With factory output rising, the bullwhip effect will be making its way up the hydraulic manifold supply chain.

U.S. factory output rising at fastest rate in three years

After a string of harsh winter storms slowed economic growth during the first quarter, things are looking up in the manufacturing sector, according to a flash forecast from financial data firm Markit. As this leads manufacturers to ramp up their demand for fluid power components, Daman Products is ready to help distributors manage the bullwhip effect by providing a steady supply of high-quality standard and custom hydraulic manifolds.

Economist: Increase in factory activity driven by domestic demand

Although a decline in the size of inventories caused Markit's Manufacturing Purchasing Managers Index to drop slightly, it remains above 50, which indicates ongoing expansion in the sector. At the same time, the firm's output subindex jumped to 58.2, the highest level since March 2011.

In a press release discussing the firm's findings, Markit chief economist Chris Williamson painted an optimistic picture for the coming months.

"With manufacturing acting as a good bellwether of the rest of the economy, the survey bodes well for further robust economic growth in the second quarter," Williamson said. "This is a domestic-led upturn. Faster growth of new orders is being driven by surging demand from U.S. markets."

The Commerce Department also recently released economic data for March, which indicated that durable goods orders increased 2.6 percent. Officials said demand rose in all of the categories tracked by the department, including machinery, components, fabricated metal products and electrical equipment.

It remains to be seen whether the current upswing in manufacturing activity will continue to gain strength or fizzle as other surges have in recent years. Daman Products' unique Trigger System can help manifold distributors be prepared to respond to any changes in demand.