Tag: manufacturing

What Does Obama’s State of the Union Mean for U.S. Manufacturing?

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Last week President Obama gave the annual State of the Union address. Many topics were talked about including everything from war to income inequality. A main theme of the speech centered on the revitalized success of the industrial sector and the overall economic recovery. The President pointed out that new manufacturing jobs are being added for the first time in decades. This is a good sign for not only the manufacturing industry, but also the country as a whole.

While the number of factory jobs began declining in the 1990s due to production moving overseas, that trend is beginning to reverse. In fact manufacturing is one of the main industries that have seen growth since the Great Recession, with more than half a million jobs added in the last four years. Some analysts have projected further growth this year due to more companies bringing back jobs to this country. Moving manufacturing overseas doesn’t make quite as much sense as it did a decade ago. Labor costs in China are rising while the US is seeing declining energy costs. These forces combined means companies can afford to ramp up production without outsourcing most of the work.

At Marshall Fabrication Machinery Inc., we are proud to offer manufacturing jobs right here in the US. The recent rise in manufacturing jobs is good for the entire industry, and we look forward to seeing more jobs come back to this country each year. For more information about the industrial sector and how it helps America’s economy, keep checking back with us!

Source: http://www.latimes.com/business/money/la-fi-mo-obama-sotu-manufacturing-20140128,0,5303871.story#axzz2rv5rS7yT

Increased Investment in U.S. Manufacturing

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U.S. manufacturing has been on the upswing for a little while now, and there are finally enough signs of positive trends that industry experts are hopeful for the industry’s long-term prospects. Investment in American factories has grown, spurring corporate investment and a turnaround in hiring.

American manufacturing companies are expected to increase their spending on equipment by 7 percent in 2014, up to a total of about $211 billion according to this article published online by The Wall Street Journal. The article cites a few cases of companies investing hundreds of millions of dollars into factory facilities in Alabama, Louisiana and North Carolina. Some of this investment is even coming from foreign companies, bringing money into the country instead of the other way around.

Employment levels within manufacturing industries are still at a level below what U.S. manufacturers enjoyed in 2007, before the country’s recession. However, since reaching its lowest point in 2010, total jobs in American manufacturing increased by 5 percent to about 12 million jobs. As investment in U.S. manufacturing facilities improves, we’ll need even more workers to fill the positions at those companies as well.

The United States currently endures a pretty massive trade deficit between foreign imports and domestic exports, indicating that it’s spending more than it’s producing. However, that gap also tightened up by $6 billion over the past year. That’s a pretty small piece of the total pie, but it is an encouraging sign that American manufacturing is exporting more than in recent years.

There are still a few issues confronting our country’s manufacturing goals that we may need to address before returning to prosperity. Many areas of our country are experiencing a shortage of skilled workers, and our businesses deal with higher taxes than in other countries. Still, the comparatively flat wages earned by our workers, as well as reduced energy costs within our country, has been encouraging far more investment in our economy.

Marshall Fabrication Machinery is on hand whenever you need metalworking machinery to handle your manufacturing jobs. From plate rolls to angle rolls and more, we provide the top quality in factory and machining equipment that your business deserves.

Gain in U.S. Consumer Confidence Lifts Spending Outlook: Economy

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American consumers turned more confident in December as hiring picked up, brightening the outlook for spending heading into 2014.

The Conference Board said its sentimentindex climbed to 78.1 from 72 in November, exceeding the median forecast of economists surveyed by Bloomberg and the strongest year-end reading since 2007. Other reports showed home prices climbed at the fastest pace in more than seven years and manufacturing was in a sustained expansion. The biggest employment gain in eight years, the rebound in housing and record stock values are boosting household wealth, which will help support spending in the new year. Companies from Ford Motor Co. (F)to Apple Inc. (AAPL) are pledging to expand operations in the U.S. as demand improves, a sign the world’s biggest economy will strengthen in 2014.

“We’re ending 2013 with good momentum,” said Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut, and the second-best forecaster of consumer confidence over the past two years, according to data compiled by Bloomberg. “We’ve seen progress in the labor market. The rise in home values along with the run-up in equity prices is a big element of why people are feeling better.”

