Tag: US manufacturers

‘Twas the Night Before Manufacturing Monday

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It’s the time of year where people all over the world can expect to hear glad tidings from carolers, but surprisingly, signs of happiness and brighter futures have also been coming from the pages of the daily newspaper. We’re accustomed to hearing about job losses and economic uncertainty, but American manufacturing just received a huge present this year thanks to the rebounding of the U.S. auto industry.

After the global financial crisis of 2008, many automakers looked like they wouldn’t survive the year, even the largest of manufacturers like General Motors. In order to stay afloat, GM had to enter a government-backed state of bankruptcy in 2009. At the time, it looked like one of the biggest auto manufacturers was going to go under, and there was nothing anyone could do to stop it.

Jump forward a few years, and the United States government sold its remaining shares of GM stock, returning its holdings to the public market in a sign of confidence over the company’s future. Not only has GM rebounded, it is soaring ahead with a recent announcement that the company will invest in American factories, saving many jobs and creating hundreds more.

Five plants across the American Midwest will receive about $1.3 billion in investment from General Motors, according to this article published by Forbes. This Christmas gift is more than charity, however, as these plants will focus on creating fuel-efficient transmission and engines as well as work on other vehicle quality improvements. Three of the plants are in Michigan and one each is in Indiana and Ohio.

General Motors corporate plans also spell happy days for American Christmases in the future. After decades of globalization drawing away jobs from the United States, GM announced that its Australia operations would wind down at the same time that they’re increasing their presence back in America.

It may only be one company, but it’s a great sign that one of America’s former great corporations is making a rebound, and choosing to do it on American soil. This is just one of the reasons Marshall Fabrication Machinery has found to rejoice in the United States manufacturing industry this holiday season.

Signs of Optimism Regarding the Strength of American Manufacturing

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Signs of optimism regarding the strength of American manufacturing have been popping up all over the country in recent months. Confidence in our domestic industries has been tough to come by in recent days, but some indicators of economic prosperity are starting to make their presence felt in factories and facilities across the United States.

Many know about the long decline of U.S. manufacturing during the last half of the 20th Century, and the global financial crisis of 2008 seemed to be a death knell for many. Concerns about the federal deficit and the outsourcing of American manufacturing jobs to foreign soil have become much more mainstream in recent years. Political battlegrounds have been staged simply on the promise of more work in manufacturing.

However, some data released by the U.S. Bureau of Labor Statistics shows that the decline is bottoming out and may even be reversing, at least slightly. Between the years 2000 and 2009, the number of full-time manufacturing jobs in America was reduced by more than 5 million, from 17.2 million jobs to 11.8 million jobs. Although we’re nowhere near that 2000 peak, manufacturing employment has made mild gains every year since 2009. Currently, just under 12 million American workers are employed by manufacturing industries.

Percentage of gross domestic product is another important factor that determines the actual strength of American manufacturing and production industries. Again, the years between 2000 and 2009 were very damaging for these businesses, according to statistics cited in this piece published on Manufacturing.net. However, two years after 2009, manufacturing had recovered by almost an entire percentage point, contributing 11.9 percent of the country’s total GDP.

Manufacturing firms swept up in this wave of optimism should make sure that they have state-of-the-art machining equipment on hand to continue operating efficiently and take on even more projects. C Marshall Fabrication Machinery of Simi Valley, CA, is a purveyor of the best quality in plate rolls, angle rolls, press brakes and other metalworking machines.

On November 18-21, FABTECH 2013 returns to Chicago. FABTECH is the most important manufacturing show in America and everyone who wants to be someone in this business will be there. Our next post will focus on FABTECH, so be on the look out for that!

US Manufacturing Activity Grew In January.

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The Milwaukee Journal Sentinel (2/2, Barrett) reports, “Boosted by an increase in new orders, the production at US factories grew in January at the fastest pace in seven months.”

