Manufacturing in Oklahoma and surrounding states?
“We are hiring as fast as possible and turning work down.”
“Business is good.”
The comments of some manufacturing representatives in response to the March Manufacturing Survey released by the Federal Reserve Bank of Kansas. It found manufacturing in the Tenth District of the bank “increased moderately, while expectations for future activity remained expansionary.” But rising costs of fuel are also affecting business activity.
“Regional manufacturing activity rose moderately from last month, posting its highest reading since July 2022. Most firms still expect higher demand this year relative to 2025. However, while some firms expected higher profit margins in coming months, a slightly larger share expected lower profit margins due to cost pressures,” said Cortney Cowley, assistant vice president and Oklahoma City Branch executive,
Both durable and nondurable manufacturing activity increased in March. Growth in the durable manufacturing sector was driven primarily by wood product manufacturing, while growth in the nondurable manufacturing sector was driven by paper and plastics and rubber product manufacturing. There were also increases in the volume of shipments and new orders.
This month, contacts were asked special questions about expected changes in profit margins and product demand. Approximately a quarter (24%) of firms reported that they expect their profit margins to remain unchanged over the next 12 months, 1% of firms expect their profit margins to
significantly increase, 31% expect a slight increase, 35% expect a slight decrease, and 9% expect a significant decrease.
Firms were also asked about product demand compared with last
year. Half of firms expect their product demand to be slightly higher in 2026 than in 2025, 10% expect their product demand to be significantly higher, 20% expect no change in product demand, 16% expect their product demand to be slightly lower, and 4% of firms expect product demand to be significantly lower.
The growth was also reflected in the comments of managers who answered the survey. So were increased fuel costs which have affected some of the manufacturing firms.
“Going to see a bump in costs due to increasing fuel costs.”
“We are starting to raise prices now because of higher energy costs.”
“Continued uncertainty in transportation costs, regulatory exposure, and unsteady demand continue to make long-term planning almost impossible. Due to this, as a company, we are more reactionary than typical. This hurts short-term profits and cashflows.”
“Seeing growth in quotes and orders albeit fairly small.”
“Must see a Q2 volume increase or assurance thereof to remain viable.”