U.S. stocks rose, with the Standard & Poor’s 500 Index poised for its biggest annual advance since 1997, as data showed an improving economy. The S&P 500 climbed 0.3 percent to 1,846.72 at 12:13 p.m. in New York.

Home Values

Another report today showed home prices in 20 cities rose in October from a year ago by the most since February 2006, signaling the real-estate rebound will keep bolstering household wealth. The S&P/Case-Shiller index of property prices climbed 13.6 percent from October 2012 after a 13.3 percent increase in the year ended in September. A dwindling inventory of foreclosed properties has helped restrict the supply of homes for sale, pushing up prices even as higher mortgage rate cool demand. The real-estate market will probably get its next boost from gains in employment.

“There’s certainly room for home prices to continue rising in the coming year,” said Dana Saporta, an economist at Credit Suisse in New York, who projected a 13.7 percent advance in prices in the year ended in October. “As home prices continue to rise, more and more homeowners who are underwater on their mortgages will see their financial situations improving. Just getting out of that underwater position should be a big help to the economy.”

Survey results

The median projection in a Bloomberg survey of 59 economists called for the consumer confidence index to climb to 76. The Conference Board, a New York-based research group, today also revised up the November reading from a previously reported 70.4. The index averaged 53.7 in the recession that ended in June 2009.

The group’s present conditions barometer increased to 76.2, the highest reading since April 2008. Consumers’ assessments of current labor-market conditions also improved. The share of respondents who said positions were hard to get dropped this month to the lowest level since September 2008. Payrolls expanded by 203,000 workers in November after a 200,000 gain in October, and the jobless rate fell to a five-year low of 7 percent, according to Labor Department data. Employment is forecast to increase about 190,000 this month, which would make 2013 the best year since 2005. The improvement in the economy and labor market helps explain why the Federal Reserve on Dec. 18 decided it will trim monthly bond purchases to $75 billion from $85 billion starting in January.

Expectations Brighten

The Conference Board’s gauge of consumer expectations for the next six months jumped to 79.4, the highest since September, from 71.1 a month earlier. The proportion of Americans who said jobs would become more plentiful in the next six months rose to a four-month high. “Despite the many challenges throughout 2013, consumers are in better spirits today than when the year began,” Lynn Franco, director of economic indicators at the Conference Board, said in a statement. The gain tracked advances in other confidence measures. The Bloomberg Consumer Comfort (COMFCOMF) Index jumped to a four-month high for the week ended Dec. 22. The Thomson Reuters/University of Michigan index climbed in December to a five-month high. Automakers are among companies benefiting from growing confidence. Auto sales advanced to a 16.3 million annualized rate in November, the highest since May 2007, according to data from Ward’s Automotive Group.

Adding Jobs

Dearborn, Michigan-based Ford said this month it plans to add 5,000 jobs in the U.S. as it introduces 16 new vehicles in 2014.

“We also expect manufacturing, engineering and spending related costs in North America to increase next year due to the 2014 launches as well as for products and capacity actions that will be launched in later periods,” Chief Financial Officer Robert L. Shanks said in a Dec. 18 guidance call. He said the company “is, has been, and continues to be in growth mode.”

Cupertino, California-based Apple started taking orders this month for the new Mac Pro personal computer, which is being built in Texas with components made domestically as part of Chief Executive Officer Tim Cook’s $100 million Made-in-the-USA push. Improving sales are prompting factories to boost output, giving the U.S. economy another boost. Business activity expanded in December, capping the strongest three months in more than two years, another report showed today.

Sustained Growth

While the MNI Chicago Report business barometer declined to 59.1 from 63 in November, numbers greater than 50 signal growth. The index averaged 62.7 over the past three months, the highest since the period ended May 2011. Manufacturing, which makes up about 12 percent of the economy, has been expanding as demand for automobiles, construction materials and appliances keep factory assembly lines humming. A pickup in business investment and economic improvement overseas would help sustain gains and support growth into the new year.

