The latest Contract Manufacturing Index for the third quarter of 2020 (Q3) shows that the subcontract market bounced back strongly in July and August after the Covid-19 shutdown.
The market fell slightly in September, but was still 14% higher than at any point in the previous quarter. The signs are that larger companies have projects in the pipeline but they are taking longer than normal to come to market as many staff continue to work from home.
The CMI for Q3 2020 stood at 123, compared to 49 in the previous quarter, an increase of 151%. The baseline figure of 100 represents the average value of the subcontract manufacturing market between 2014 and 2018.
The Index showed an increase of 43% from the equivalent period in 2019.