Manufacturing industry growth is often one of the very first signs of economic recovery following a recession. In the US, this sign was particularly anticipated because it also signaled the end of a thirty-year manufacturing industry slump. Before 2010, manufacturing jobs were an ever-dwindling source of frustration for production sector workers. Since 2010, however, the industry has added more than half a million new jobs—some of them highly skilled.
Back in the days of yore—also known as pre-millennium times—the manufacturing industry provided a steady stream of employment opportunities. Despite a two-decade production sector decline, assembly line workers were still in reasonable demand and relatively simple jobs were regularly available. With the turn of the century, however, came change. Production facilities closed across America as manufacturing companies chose cheaper offshore labor to boost profits. Industry statistics were dismal.
When the 2007 housing bubble burst, it took the rest of the American economy with it—including the production industry. At first, corporations desperately tried to keep profit and loss as stable as possible, and foreign-made goods increased in number. After a time, consumer demand for American-made products rose significantly. Products embellished with a "Made in China" label simply didn't fly off the shelves any more. In short, US economic decline, the lack of manufacturing industry jobs, and consumer opinion led to the beginning of a reshoring movement.
US production sector growth began to show up in industry statistics in 2009, but took longer to become a firmly established trend. In 2010, signs of consistent improvement led to renewed faith in the manufacturing industry. By the end of 2013, factory activity in America was at a 2.5-year high and terrestrial product consumption figures were more encouraging than ever. In late December, the manufacturing industry scored a fifty-seven on the Institute for Supply Management's (ISM) official scale: any number over fifty indicates growth.
At the same time, Commerce Department data for November 2013 showed a 1 percent increase in construction spending. American consumers and businesses have begun to show renewed interest in construction projects previously considered too expensive. Because of the manufacturing industry's close ties to the construction sector, any improvement in construction statistics heralds production industry growth.
According to a recent Research and Markets report, the outlook for companies involved in surgical appliance and supplies production is also bright. The 179-page Surgical Appliance and Supplies Manufacturing Industry report, which was released in early 2014, included sector growth estimates. Using a complex set of forecasting tools, the economists predicted that annual outbound shipments would reach $64 billion by 2017.
The US manufacturing industry's recent resurgence is certainly a positive sign of America's recovery from the Great Recession. If the sector continues to improve through 2014, as pundits predict, it may form a solid foundation for US economic progress in general.
(Photo courtesy of Freedigitalphotos.net)
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