“Some of the missing pieces for a stronger economic recovery are falling into place,” said Ryan Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania. “The consumer’s still going to have to do some of the heavy lifting, particularly early on in the year until the housing cycle kicks in and business investment ramps up.”

To contact the reporter on this story: Shobhana Chandra in Washington atschandra1@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

Manufacturing to give economy a fresh push into 2014

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WASHINGTON (MarketWatch) — Manufacturers likely ended 2013 by posting a seventh month of growth, which probably will help fuel a pickup in the broad economy and hiring in the new year, economists say.

This week’s data may also signal continued gains for housing and a rebound in confidence among consumers, the backbone of the U.S. economy. A series of good reports, following recent strong data on business spending and housing, bode well for 2014, economists say.

“As we get ready to close the books on 2013, we’re not only hopeful but reasonably confident (i.e., as confident as one can be in the often humbling world of economic forecasting) that, yes, 2014 will be the year when the U.S. economy finally shifts into a higher gear,” Richard Moody, chief economist at Regions Financial, wrote in a research note.

The data highlight comes Thursday, when the Institute for Supply Management will report on manufacturing in December. Economists polled by Dow Jones Newswires expect the data to show a solid expansion at 56.7%, but slightly pulled back from the 2.5-year high of 57.3% in November . Results above 50% signal growth, and the higher the reading, the faster the growth.

“That would still leave the index at a level normally consistent with strong growth in manufacturing output and employment,” Capital Economics analysts wrote in a research note.

Also Thursday, Markit will release its gauge of U.S. manufacturing. Both reports come two days after a report about Chicago-area business activity. A series of good manufacturing reports could mean that gross domestic product this quarter is stronger than economists are currently forecasting.

Housing on the rebound

The week also brings reports on housing sales, prices and construction.

On Monday, the National Association of Realtors will report on pending sales of homes for November. Economists expect the gauge to rise 1%, after declining 0.6% in October , according to a poll by Dow Jones Newswires. An increase in pending sales — these typically close within two months and can be used to estimate upcoming activity — would follow five months of slumps, when rising mortgage rates cut buying plans. But buyers now are becoming accustomed to higher mortgage rates and pricier properties, economists say.

On Tuesday, S&P/Case-Shiller will report on home prices, and economists expect that annual growth remained speedy, reaching 13.8% in October, up from 13.3% in September , according to Dow Jones Newswires. Low inventory and pent-up demand have been supporting escalating home prices. But eventually rising prices will slow down as more sellers become willing and able to place their homes on the market, increasing inventory.

On Thursday, the government will report on construction spending, and economists polled by MarketWatch expect monthly growth of 0.9% in November, led by new building for single-family homes, compared with 0.8% in October. A stronger housing market would reinforce broad economic growth, as owners and consumers feel more confident about spending. Labor-intensive construction of new homes also adds to growth.

“We expect further employment gains to improve household formation, a key determinant of housing demand,” UBS analysts wrote in a research note. “Combined with the lagged effects of quantitative easing on the willingness of banks to lend, these factors should allow for additional needed investment in housing, helping create the positive feedback loop that is key to a self-sustaining economic recovery.”

Consumers perking up

After weathering a government shutdown and partisan bickering over the federal budget, confidence among consumers is expected to rebound. Analysts track consumer confidence to get a feel for spending and clues about expectations for the labor market, among other topics. On Tuesday, the Conference Board will report its consumer-confidence index, and economists polled by MarketWatch expect the gauge to rise to 75 in December from 70.4 in November . Although holiday retail sales have been somewhat disappointing , overall consumer-spending growth picked up in November, according to the Commerce Department.

By Ruth Mantell, MarketWatch

Where does the 3D Printer stand in the future of Metal Fabrication?

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Lately, there has been a lot of chatter surrounding the 3D printer and its capabilities as a manufacturing machine.  For people in the metalworking industry, innovative technology continues to push the industry and allow for faster production.  Just look at our 4 plate rolling machine. We’ve tried to transform the way companies bend metal, including the elimination of gear transmission, gibs & ways, bushings, clutches and synchronization devices. 3D printing machines are trying to do the same thing.  They want to transform and create new innovative ways to increase production and profits.

