of Tariffs on U.S. Supply Chains
The proportion of total output produced abroad is meanwhile expected to rise very marginally.