CHICAGO (MNI) – The following are comments from members of the
survey panel who contributed to the September Chicago PMI report
released Friday:

1. “We are seeing unannounced and incredible inflation on one
product, multiple parts, that we are purchasing out of Europe. At 400%
increase we thought surely must have been a mistake. This is not related
to $ exchange since we pay in Euros already. Supplier says they cannot
absorb costs anymore.”

2. “Continued export of manufacturing with simultaneous mandates to
reduce global raw material inventories while maintaining high customer
service levels globally is the greatest challenge. Locating new
localized sources for raw goods in new manufacturing locations also
lengthy and expensive. Quality consistency seems to be the biggest
headache for new factories attempting to qualify local suppliers. US
based goods often continue to be used at a higher cost thus impacting
the bottom line but keeping customers coming back.”

3. “Talk of tax increases has many of my suppliers nervous and they
now are reluctant to expand their business with either labor or capital

4. “Business continues strong & the backlog remains good.”

5. “We are finally adding personnel on a regular basis to help meet
the increasing demand we are facing. Our standards are lower in terms of
experience but not quality of the employee.”

6. “We buy gold for our manufacturing process. Pricing is Ugly!!!!”

7. “Concerns with double dip recession due to short term strategies
for raw material and energy pricing (example: oil pricing has dropped
significantly; however, prices at the pump remain elevated). This
approach to pricing appears to be systemic resulting in eroding margins
and lack of capital to fund growth for manufacturers in USA.”

8. “Our production is slammed right now, but our backlog is still
low, basically everything we are getting in we are pushing out the door
as fast as we can complete them.”

** Market News International Chicago Bureau: (708) 784-1849 **