 

For some people, they worry about the future and how the 3D printer might change the manufacturing community.  For now, 3D printers strictly work in plastics and haven’t moved onto metal or mixed use materials. There are different opinions on the subject. Could the 3D printer put metal fabricators on the backburner, or will it provide new supply options? Metal Miner, a sourcing and trading intelligence for global metal markets had this to say in an article written by Stuart Burns earlier this month. “Any technology that creates new supply options for metal buyers has got to be a good thing in our books.”

 

For now, the future of 3D printing still seems unclear.  There are distinct advantages and disadvantages to every new technology.  The companies that evolve and push the envelope of creativity and efficiency generally win in the battle for longevity.

C Marshall Fabrication Machinery, Inc. has over 30 years’ experience in the metal fabrication industry. Over that time, we’ve seen many different innovations come and go. The 3D printer certainly is another exciting possibility, but appears to be years away from coming to fruition for the metal fabrication industry. As always, finding you the right machine to remain competitive and profitable is our goal, no matter what type of technology exists.

Manufacturing in U.S. Grew More Than Forecast in January

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Manufacturing in the U.S. expanded more than forecast in January, reaching a nine-month high and showing the industry is starting to improve.

The Institute for Supply Management’s manufacturing index climbed to 53.1 last month from December’s 50.2, the Tempe, Arizona-based group’s report showed today. Readings above 50 signal expansion. The figure exceeded the highest estimate in a Bloomberg survey of 86 economists. The median forecast was 50.7.

Stocks extended gains after the report showed gains in orders, production and factory employment after a fourth-quarter acceleration in consumer purchases and a rebound in business spending. The housing recovery and stabilization in overseas markets indicate factories may keep adding to growth in the world’s largest economy this year.

“Manufacturing is on the mend,” said Brian Jones, senior U.S. economist at Societe Generale in New York, who projected a reading of 52. “Things are getting better as we begin the year.”

The Standard & Poor’s 500 Index climbed 0.8 percent to 1,509.7 at 10:47 a.m. in New York.

Another report this morning showed hiring increased in January after accelerating more than previously estimated at the end of 2012, evidence the U.S. labor market was making progress even as lawmakers quarreled over the federal budget.

Payrolls rose 157,000 following a revised 196,000 advance in the prior month and a 247,000 surge in November, Labor Department figures showed today in Washington. The revisions added a total of 127,000 jobs to the employment count in November and December. The jobless rate increased to 7.9 percent from 7.8 percent.

Economists’ Estimates

Estimates for the January ISM gauge in the Bloomberg survey ranged from 49.2 to 52.5.

“While we’re off to a great start” to the year, “we just have to see how things materialize,” Bradley Holcomb, chairman of the ISM factory survey, said on a conference call with reporters. “We’re not out of the woods yet.”

Today’s report showed the ISM’s production index increased to 53.6 from 52.6. The new orders measure rose to 53.3, the highest since May, from 49.7.

The employment gauge increased to seven-month high of 54 from 51.9 in the prior month.

The measure of orders waiting to be filled fell to 47.5 from 48.5. The inventory index climbed to 51 from 43. A figure higher than 50 means manufacturers are building stockpiles. A gauge of customer stockpiles rose to 48.5 from 47.

Prices Paid

The index of prices paid increased to 56.5 from 55.5.

Manufacturing, which accounts for about 12 percent of the U.S. economy, was at the forefront in the early stages of the recovery that began in June 2009.

Figures yesterday showed the MNI Chicago Report’s business barometer rose to 55.6 in January, the highest since April, after 50 in December, signaling business activity picked up.

Elsewhere, U.K. manufacturing expanded in January for a second month. A gauge of factory activity eased to 50.8 from a revised 51.2 in December, Markit and the Chartered Institute of Purchasing and Supply said in London today.

