American manufacturing workers and business owners alike turn to industry reports for information on the health of the sector. Solid growth in 2012 left many hopeful for the future, but economic lag in 2013 seems to have kept gains below the expectations of many industry analysts. Industry reports from the end of the third quarter and into the fourth quarter of the year show constrained growth, with larger companies far outpacing slower organizations. These industry reports seem to indicate that growth in the manufacturing sector is likely to remain slow for some time.
Careful attention to manufacturing trends can help workers and managers anticipate future workloads. An annual growth rate of 2.3 percent through September 2013 left many manufacturing workers without much hope for the immediate future. The year 2012 saw a growth rate of 10.5 percent, and 2011 clocked in at a much more hopeful 15 percent. Industry reports seem to show that slower economic activity across the United States continues to affect the growth of the manufacturing sector as a whole. Private companies offering services across all markets show an uptick of 3.8 percent, over 50 percent greater than that of private companies in the manufacturing sector.
Manufacturing trends continue to indicate slowness even though other markets show signs of an increase going into the fourth quarter. Industry reports in October showed a 55.4 percent nonmanufacturing index, making it the forty-sixth month in a row during which sectors other than manufacturing showed growth. October's showing helped those markets beat expectations, especially in light of the government shutdown that occurred during the month. Rising mortgage rates and other concerns in the housing industry have also hurt manufacturing numbers across the nation.
Private manufacturers continue to struggle with slowing sales, and manufacturers with annual sales less than $5 million actually saw a 3 percent negative growth rate. Recent speeches from President Barack Obama regarding the reshoring of manufacturing businesses such as Caterpillar and Ford seem to cast a light of hope on the industry, but economic concerns dampen growth in the market. To help support the sector, Obama recently announced the creation of three new manufacturing hubs in the country.
US manufacturing industry reports all show constrained growth. Smaller private companies are beginning to show negative growth, which could be a sign of continued troubles in the market. Larger companies continue to grow, but at rates lower than expected by industry analysts. Difficulties in the housing market, including rising mortgage rates, appear to indicate that the constraint is likely to continue. Manufacturing workers and managers should take care to follow emerging trends and industry reports for news on the markets. President Obama has taken great interest in the issue and is spearheading campaigns to help manufacturing and the economy as a whole.
(Photo courtesy of freedigitalphotos.net)
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