MAPI Forecasts Positive US Industrial Outlook

As US manufacturers finalize plans for 2014 and beyond, many companies are looking to manufacturing trends as an indicator of potential industry growth. According to recent reports from the Manufacturers Alliance for Productivity and Innovation (MAPI), industry trends point to continued growth in the manufacturing sector, which bodes well for industry professionals.

For many in the manufacturing industry, the reports from MAPI offer valuable guidance for short-term and long-term business planning. Manufacturing professionals who stay abreast of the latest manufacturing trends will find it easier to make decisions that don't expose the company to a great deal of risk. MAPI releases a new industrial outlook every three months, giving businesses the opportunity to track industry trends.

In December 2013, MAPI released its final industrial outlook for the year. According to the report, industrial production in the manufacturing industry grew by 1 percent in the third quarter of the year. Growth was most dramatic in the month of October, which saw an increase of 3.8 percent.

When compared to the second quarter of 2013, which saw no growth, the 3.8 percent rise is heartening. It does not quite meet the 4.9 percent growth of the first quarter of the year, but it indicates that the industry is steadily—if slowly—regaining its prerecession power. According to the MAPI report, the industry's weak performance in the middle of the year results from the industry's necessary adjustment in response to the overall economic slowdown. In the third quarter, after companies had realigned their production and orders, growth began once more. Manufacturing trends usually correlate to the country's overall performance, and the growth in the third quarter is directly related to the improving US economy during the same period.

After three months of continued growth, the MAPI report predicts that 2014 will see an increase in manufacturing activity. The report points to positive signs and a number of manufacturing trends that indicate that the industry will continue to accelerate by 1 percent each year in 2014 and 2015. Although the growth will not bring the industry to its prerecession levels, it is a positive sign for manufacturing businesses.

Among the positive manufacturing trends outlined in the MAPI report is the continued rise in the Institute for Supply Management's Purchasing Managers' Index. The index was positive in both October and November, indicating that the industry is continuing to expand. According to MAPI, business investments in the industry are partly responsible for the upswing. And, as a recent story from the United States Department of the Treasury reported, companies across the country are expressing growing interest in domestic manufacturing investments.

For manufacturing businesses, the positive industry forecast may be a sufficient catalyst to encourage investments and growth, which will further boost industrial production. By paying attention to the latest manufacturing trends, you can help your company determine the most strategic and profitable business expansion possibilities in 2014.

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