Manufacturing is strong, and that’s a good thing

The Great Recession of 2009 took a toll on manufacturing. However, manufacturing has risen from those dark days, just as it has done before. While some are calling it a manufacturing renaissance, other pundits are saying it’s just a myth. As typical with news about anything, opposing views flood the airwaves and you need to take the time to wade through the facts to unearth the truth. That’s not always an easy task, but manufacturing’s future is something important to our loyal subscribers, so I mined through the latest numbers from the Bureau of Economic Analysis to get today’s pulse of manufacturing.

More than 12 million Americans are directly employed in the industry while supporting roughly 17.6 million jobs. In 2009, manufacturing contributed $1.73 trillion to the economy. Since then, the sector has risen steadily, reaching $2.09 trillion. The U.S. manufacturing workers’ average annual pay including benefits is slightly more than $77,000. Manufacturing output has grown 38% since 2009 and the sector accounts for 19% of the rise in real GDP since the recession ended.

Following nearly two decades of contraction in manufacturing facilities, government data shows that the number of establishments is growing for the first time since 1999 and that 87% of the job gains for manufacturing have been in the metalworking sector.

Manufacturing output and exports have surpassed their pre-recession peaks, and honing in on just the medical device manufacturing sector, numbers show that exports grew at a compound annual growth rate of 4.5% from 2008-2013, and the annual total reached $44.1 billion in the 12 months that ended in August 2014.

With all the positives seen in manufacturing, companies are still having trouble filling jobs, which can affect the pace at which they keep up with advancing technology and fill the growing backlog of orders. This is why the industry needs support from the government and industry partners.

Our elected officials need to remain supportive of the industry in order to keep it growing. So far they are, with President Obama’s National Network for Manufacturing Innovation plan of regional hubs for cutting-edge manufacturing technologies and his most recent commitment of $100 million to expand apprenticeships for American workers – but it doesn’t stop there.

Machine tool manufacturers, cutting tool suppliers, metrology providers, and everyone in between, need to continue working to find out what challenges are facing customers, or potential customers. Their manufacturing facilities are busy but facing the lack of skilled workers, so they are looking for a partner to bring them answers. They need to know what “tools” are available that will keep them ahead of the competition.

These are good times in manufacturing – our industry forecast has more in-depth information – and indicators all appear it will stay that way for quite some time. That’s a good thing.

– Elizabeth