Qimtek operates a clearing house for contract manufacturers and their customers; their Contract Manufacturing Index (CMI) tracks the purchasing activity of companies that are looking to outsource work. They report a strong start to 2025 with the index up by 52% compared to the 4th quarter of 2024.
The projects are split into 3 groups – machining, fabrication and other – which, in the 1st quarter of 2025, accounted for 55%, 36% and 9% of total work respectively. Within the quarter, Qimtek note a strong start in January but that activity dropped back in March.
The sub-index for machining was +35% higher than in the final quarter of 2024, but there is seasonal element to this as it was still -22% lower than at the start of 2024. Similarly, fabrication activity was +54% higher than in the previous quarter but -28% lower than at the same time last year. The “other” section had a rather different trend, with a fall in the index compared to the end of 2024 but more than doubling the level seen in Q1-2024.
By industry sector, the largest in the 1st quarter of 2025 were industrial machinery (41%), communication equipment (15%), construction (13%), electronics and defence/military (both 9%).
The data for Q1-2025 is based on work for 217 companies and 362 projects.
You can get more details on this report from the Qimtek website at https://www.qimtek.co.uk/blog/qimtek-contract-manufacturing-index-quarter-1-2025.