How ‘Made in the USA’ can see a renaissance, and…

How ‘Made in the USA’ can see a renaissance, and…

Mar 6, 2017

“How ‘Made in the USA’ can see a renaissance, and what will (and won’t) change” By Trent Gillies, CNBC President Donald Trump has promised to bring jobs back to America, but the number of U.S. manufacturing jobs has been on a 30-year decline. Can that entrenched trend be reversed? A growing number of market experts believe the answer is yes. “I’m very optimistic,” small businessman Drew Greenblatt told CNBC’s “On The Money” in an interview. “We’re going to see an American manufacturing renaissance” Greenblatt, chair of the National Association of Manufacturers and president of Baltimore-based Marlin Steel Wire Products, pointed to policies that Trump wants to enact as a potential catalyst to new hiring. “We’re talking about reducing regulations by 75 percent, cutting our tax rate from 40-something percent to 15 percent,” he said. “It’s just going to make America more attractive to bring back opportunities to our country,” he added. However, in industries such as apparel, more than 97 percent of clothing and shoes are made overseas. Given the entrenched economic realities, others are skeptical that any government policy can spark a manufacturing rebound “There’s not much that can bring most of those jobs back, ” retail consultant Jan Kniffen told CNBC in an interview. “We haven’t made patterns in America, we haven’t made the product in America forever,” he said.   Kniffen added that the U.S. “would need factories, but those factories would have to be so automated, the jobs would be maintaining the equipment not producing the product.” That is because “the cost of producing abroad is so low and shipping not that much,” he said. Greenblatt remained optimistic that at least some sectors could see a resurgence. ” I acknowledge some industries are not coming back here, it makes more sense to do it elsewhere. But things like making airplanes and bulldozers and cars, it’s going to grow here, it’s going to thrive here.” Greenblatt’s Marlin Steel exports to 39 countries from its Maryland factory. He told CNBC that the company designs and fabricates wire baskets for automotive clients including Toyota Motor and General Motors. “We make baskets for Caterpillar and Boeing,” he said. “These companies are building factories in...

US manufacturing surges to a 3-year high in February

US manufacturing surges to a 3-year high in February

Mar 1, 2017

By Akin Oyedele, Business Insider US manufacturing expanded more than expected in February, according to the Institute of Supply Management.  The monthly purchasing manager’s index jumped to 57.7, the highest since December 2014 and more than economists’ forecast for 56.2.  According to ISM, orders rose at the fastest pace since February 2013.  Earlier regional manufacturing surveys, including those from Philadelphia and New York, had also pointed to an overall improvement in the sector. “Growth is being driven by robust domestic demand, stemming in turn from buoyant consumers and increased investment spending by the energy sector in particular,” said Chris Williamson, the chief business economist at IHS Markit.  Markit Economics’ monthly PMI was 54.2, lower than economists’ forecast for 54.5 according to Bloomberg.  “Manufacturing is far from booming, however, as the strong dollar means near-stagnant exports continue to act as a drag on growth,” he added....

Machine Tool Orders Surge in December

Machine Tool Orders Surge in December

Feb 13, 2017

By Bill Koenig, Advanced Manufacturing Machine tool orders surged 20.6% in December as manufacturing “is showing signs of growth,” the Association for Manufacturing Technology said today in a monthly report. Orders totaled $406.72 million, up from a revised $337.24 million in November, according to AMT (McLean, VA).  The December figure was just under the $406.95 million in December 2015. “There has been a significant uptick in shipments for cutting tools,” Douglas K. Woods, AMT’s president, said in a statement. “Gains for machine shop investment are promising because they typically mark an overall greater need for capacity, and a broader upturn on the horizon.” For all of 2016, machine tool orders fell 4% to $4.01 billion, AMT said. The gap between 2016 and 2015 orders narrowed significantly during the second half of last year. Orders for the first six months of the year plunged 16% compared with 2015’s first half. One factor in the second-half improvement was IMTS 2016, the massive trade show organized by AMT and held in Chicago. The figures are based on information from companies participating in AMT’s US Manufacturing Technology Orders program. Industry Recovery The group has said it expects a sustained recovery in machine tool orders in April or May. Other economic reports related to manufacturing have shown improvement. The Institute for Supply Management said Feb. 1 that its PMI, which measures economic activity in manufacturing, was 56% in January. That was the highest level for the index in more than two years. The PMI is  based on a survey of purchasing and supply executives in 18 industries....

