Successfully navigating the U.S. manufacturing industry has become more challenging in recent memory. This country is losing out on jobs and opportunities to expanding overseas markets, and the overall economy has been less than ideal for organizations within its borders.
However, many of the toughest conditions are giving way to a more favorable environment. New manufacturing firms are finding a home here in the U.S., not only increasing the number of jobs but also opening up new doors for investors. If the positive trends win out, the U.S. could be back near the top of global manufacturing production sooner, rather than later.
Here at Clark Schaefer Hackett, we are well aware of the ups and downs you encounter on a regular basis as a member of the manufacturing industry. Given the demands of your profession, it can be hard to find time to stay abreast of current events and other developments in this sector. However, that can be a great way to find new opportunities and learn about upcoming trends in manufacturing.
To help you gain a better understanding of the manufacturing sector, we’ve compiled several industry reports that could be of interest to you:
Manufacturing economy experiences growth
The manufacturing sector has been put in a tough spot in the past due to the nation’s economy. Thankfully, much of that is changing, as better conditions appear to be taking hold.
According to the Institute for Supply Management’s September 2014 Report on Business, the manufacturing economy – and the overall national economy – both experienced growth in September. That marks 16 months in a row of positive gains for this sector alone. Information on individual manufacturing industries is gathered by ISM by polling supply executives.
“Comments from the panel reflect a generally positive business outlook, while noting some labor shortages and continuing concern over geopolitical unrest,” explained ISM chair Bradley Holcomb in a statement.
Respondents to the ISM survey spoke to increased business, added shipments, more sales and a stronger outlook. ISM also found that both manufacturing imports and exports were growing as well.
Ohio sees localized improvement
While the national trends for the manufacturing sector are positive, Ohio has also been a part of the recent improvements.
According to the Cleveland Plain Dealer, the Ohio manufacturing segment was one of the hardest hit this recent recession. Now, however, the industry is doing more without its peak number of workers.
“The industry has become more productive, so it is producing more using less people,” Jacob Duritsky, managing director of research at nonprofit economic development organization Team Northeast Ohio, told the media outlet.
The push for increased manufacturing in Ohio is progressing on the political level as well. The Cleveland Plain Dealer explained that several politicians are advocating for industry growth across the state. One is Sen. Sherrod Brown, one of the senators currently working on a piece of legislation that would affect manufacturing jobs and possibly help workers connect with new employment opportunities.
“You create wealth one of three ways,” Sen. Brown told the Plain Dealer. “You either grow it, mine it or make it. There’s nothing like manufacturing and the spinoff that comes from it, when people can spend more in local communities because of high-paying jobs. Manufacturing is important to building the middle class and it’s helping to lead our economic recovery.”
More jobs will bolster sector
Manufacturing jobs in the U.S. will soon get some assistance thanks to a major effort from Tesla Motors Inc. The popular electric-vehicle maker recently chose Nevada as the location for its new $5 billion factory, helping increase the number of manufacturing jobs and the entire population of the state in one move.
This new factory will be used for the production of lithium-ion batteries, critical to each of Tesla’s vehicles. According to the Motley Fool, the new Tesla factory could create as many as 22,000 new jobs by the time it is fully operational in 2020. This focus on batteries is great for investors as well, as this segment is in the midst of substantial growth.
Overall, the choice of Nevada from Tesla is a good sign that there is still room in the U.S. for economic expansion and increased manufacturing output. As conditions continue to shift, make sure you are up-to-date on all current events. Our experts at Clark Schaefer Hackett can assist you with all your manufacturing needs. Contact us today to learn more.