Tag: US manufacturing

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

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

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

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

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

‘Twas the Night Before Manufacturing Monday

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

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!

Manufacturing Grows At Fastest Pace Since June

The AP (5/2, Rugaber) reports, “US manufacturing grew last month at the fastest pace in nearly a year. New orders, production and a measure of employment all rose.” The Institute for Supply Management “says its index of manufacturing activity increased to 54.8 in April. That’s the highest level since June and up from 53.4 the previous month.”

CNN Money (5/2, Censky) reports, “Manufacturers reported that as new orders for their goods rose in April, factories ramped up production at a faster pace.” Manufacturers “also hired more workers, a welcome sign ahead of the government’s jobs report on Friday.” CNN Money notes, “Gradual improvement in manufacturing has been a bright spot in the economic recovery. Manufacturers added 120,000 jobs in first three months of the year, according to separate data collected by the Labor Department.”

Bloomberg News (5/2, Kowalski) reports, “The group’s orders gauge climbed to the highest level in a year, while its production measure put it its best performance since March 2011 and employment advanced to a 10-month high, today’s report showed. The group’s export index also improved.” According to Bloomberg News, “Stronger auto production bolstered the US economy from January through March, which may keep supporting manufacturing.”

IndustryWeek (5/2, Minter) reports economist Alistair Bentley with TD Economics “said price pressures on manufacturing ‘appear to have reached a near-term peak, as energy and commodity prices stabilize’ following their increases earlier this year.”

AFP (5/2) adds, “The manufacturing sector has been a driver of the US recovery from the deep 2008-2009 recession. But a steady drumbeat of disturbing economic and financial news from the eurozone and elevated oil prices cast a cloud over expectations, the firm said. ‘Comments from the panel generally indicate stable to strong demand, with some concerns cited over increasing oil prices and European stability,’ said Bradly Holcomb, head of the ISM manufacturing survey committee.”

From SME Daily Executive Briefing 5/2/2012

US Manufacturing Activity Grew In January.

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

Leading the News

Unemployment Claims Continue To Fall.

The CBS Evening News (12/22, story 2, 2:05, Pelley) reported that “there are some other encouraging things about the economy” now, including a drop in the number of people filing for unemployment last week, which fell to 364,000, the lowest “since April of 2008.”

According to Bloomberg News (12/22, Homan, Willis), the 45 economists surveyed by Bloomberg had predicted an average “increase in jobless claims to 380,000,” however “the number of applications” has fallen 40,000 in the last three weeks. Chief US economist for High Frequency Economics, Ian Shepherson, said “this is great news,” and while “one unexpectedly low number can easily be a fluke” and “two are interesting,” three may say “something real is happening in the labor market.” Further, there was a decline of 79,000 in the number of “people continuing to receive jobless benefits,” now down to 3.55 million, the lowest level since September 2008.

According to the AP (12/22, Wagner, Crutsinger), “the steady improvement in the job market is unquestionable,” and BMO Capital Markets senior economist Jennifer Lee says “I think everyone is starting to come around to the view that, yes, there is a recovery going on.” Further, minus “a spike this spring” following damage to “US manufacturing” after the earthquake and tsunami in Japan, “unemployment claims” have been declining “steadily for a year and a half” after peaking “at 659,000 in March 2009.” In the four years prior to “the Great Recession,” the numbers were usually between 300,000 and 350,000.

The Wall Street Journal (12/23, A4, Dougherty, Subscription Publication, 2.08M) notes that these weekly unemployment claims may vary due to seasonal differences, but the monthly averages for the past three months have shown declines in unemployment applications, and economists are now predicting a more positive outlook for job hiring.

US Economy Projected To Grow About Two Percent In 2012. The Wall Street Journal (12/23, A4, Dougherty, Subscription Publication, 2.08M) reports that economists are now predicting that in 2012 the US economy will grow at a rate of about two percent based on continued issues in the housing market, tepid job growth, government spending cuts and the economic crisis in Europe. However, this forecast means that 2012 should see a bit more growth than this year’s estimated 1.7 percent yearly growth, and it’s possible that growth will be higher than anticipated in 2012, especially given Q4 2011’s predicted 3.5 percent growth.


Consumer Confidence Edges Higher, Beating Expectations.
Bloomberg News (12/22, Willis) reports, “The Thomson Reuters/University of Michigan final index of consumer sentiment climbed to 69.9 from 64.1 at the end of November.” A Bloomberg News survey projected that consumer sentiment, or confidence, would increase to “for 68 after a preliminary reading of 67.7.” According to Bloomberg, “a drop in unemployment and lower gasoline prices may be boosting confidence, raising the odds that the pickup in household spending will continue into 2012.”

Canadian Manufacturing On The Rebound.

The Globe and Mail (Toronto, CA) (12/23) reports a slideshow titled, “Manufacturing set for year-end rebound,” noting that “Canadian manufacturing had its second-best month for 2011 in October and analysts expect another increase this month.” The slideshow focuses on the metals sector.

Auto, Energy Industries To Drive Steel Industry Growth.

Following earlier reports on the mixed but generally upbeat predictions for the US steel industry, IndustryWeek (12/23, Katz) reports, “The industry is not expected to reach a full recovery until 2013, according to Fitch Ratings.” Monica Bonar, a senior director at Fitch, said “steel producers are being cautious about how much inventory they’re stocking, including raw materials, on fears of a downturn.” Larry Kavanagh, president of the Steel Market Development Institute, said demand from the auto industry is expected to rise in the coming year, and that “the energy sector presents significant growth potential for the steel industry, led by the boom in shale gas exploration and distribution.”

Missouri Gains 11,000 Manufacturing Jobs.

The Kansas City Business Journal (12/23, Subscription Publication) reports “Missouri gained 10,900 manufacturing jobs between December 2010 and last month, an accomplishment Gov. Jay Nixon lauded Thursday.” Nixon said, “For generations, manufacturing has been a vital driver of Missouri’s economy, and modern manufacturing companies have offered opportunities for outstanding careers to folks across our state.” Nixon “also praised growth yet to come in the state’s automotive sector, particularly Ford Motor Co. and General Motors Co. making historic announcements in October.”

Mass Layoffs Decline In Missouri. Another Kansas City Business Journal (12/23, Subscription Publication) article reports, “Missouri mass layoffs were less common in November, dropping to 22 events compared with 29 a year earlier, the US Department of Labor reported Thursday.” In November, “1,440 Missourians made initial claims for unemployment insurance, down from 2,159 a year prior,” the Labor Department reported. And while “the manufacturing sector claimed a quarter of the mass layoff events,” the article notes that “15 of the 21 manufacturing subcategories saw over-the-year decreases in claims.”

From SME Daily Executive Briefing 12.23.2011