By: Jason Gardner, Senior Vice President, Market President at Valley National Bank
U.S. manufacturing activity has expanded for the eleventh straight month, with Central Alabama experiencing similar momentum.
The S&P Global U.S. Manufacturing Purchasing Managers’ Index (PMI) reached 53.9 in June 2026, signaling continued economic expansion. Alabama business leaders are also seeing similar strength – the third quarter 2026 Alabama Business Confidence Index reported a manufacturing index of 60.5 categorized as forecasting growth with strong confidence.
While manufacturers welcome stronger demand, CFOs and other C-suite executives must determine how to support growth without overcommitting capital in a market that’s sensitive to external pressures.
Here are four ways finance leaders can capitalize on this growth opportunity while managing unnecessary risk.
Tips for cautious growth
- Understand the data: Take time to research the indicators shaping your industry. The S&P Global U.S. Manufacturing PMI can help finance leaders anticipate changes in demand and potential working capital needs. Industrial production, capacity utilization and other sector-specific data can also provide valuable insight into where the market may be headed.
- Review your receivables strategy: Efficient receivables solutions such as lockbox services, automation and accounts receivable financing can help your company collect payments faster and improve cash flow. Strengthening these processes before liquidity becomes an issue can also reduce your reliance on customer payment timing as demand increases.
- Evaluate your inventory needs: Review inventory levels and costs to ensure they reflect the current demand and market conditions. If material, labor or transportation costs have increased since previous production cycles, your company may need additional capital to maintain inventory. Identifying that need early gives you more time to secure financing instead of reacting to an unexpected cash flow gap.
- Leverage financial partnerships: A trusted banking partner who understands your company and industry can help you prepare for growth. For example, a working capital line of credit can bridge the gap between when your company incurs expenses and when it receives customer payments, providing the liquidity needed to fulfill orders and maintain production. A banker’s value can also extend beyond lending by helping you evaluate risks and identify opportunities.
Safeguard your growth
The manufacturing sector’s recent momentum presents an exciting opportunity, but companies must support that growth with disciplined financial planning. Sustainable growth depends on having sufficient liquidity to meet rising demand without placing unnecessary pressure on the business.
There’s a saying that it’s easier to secure financing when you don’t need it, and there is truth to that statement. It’s better to plan for growth and have a financing vehicle in place, such as a working capital line of credit or an equipment guidance line of credit. This gives you the flexibility to act faster when a short-term capital requirement is needed. The right banking partner can help strengthen your financial plan and identify challenges before they affect operations.
Our team is ready to help your company prepare for its next stage of growth. Visit your local Valley Bank branch or our website at www.valley.com today to start planning.
Jason Gardner is Senior Vice President, Market President at Valley National Bank and has been in the industry for over 20 years.
The information in this article is for informational purposes only and is not intended as specific advice for any individual or business. Any views, thoughts and opinions expressed herein are solely that of the writer and do not necessarily reflect the views and opinions of Valley National Bank.
Valley National Bank does not provide legal, tax or accounting advice. Please consult your legal, tax, and/or accounting advisors before making any financial decisions.
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