In the euro-area, manufacturing continued to shrink. Markit’s gauge rose to 47.9 last month from 46.1 in December.

Chinese Manufacturing

Chinese manufacturing expanded in January, validating the nation’s reluctance to add to policy stimulus amid increasing inflation concern.

The Purchasing Managers’ Index was 50.4 in January compared with 50.6 in December, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing as they more than tripled the number of companies surveyed. A separate gauge from HSBC Holdings Plc and Markit Economics covering fewer businesses rose to a two-year high of 52.3 from 51.5.

Earlier this week, a Commerce Department report showed business investment in equipment and software climbed at a 12.4 percent annual rate in the fourth quarter, the best performance in more than a year, after a drop the prior quarter.

Caterpillar Inc. (CAT), the world’s largest maker of construction and mining equipment, is among manufacturers expecting an improving outlook.

‘Increasingly Optimistic’

“In the United States, we’re becoming increasingly optimistic,” Michael DeWalt, a spokesman for Peoria, Illinois- based Caterpillar, said on a Jan 28 conference call with analysts. “We expect U.S. housing industry to help the economy in 2013.”

An improving housing market is also helping manufacturers such as DuPont Co. (DD), the biggest U.S. chemical maker by market value. Rising demand for plastics used in autos helped the Wilmington, Delaware-based company to report fourth-quarter earnings that exceeded analysts’ estimates. DuPont also said sales in 2013 will climb to $36 billion from $34.8 billion.

“The U.S. is experiencing a weak recovery with bright spots and pent-up demand for housing and autos,” Chief Executive Officer Ellen Kullman said on a Jan. 22 earnings call.

Consumer purchases grew at a 2.2 percent pace in the fourth quarter, up from 1.6 percent in the previous three months, as Americans bought more durable goods including automobiles. A plunge in defense outlays and slower stockpiling led the economy to contract at a 0.1 percent annual pace in the final three months of 2012.

Automobile purchases also may support factory production this year. November-December was the best back-to-back showing for car- and light-truck sales since early 2008, according to Ward’s Automotive Group.

To contact the reporter on this story: Shobhana Chandra in Washington atschandra1@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

Post-Fabtech 2012 – Las Vegas, NV

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FABTECH 2012 Confirms:  Manufacturing is the Comeback Player of the Year
Record Turnout and Brisk Sales Show that Manufacturing in the U.S. has a Bright Future 

The Fabtech trade show, which bills itself as North America’s largest metal forming, fabricating, welding and laser event, is now behind us. 25,903 attendees walked the more than 450,000 net square feet of floor space at the Las Vegas Convention Center. Record first day attendance and solid sales throughout proves manufacturing is not just surviving, but fit and healthy in the US.

FABTECH show co-Manager, John Catalano commented:

“We’ve received great feedback from attendees and exhibitors. Attendees were impressed with the size and scope of the show and the vast array of new products and technologies on display. Exhibitors were enthusiastic and report that sales activity was brisk and leads were plentiful.”

This year we had set up a newly designed booth showcasing a MH314C 4-roll plate roll (10’ x 9/16”). The machine attracted a lot of interest and not just because it was beautifully painted with an American flag on its front but because of what it has “inside”.

The MH314C is the ultimate evolution in the plate bending field with two dragging rolls with hydraulic pinching allowing a steady and precise material dragging. This plate bending machine is the easiest, most versatile, quickest and precise the market can offer.

The machine was already sold prior to arriving to the booth but because of being able to demonstrate it and the CNC Touch Command Control EVO that it was equipped with, we sold several other machines, both MH314C models and other larger models.

We generated more quality leads in Las Vegas than in the last year’s Fabtech Show in Chicago show where the quantity of leads ended up surpassing the quality. This year in Las Vegas we did not have many “tire-kickers” visit our booth but customers that were seriously looking to purchase machines. Discussions were lively and productive.

Our overall impression of the show was that there was a genuine belief in the manufacturing business and continued growth in 2013. The optimism could be felt in all conversations.

Now, together with all our fellow-exhibitors we are facing a busy time of following up on the generated leads as well as already looking into the next years Fabtech Show in Chicago. The work never ends!

