The Monthly Manufacturing Numbers Are In – What a 49.1 PMI Means for Small Carriers in the Months Ahead
3 Ways to Use This PMI Data to Your Advantage
1. Get Forward Thinking
National freight might slow, but there are still options — especially around industrial hubs (think green mile). Consider how to reposition equipment closer to where freight is dense even when the national tape goes red.
2. Build Direct Shipper Relationships (or At The Very Least, A Few Good Brokers) — Now
This isn’t the time to be overly reliant on random brokers or spot boards. Shippers are open to building relationships with carriers who:
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Show up and initiate a conversation about business
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Offer transparent pricing
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Communicate clearly
Start with smaller manufacturers in your region. Even 1–2 loads a week locked in directly gives you a starting point.
3. Work Your Margins
A weak PMI means potential freight volume compression. Your profit gets squeezed between rising costs and flat rates due to lowered overall demand for trucks. So:
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Use a profitability tracker
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Know your cost per mile, cost per hour, revenue per mile, revenue per hour, and cost per day
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Refuse loads that don’t meet your breakeven + margin goals
Don’t just chase revenue — protect your margin.
So… What About When PMI Turns Around?
Good question.
History shows that when PMI rises above 50 and stays, freight volumes tick up within 1–2 quarters. That means now is the time to:
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Build operational strength
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Clean up compliance and maintenance
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Lay groundwork with shippers, do not wait……
That way when freight rebounds, you’re not scrambling to get ready — you’re already in motion.
FAQ – Small Carrier Questions About PMI & Freight
Q: If PMI is low, should I stop trying to grow?
A: Not necessarily. If you’re underutilizing capacity, growing strategically (like adding a power-only contract or hiring your first dispatcher) could give you an edge. But be cautious about adding fixed costs unless you have margin room.
Q: I haul flatbed — what’s the outlook if manufacturing stays soft?
A: Construction and energy projects still drive flatbed demand. Don’t rely on just steel coil or long-haul mill freight. Might need to look into other more insulated options.
Q: Will diesel prices fall if manufacturing stays low?
A: Not guaranteed. Global factors like OPEC and weather events move fuel prices. Even if demand dips, supply issues can still cause spikes.
Q: Where can I find PMI data myself?
A: Head to www.ismworld.org each month. Their reports are free and usually drop the first business day of the month.
Final Word — Read the Market, Don’t React to It
The small carrier who studies PMI, monitors market conditions, and plans accordingly will always outperform the one who reacts late.
A 49.1 PMI means freight demand is still tight — but not dead.
You can still win in this market:
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With discipline
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With strategy
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With carrier-shipping relationships
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And with margin-based decision-making
If you’re just watching the rate on the board, you’re limiting yourself. It’s time to start reading the indicators that tell you where the rates is going.
But, 49.1 is very close to 50. So something to keep an eye on.
The post The Monthly Manufacturing Numbers Are In – What a 49.1 PMI Means for Small Carriers in the Months Ahead appeared first on FreightWaves.
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