After a flat year in 2016, shipments for Walker Manufacturing’s 2017 fiscal year (starting October 1) have strongly rebounded to some of the highest levels in the company history. Shipments are up 36% in the fall quarter, well ahead of forecast. Export sales are also increasing after a significant decrease in 2016.
While it is difficult to pinpoint the factors that influence business cycles, Walker believes pre-election jitters from the US presidential campaign may have caused some hesitation and caution in the domestic and worldwide markets, resulting in slowed sales in 2016. In addition, even though the US dollar continues to be strong in comparison to foreign currencies, there appears to be some positive change in outlook that is re-energizing the export markets where Walker is doing business.
With the increase in shipping, the Walker factory has made two increases in production rates since October, and there may be some additional upward adjustment in the spring. Walker production uses a “level” manufacturing plan with year-round production and full-time jobs for employees. While looking at the optimistic signs for 2017 sales, the factory will exercise caution and use a balanced approach with orders, forecasts and inventory to avoid underproduction or overproduction.
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