Cary Marshall next to a MH314C – 10′ x 9/16″ 4-roll plate roll

As the Holiday Season is approaching I wish my customers, vendors, dealers and all the people active in the metal fabrication world a Very Happy Holidays.

Cary Marshall
President

Click HERE for additional pictures from the show.

Manufacturing in Philadelphia Area Grows More Than Forecast

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Manufacturing in the Philadelphia region expanded in October for the first time in six months, a sign the industry may be starting to stabilize.

The Federal Reserve Bank of Philadelphia’s general economic index rose to 5.7 from minus 1.9 in September, a report today showed. A reading of zero is the dividing line between expansion and contraction. The median forecast of 61 economists surveyed by Bloomberg was for an increase to 1.

he report, contrasting with data showing New York-area factories shrank for the third straight month, indicates that a pillar of the recovery is starting to regain its footing. Gains in confidence and household wealth mean consumer spendingmay help cushion manufacturing at a time when business investment and exports are hurt by slowing global growth and uncertainty about U.S. tax changes.

“Manufacturing has troughed in terms of the declines in activity,” Russell Price, senior economist at Ameriprise Financial Inc. in Detroit, said before the report. “As the recession in Europe becomes less severe, it will take the pressure off exports. There is some demand” in the U.S.

The Philadelphia Fed’s report covers eastern Pennsylvania, southern New Jersey and Delaware. Estimates in the Bloomberg survey ranged from minus 2.7 to 5.8.

Jobless Claims

Other reports today showed more Americans than forecast filed applications for unemployment benefits last week,consumer confidence rose to a six-month high and the index of leading indicators climbed more than forecast in September.

Jobless claims increased by 46,000 to 388,000 in the week ended Oct. 13, reflecting an unwinding of adjustments for seasonal swings at the start of a quarter, from a revised 342,000 the prior period that was the lowest since February 2008, according to Labor Department data.

The Bloomberg Consumer Comfort Index rose to minus 34.8 in the week ended Oct. 14, the highest level since April, from minus 38.5 the previous week. The monthly expectationsgauge improved to minus 7 in October, the best reading since May.

The Conference Board’s gauge of the outlook for the next three to six months increased 0.6 percent last month after a revised 0.4 percent drop in August that was bigger than initially reported, the New York-based group said. Economists projected the gauge would climb 0.2 percent, according to the median estimate in a Bloomberg survey.

Component Breakdown

The Philadelphia Fed’s overall index isn’t composed of the individual measures, one reason some economists consider it a gauge of sentiment among manufacturers. Manufacturing makes up about 12 percent of the U.S. economy.

The breakdown of today’s Philadelphia Fed data was less encouraging than the headline reading. The employment index decreased to minus 10.7, the lowest reading since September 2009, from minus 7.3. The new orders measure dropped to minus 0.6, the fifth contraction in the past six months, from a reading of 1 in September.

The shipments gauge climbed to minus 0.2 from minus 21.2. Its inventory index rose to 2.1 from minus 21.7.

The index of prices paid rose to 19 from 8, while a gauge of prices received increased to 5.4 from minus 0.2.

Factory managers in the region also become less optimistic about the future. The gauge of the outlook for six months from now dropped to 21.6 this month from 41.2 in September.

Figures from the New York Fed on Oct. 15 showed the so- called Empire State index rose to minus 6.2 this month from September’s minus 10.4 reading.

Less Optimistic

Economists monitor the New York and Philadelphia Fed factory reports for clues about the Institute for Supply Management national figures on manufacturing. The ISM report is due on Nov. 1.

The automobile industry remains a source of growth. Cars and light trucks sold at a 14.9 million annual pace in September, the most since March 2008, according to data from Ward’s Automotive Group. Chrysler Group LLC and General Motors Co. (GM) reported gains.

Businesses restrained by weakening overseas growth include Alcoa Inc. (AA), the largest U.S. aluminum producer. The New York- based company cut its forecast for global consumption of the metal on slowing Chinese demand.