Bloomberg News (2/2) reports, “The Institute for Supply Management’s index climbed to 54.1, from 53.1 in December, the Tempe, Arizona-based group’s report showed” Wednesday. “The ISM’s new orders measure climbed to 57.6, the highest since April, from 54.8, and the gauge of export orders rose.” Bloomberg News notes, “Manufacturing accounts for about 12 percent of the economy and was at the forefront of the recovery that began in June 2009.”

The AP (2/2, Rugaber) reports, “Consumers are buying more cars and trucks, while businesses ordered more machinery and other equipment. That has driven manufacturing, which expanded for the 30th straight month.”

The Hill (2/1, Needham) “On The Money” blog reported, “Export orders also rose, a sign that US manufacturers haven’t yet been affected by Europe’s slowing economy. Meanwhile, a separate report from the Commerce Department showed that construction spending increased 1.5 percent in December, the fifth straight monthly gain. That pushed spending to a seasonally adjusted annual rate of $816.4 billion, the highest level in 20 months.”

Also covering the story are Reuters (2/2, Schnurr), MarketWatch (2/2, Bartash), AFP (2/2), IndustryWeek (2/2) and other media sources.

Manufacturing Growth In Canada Slows Sharply In January. Canada’s Financial Post (2/2) reports, “Canadian manufacturing growth slowed markedly in January, data contained in the Canadian Manufacturing Purchasing Managers Index showed” yesterday. “‘The headline RBC PMI – a composite indicator designed to provide a single-figure snapshot of the health of the manufacturing sector – registered 50.6 in January, down sharply from 54.0 in December, and indicated the weakest improvement in Canadian manufacturing business conditions since data collection began in October 2010,’ said the report, compiled in association with financial services company Markit.” The Post reports, “While the survey found that manufacturing conditions did improve in January, rates of expansion in output and new order growth were the weakest since data collection began.”

Reuters (2/2, Cook), Dow Jones Newswires (2/2, Menon, Subscription Publication) and other media sources also cover the story.

From SME Daily Executive Briefing 2/2/2012

ISM Forecast: US Manufacturers Seen Leading Growth Next Year.

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U.S. manufacturers are more optimistic about sales, spending and hiring for next year than service companies, a sign factories will remain at the forefront of the economic expansion, according to the Institute for Supply Management.

Purchasing managers at factories anticipate sales will grow 5.5 percent next year and capital investment will increase 1.9 percent, the Tempe, Arizona-based group’s semiannual forecast showed today. Revenue and spending will increase at a slower pace among service providers, which account for about 90 percent of the economy.

“Manufacturing has demonstrated its resilience throughout this challenging economic recovery period, with consistent growth dating back to August of 2009,” Bradley Holcomb, chairman of the group’s factory survey, said in a statement. Manufacturers “expect to see continued growth in 2012.

”The increase in factory demand next year may fall short of the improvement in 2011. The projected gain in 2012 sales compares with a 7 percent increase for this year. For the services industry, revenue is forecast to be stronger than the 1.5 percent gain in 2011.
Factory employment is projected to increase 1.3 percent in 2012, compared with a 1.1 percent projected rise at non- manufacturing companies. Sales in the services industry will increase 3.1 percent next year and investment spending will rise 0.1 percent.

ISM Factory Gauge

The factory gauge has averaged 55.4 so far this year, reaching a 2011 low of 50.6 in August and since rising to 52.7 last month. The service index has averaged 54.6 in 2011. It dropped last month to 52, its lowest since January 2010.

Growth in emerging markets is helping sustain demand for U.S.-produced goods. Deere & Co. (DE), the world’s largest farm- equipment maker, on Nov. 23 reported fiscal fourth-quarter profit and forecast 2012 earnings that topped analysts’ estimates.

“We expect sound farmer confidence and strong equipment demand,” investor communications manager Susan Karlix said on a conference call. “Globally, coming off 2011’s high levels, the 2012 industry outlook is for stable commodity prices and farm income.”

To contact the reporter on this story: Bob Willis in Washington at bwillis@bloomberg.net
To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net