US Manufacturing sector starts on a firm footing in 2017

US Manufacturing sector starts on a firm footing in 2017

Feb 8, 2017

By Orbex Team, FXStreet Two separate gauges of the US manufacturing sector confirmed that the sector kicked off 2017 on a firm footing evidenced by acceleration in new orders and output growth. Factory output in the US was choppy over the past few years with one of the manufacturing gauges, the ISM manufacturing PMI falling into a contraction around late 2015 – early 2016. Manufacturers were squeezed by a stronger dollar which curtailed demand for the US made products. Manufacturing was, however, seen stabilizing by mid-2016.   New order growth accelerates to a 28-month high The report released last week by IHS Markit suggested that improving business conditions alongside sustained low unemployment helped to boost the manufacturing sector. IHS Markit’s manufacturing PMI rose to 55.0 in January, from 54.3 in December. However, the January’s headline print was slightly off from the flash estimates which showed a reading of 55.1. Still, a reading above 50 indicates expansion in the manufacturing sector and Markit’s gauge of manufacturing PMI continued to rise steadily. Markit – Manufacturing PMI, U.S. The IHS Markit’s data showed a renewed acceleration in output growth among the manufacturing firms that were surveyed. The rate of expansion rose to the strongest level in 22-months with respondents noting that production volumes had increased with client demand improving. This is expected to boost inventory levels at the start of the year. The report highlighted the optimism among businesses for the year ahead. Chris Williamson from Markit said, “Production is consequently growing at the strongest rate for almost two years, and inventories are rising at a rate not seen for nearly a decade as firms respond to higher demand, suggesting the goods-producing sector will make a decent contribution to first quarter GDP.”   US ISM Manufacturing jumps to a 2-year high The Institute of Supply Management’s (ISM) gauge of manufacturing also showed similar trends. The survey report showed that factory activity in the US accelerated to the fastest pace in more than two years. The ISM manufacturing PMI rose to 56.0 in January up from 54.5 in December. ISM Manufacturing PMI, January 2017 Some analysts believe that the gains in the manufacturing sector came partly on account of increased optimism...

Brighter Days Ahead for U.S. Manufacturing?

Brighter Days Ahead for U.S. Manufacturing?

Jan 18, 2017

By Jenel Stelton-Holtmeier, mdm U.S. industrial manufacturers are optimistic about their own prospects for 2017, according to PwC’s fourth-quarter Manufacturing Barometer. But their outlook for others remains dampened in comparison. A significant majority of PwC manufacturing panelists (78 percent) noted that they believe the U.S. economy began to show “sharp upward growth in the fourth quarter of 2016,” the report notes. But only 13 percent could say the same for the global economy – down from 20 percent two quarters ago. That despite the fact that 67 percent reporting their own international sales were the same or up during the quarter. Most panelists (85 percent) also forecasted positive revenue growth in the year ahead, with average own-company growth expected to be around 4.6 percent in 2017. Only 2 percent expect negative growth, and 2 percent expect sales to be flat. But still 11 percent declined to report because of continued uncertainty in “this fast-changing U.S. economic environment.” The challenge for many manufacturers over the last few years is that the industrial sector has seen slower growth than many other sectors. Industrial production in the U.S., for example, has been relatively flat for most of 2016, according to the Federal Reserve. And manufacturing facilities have room to ramp up, operating at an average of around 75 percent capacity (5 percentage points below the long-term average). But as sentiment changes, these figures may change, as well. Lack of investment (business and residential) has been a key drag on economic growth in 2016, according to the Federal Reserve. With more optimism, will companies be more willing to expand investment? And manufacturing employment edged up in December, though it still remains below its January 2016 peak. There’s still some hesitation to hire, according to the PwC report, but 35 percent of panelists said they expect to add employees in the next 12 months. However, according to respondents to the latest MDM Industry Outlook survey, finding skilled talent also remains a struggle. Many companies are still looking for the plug-and-play employee who can do everything as soon as they start, but that might not be the best approach for long-term success. Investment in building an onboarding and ongoing training...