US manufacturing at highest level in more than 14 years

US manufacturing at highest level in more than 14 years

Sep 4, 2018

By Leia Klingel, Fox Business Trump: We’ve added over 400,000 new manufacturing jobs President Donald Trump touts U.S. job growth during a Make America Great Again Rally in Charleston, West Virginia.       Watch the latest video at foxbusiness.com The latest reading on America’s manufacturing activity has provided yet another piece of evidence that the U.S. economy is firing on all cylinders. In August, economic activity in the U.S. manufacturing sector hit its highest level since May 2004, according to the Institute of Supply Management (ISM). The ISM’s August manufacturing index was 61.3, above the 57.7 economists were expecting, and also above July’s 58.1 reading. According to ISM, sales of factory-made products, output and employment all increased in August, while inflation slowed. Recent tax cuts and strong consumer sentiment are positives for the U.S. economy, but manufacturers have expressed concerns about cost pressures due rising employee wages and supply chain inefficiencies. Additionally, survey participants voiced anxieties about how reciprocal tariffs will impact company revenue and current manufacturing locations. Of the 18 manufacturing industries, 16 reported growth in...

China really is to blame for millions of lost U.S. …

China really is to blame for millions of lost U.S. …

May 15, 2018

“China really is to blame for millions of lost U.S. manufacturing jobs, new study finds” By Jeffry Bartash, MarketWatch Millions of Americans who lost manufacturing jobs during the 2000s have long ”known” China was to blame, not robots. And many helped elect Donald Trump as president because of his insistence that China was at fault. Evidently many academics who’ve studied the issue are finally drawing the same conclusion. For years economists have viewed the increased role of automation in the computer age as the chief culprit for some 6 million lost jobs from 1999 to 2010 — one-third of all U.S. manufacturing employment. Firms adopted new technologies to boost production, the thinking goes, and put workers out of the job in the process. Plants could make more stuff with fewer people. In the past several years fresh thinking by economists such as David Autor of MIT has challenged that view. The latest research to poke holes in the theory of automation-is-to-blame is from Susan Houseman of the Upjohn Institute. Academic research tends to be dry and complicated, but Houseman’s findings boil down to this: The government for decades has vastly overestimated the growth of productivity in the American manufacturing sector. It’s been growing no faster, really, than the rest of the economy. What that means is, the adoption of technology is not the chief reason why millions of working-class Americans lost their jobs in a vast region stretching from the mouth of the Mississippi river to the shores of the Great Lakes. Nor was it inevitable. Autor and now Houseman contend the introduction of China into the global trading system is root cause of the job losses. Put another way, President Bill Clinton and political leaders who succeeded him accepted the risk that the U.S. would suffer short-term economic harm from opening the U.S. to Chinese exports in hopes of long-run gains of a more stable China. No longer needing to worry about U.S. tariffs, the Chinese took full advantage. Low Chinese wages and a cheap Chinese currency CNYUSD, -0.6037%   — at a time when the dollar DXY, +0.48%  was strong — gave China several huge advantages. Companies shuttered operations in the U.S., moved to China and eventually set up...

Manufacturers expanding at fastest pace in three years…

Manufacturers expanding at fastest pace in three years…

Apr 25, 2018

“Manufacturers expanding at fastest pace in three years, flash PMI data show” By Jeffry Bartash, MarketWatch U.S. economy is speeding up again, but inflation is warming up too, IHS Markit finds The numbers: American companies grew faster in April, especially manufacturers, in a reflection of a steadily expanding U.S. economy. But inflationary pressures increased as well. The flash IHS Markit U.S. manufacturing PMI climbed to 56.5 this month from 55.5 and touched a three-and-a-half-year high. Readings over 50 indicate expansion. A similar survey of service-oriented businesses that employ most Americans also rose. It edged up to 54.4 from 54. A flash reading is typically based on approximately 85%–90% of responses each month. At the same time, the survey showed the cost of raw or partly finished materials increased at the fastest pace in almost five years. Firms said the recently announced White House tariffs on steel as well as a large basket of Chinese goods were partly to blame. What happened: Businesses boosted production in April to match an increase in new orders. Companies also acted more aggressively to secure materials from suppliers because they are taking longer to deliver them. That suggests companies are running into bottlenecks, a potential hurdle for the economy if the situation gets worse. Tight supplies also mean higher prices — aka inflation. Even with new orders increasing, companies eased back on hiring. They focused more on improving efficiency — no surprise given a growing shortage of skilled labor. Big picture: The economy is ramping up for a strong spring, but shortages of skilled labor, rising inflation and the threat of widespread tariffs could put a cap on U.S. growth despite recent tax cuts and higher federal spending. Higher inflation could also spur the Federal Reserve to raise interest rates more aggressively, another potential drag on faster U.S. growth. What are they saying?: “After a relatively disappointing start to the year, the second quarter should prove a lot more encouraging,” said Chris Williamson, chief business economist at IHS...