“We do see a slight slowdown in some regions in end- markets, and the main driver for this isChina,” Chairman and Chief Executive Officer Klaus Kleinfeld said on a conference call with analysts this month.

Manufacturing also is stabilizing at the national level, a report showed this week. Industrial production, or output at factories, mines and utilities, rose 0.4 percent in September after a 1.4 percent drop in August that was the biggest since March 2009, according to Fed data issued Oct. 16.

To contact the reporter on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

Manufacturing In Northeastern US Grew In March.

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Manufacturing In Northeastern US Grew In March.

The AP (3/16, Crutsinger) reports, “Manufacturing in the northeastern United States expanded this month at its best pace in nearly a year. The growth confirms other data showing the US economy is strengthening.”

Bloomberg News (3/16, Homan) reports, “Manufacturing in the Philadelphia region expanded in March at the fastest pace in almost a year as factory employment picked up. The Federal Reserve Bank of Philadelphia’s general economic index increased to 12.5 this month, in line with projections, from 10.2 in February.”

The Philadelphia Business Journal (3/16, Kostelni, Subscription Publication) reports, “The Philadelphia Federal Reserve’s monthly Business Outlook Survey indicated that general activity, new orders, shipments, and employment all remained positive.”

Bloomberg News (3/16, Homan) reports, “Manufacturing in the New York region expanded in March at the fastest pace since June 2010, indicating factories are still driving the expansion.”

IndustryWeek (3/16, Minter) reports, “The general business conditions index was up slightly from 19.53 in February to 20.21, the fourth consecutive positive reading. New orders and shipments also were both positive, the bank reported, but slightly lower than in February. The prices paid index rose 25 points to 50.6, the highest level since summer 2011.”

The Wall Street Journal (3/16, Madigan), Reuters (3/16, Schnurr), MarketWatch (3/16, Robb), the Central New York Business Journal (3/16, Seltzer) and other media sources also cover the story.

From SME Daily Executive Briefing 3/16/2012

Heavy Metal Is Back: The Best Cities For Manufacturing

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For a generation American manufacturing has been widely seen as a “declining sport.” Yet its demise has been largely overplayed. Despite the many jobs this sector has lost in the past generation, manufacturing remains remarkably resilient, with a global market share similar to that of the 1970s.

More recently, the U.S. industrial base has been on a powerful upswing, with employment climbing steadily since 2009. Boosted by productivity gains and higher costs in competitors, including China, U.S. manufacturing exports have grown at their fastest rate since the late 1980s. In 2011 American manufacturing continued to expand, while Germany, Japan and Brazil all weakened in this vital sector.

To determine the best cities for manufacturing my colleague Mark Schill at Praxis Strategy Group measured the 51 largest regions in the country in terms of how they expanded their “heavy metal” sector — think automobiles, farm and energy equipment, aircraft, metal work and machine shops. We averaged absolute growth rate and momentum in 148 heavy metal manufacturing industries over ten-, five-, two-, and one-year time frames.

Our top ranked area, Houston, is one of only four regions that enjoyed net job growth in manufacturing in the past 10 years. This year its heavy manufacturing sector expanded by almost 5%. Houston’s industrial growth is no fluke; over the past year its overall job growth has been about the best among  all the nation’s major metros.

Houston’s industrial success owes much to the city’s massive port and booming energy sector, says Bill Gilmer, senior economist at the Federal Reserve office of Dallas. “Houston is about energy — it’s about fabricated metals and machinery,” he says. “It’s oil service supply and petrochemicals. It’s all paced by a high price of oil and new technology that makes it more accessible.”

This shift towards domestic energy augurs well for a huge and economically beneficial  shift in America’s  longer term economic prospects, he points out. Cheap natural gas, for example, makes petrochemical production in America more competitive than anyone could have imagined a decade ago. Linkages with Mexico in terms of energy as well as autos has made Texas — which is also home to No. 4 ranked San Antonio and No. 15 ranked Dallas — the nation’s primary export super-power, with current shipment 15% to 20% above pre-crisis levels.