China Lists $50B of US Goods it Might Hit With 25 Percent…

China Lists $50B of US Goods it Might Hit With 25 Percent…

Apr 5, 2018

“China Lists $50B of US Goods it Might Hit With 25 Percent Tariff” By Joe McDonald, Associated Press Featured on Manufacturing.net China on Wednesday issued a $50 billion list of U.S. goods including soybeans and small aircraft for possible tariff hikes in an escalating and potentially damaging technology dispute with Washington. The country’s tax agency gave no date for the 25 percent increase to take effect and said that will depend on what President Donald Trump does about U.S. plans to raise duties on a similar amount of Chinese goods. Beijing’s list of 106 products included the biggest U.S. exports to China, reflecting its intense sensitivity to the dispute over American complaints that it pressures foreign companies to hand over technology. The clash reflects the tension between Trump’s promises to narrow a U.S. trade deficit with China that stood at $375.2 billion last year and the ruling Communist Party’s development ambitions. Regulators use access to China’s vast market as leverage to press foreign automakers and other companies to help create or improve industries and technology. A list the U.S. issued Tuesday of products subject to tariff hikes included aerospace, telecoms and machinery, striking at high-tech industries seen by China’s leaders as the key to its economic future. China said it would immediately challenge the U.S. move in the World Trade Organization. “It must be said, we have been forced into taking this action,” a deputy commerce minister, Wang Shouwen, said at a news conference. “Our action is restrained.” A deputy finance minister, Zhu Guangyao, appealed to Washington to “work in a constructive manner” and avoid hurting both countries. Zhu warned against expecting Beijing to back down. “Pressure from the outside will only urge and encourage the Chinese people to work even harder,” said Zhu at the news conference. Companies and economists have expressed concern improved global economic activity might sputter if other governments are prompted to raise their own import barriers. The dispute “may compel countries to pick sides,” said Weiliang Chang of Mizuho Bank in a report. “U.S. companies at this point would like to see robust communication between the US government and the Chinese government and serious negotiation on both sides, hopefully...

U.S. Reshoring: A Collaborative Challenge

U.S. Reshoring: A Collaborative Challenge

Mar 27, 2018

Featured in Design-2-Part Magazine Manufacturing Experts Answer 5 Questions on How to Turn the Tide FAIRPORT HARBOR, Ohio—North America’s $137 billion metalforming industry is driven by the production of myriad precision metal products using stamping, fabricating, spinning, slide forming, and roll forming technologies, as well as vital value-added processes. In recent decades, approximately 3-to-4 million U.S. manufacturing jobs were lost to offshoring. The tide seems to be turning modestly in recent years as companies return U.S. production, or sourcing, from offshore. In comparison to 2000-2003, when the United States lost about 220,000 manufacturing jobs per year (net) to offshoring, 2016 achieved a net gain of 27,000. Progressively bridging this gap presents huge collaborative opportunities and challenges for all manufacturers, associations, employees, communities, and the U.S. government itself. The following Q&A explores factors that are key to the collective goal of gaining momentum in successfully returning the manufacturing of parts and products to the United States from offshore. Authors of the Q&A are two men with a vested interest in the subject of reshoring: John Stoneback, president of JM Performance Products, Inc., of Fairport Harbor, Ohio; and Harry Moser, president of the Reshoring Initiative, based in Kildeer, Illinois. JM Performance Products, Inc. has been manufacturing CNC mill spindle optimization products since 2009. The company’s Patented High Torque Retention Knobs overcome a critical “loose-tool” design flaw inherent in CNC v-flange tooling that was responsible for costly, industry-wide issues with CNC milling and boring that negatively impacted production costs, cycle time, and tooling costs. An essential element of the patented design is a knob that is longer and reaches a little deeper into the holder’s threaded bore. As a result, all thread engagement occurs in a region of the tool holder where the diameter is large, and where there is correspondingly more material to resist deformation. The Reshoring Initiative, founded in early 2010, takes action by helping manufacturers realize that local production, in many cases, reduces their total cost of ownership of purchased parts and tooling. The Reshoring Initiative also trains suppliers in how to effectively meet the needs of their local customers, giving suppliers the tools to sell against lower priced offshore competitors. The Initiative is...