The energy and industry connection also can be seen in No. 10 Oklahoma City, where heavy industry has been booming through much of the recession due to its strong fossil fuel industry. This synergy between energy and manufacturing could also spread to other regions, including many not associated with large fossil fuel deposits  New finds in the Utica shale in Ohio, for example, could be worth as much as  $500 billion; one energy executive called it “the biggest thing to hit Ohio since the plow.”

These gas finds may help ignite the heavy metal revival. As coal-fired plants become more expensive to operate due to concerns over greenhouse gas emissions, the region will have a new, cleaner and potentially less expensive power source.

Already the  boom in natural gas has sparked a considerable industrial rebound in parts of eastern Ohio including the building of a new $650 million steel plant for gas pipes in the Youngstown area.  Karen Wright, whose Ariel Corporation sells compressors used in gas plants, has added more than 300 positions in the past two years. “There’s a huge amount of drilling throughout the Midwest,” Wright says. “This is a game changer.”

But the industrial rebound is not only about energy. Another critical factor is rising  wages in East Asia, including China. Increasingly, American-based manufacturing is in a favored position as a lower-cost producer. Concerns over “knock offs” and lack of patent protection in China may also spark a growing “Made in the USA” trend.

The shift back to U.S. production may be a great sign for many regions. Our No. 3 ranked area, Seattle-Tacoma-Bellevue, is picking up heavy metal jobs associated with the aerospace industry. A growing focus on domestic production for Boeing’s new aircraft could bring even more prosperity to the high-flying region, which also ranked No. 1 on our recent information industry ranking.

If new industrial growth is just another piece of good news in the Pacific Northwest, it’s manna from heaven to the long suffering industrial heartland heavily concentrated in the Great Lakes region, which includes much of Ohio, Michigan, Indiana, Illinois , Wisconsin and Minnesota.  Long reviled as the “rust belt” this area now leads in the industrial rebound with over 100,000 new manufacturing jobs in just the past year.

Particularly well positioned is No. 2 ranked Milwaukee, which is home to a wide array of specialized manufacturing firms ranging from machine tools to energy. Over the past year alone the region added almost 3900 heavy metal jobs and has consistently led other Great Lakes communities in job creation.

But Milwaukee is not the only rust belt rebound town. The greater Detroit area, No. 6 on our list, actually added the most heavy metal jobs — more than 12,000 — than any region of the country. The area’s ranking, however, was dragged down by its legacy; greater Detroit still has lost almost 130,000 positions in the past decade.

The heavy metal revival has a long way to go. And we cannot expect it to produce the same kinds of jobs produced in the last century. For example, the new jobs will be more highly skilled; even as the share of the workforce employed in manufacturing has dropped from 20% to roughly half that, high skilled jobs in industry have soared 37%, according to a New York fed study.

Regions seeking strong industrial growth will have to focus more and more on training more skilled workers. Even after years of declining employment and surplus numbers of graduates in the arts and law, manufacturers in heavy industry are running short on skilled workers. Industry expert David Cole predicts there could be demand for 100,000 new workers by 2013. According to Deloitte Touche, 83% of all manufacturers suffer a moderate or severe shortage of skilled production workers.

The resurgence of heavy metal should lead regions, and the federal government, to consider shifting their emphasis toward productive, skilled based training and away from a single-minded focus on the BA or graduate degree. Few regions suffer a shortage of art history or English graduates.   This more practical emphasis is particularly critical for the Midwest, which is home to four of the ten highest-ranked industrial engineering schools in the nation.

Even more important: training workers for the assembly lines of tomorrow. These jobs, notes Ariel’s Karen Wright, will require not BA degrees but high degrees of math and mechanical skills that can be apply to expanding companies like hers.

As we enter a new economic era, regions should look beyond the current obsession with “creative” and “information” industries. Instead, they should focus on a resurgent industrial economy — which then can provide a customer base for advertising, graphics and software companies — as a primary driver of economic growth.  Turn down those soulful   Adele tracks: Heavy metal is back.

By Joel Kotkin