Posts Tagged ‘Manufacturing’

Manufacturing forecast: Sunny days ahead

April 12th, 2013
By: Dan Davis

Is current economic news making you unenthusiastic about the rest of this year and 2014? The editors at The Kiplinger Letter say not to fret. Manufacturing's future in the U.S. appears to be pretty good in the near term.

In the early April newsletter, editors suggested that, even though manufacturing may appear to be losing some of its momentum this year, it will continue to be a strong driver of growth during this "feeble" economic expansion.  Manufacturing growth is expected to be 2.2 percent in 2013, just a little higher than the forecast GDP growth of 2 percent, but could be greater if public pressure forces lawmakers to moderate the effects of budget cuts related to the federal sequester. In 2014 manufacturing growth could hit 3.5 percent. In fact, manufacturing production levels should reach 2007 levels in 2014.

To dig deeper into the forecast, The FABRICATOR talked with Karen Mracek, a Kiplinger Letter associate editor. (more...)

American business success: Optimism peppered with pragmatism

March 19th, 2013
By: Tim Heston

So said Don McNeeley, president and COO, Chicago Tube & Iron Co., and professor at Northwestern University, speaking Feb. 27 at The FABRICATOR’s Leadership Summit in Palm Harbor, Fla.

After conversations with various fabricators since then, most tend to agree with him. Business is OK, not great, but big things may be on the horizon. One attendee said she was working through a massive pile of request-for-quotes and was wondering how she was going to get through them all. That’s not a bad problem to have. The recession purged many local markets, and fabricators that performed poorly (or were just unlucky) fell by the wayside. Now OEMs and top tier suppliers are calling on top-performing fabricators to deliver the goods.

Meanwhile, before this week’s troubles thanks to the mess in Cyprus, the stock market pushed into uncharted territory.

“The markets are nuts.”

(more...)

News you can use

March 8th, 2013
By: Dan Davis

Last week more than 100 metal fabricators gathered for The FABRICATOR's Leadership Summit in Palm Harbor, Fla. The conference attendees seemed optimistic as most are in the midst of coping with expanding business opportunities.

But with such pressures come concerns. Everyone apparently is looking out of the corners of their eyes in hopes that they can see what challenges are coming next. Uncertainly still abounds.

Fortunately, the conference provided metal fabricators a chance to absorb some expert observations. FMA economic analyst Dr. Chris Kuehl and Donald McNeeley, president and COO, Chicago Tube & Iron Co., and professor at Northwestern University, took the stage the afternoon of Feb. 27 to talk about current business conditions. Some of the insights were noteworthy:

  • Kuehl works with the National Association of Credit Management to put together the Credit Managers' Index (CMI), which is similar in structure to the PMI, the prominent index used to gauge the health of the manufacturing industry. The CMI, however, is more forwar-looking as it's based on credit applications, the step needed before any type of uptick in manufacturing activity occurs. Kuehl reported that more credit applications have been submitted and approved the last three months than in the last two years combined. The money has been there to lend, but only now are lending institutions and borrowers connecting to put the funds to use. (more...)

Another training option

December 5th, 2012
By: Vicki Bell

Last week I wrote about vocational training—how programs that were being decimated a decade ago are seeing a strong comeback with even stronger participation. Many are adding classes to accommodate waiting lists.

While music to manufacturers’ ears, this training alone likely will not be enough to make up for the huge deficit of skilled workers, at least not in a timely manner. Some companies are turning to something that once was the principal means by which craft workers learned their trades but now plays a relatively small part in the U.S.—apprenticeships. (more...)

Letter to the President

November 7th, 2012
By: Vicki Bell

Dear President Obama:

Congratulations on your reelection. Although I did not vote for you, I sincerely wish you the best of luck and fervently hope that you are able to work with our gridlocked Congress to enact measures that will help our economy. Frankly, I am discouraged by the past four years, and I don’t believe our country can take four more years of the same.

Today, nbcnews.com ran a post-election piece entitled “Now that he’s won, the six splitting headaches waiting for Obama”: Automatic spending cuts; taxes going up, by a significant amount—and not just on the rich; debt limit; confirmation of pivotal Cabinet members (replacements for Tim Geithner and Hillary Clinton) and regulatory chiefs; implementing the Affordable Care Act and appointing the members of the Independent Payment Advisory Board; and chaos in Syria, WMD—and don’t forget Iran.

And then there’s the small matter of the economy, supposedly the No. 1 concern among voters in this election. (more...)

Crazy to think things are getting better?

August 10th, 2012
By: Dan Davis

Positive thinkers make me nervous, and motivational speakers make me roll my eyes. I'm a self-motivated individual who has a clear understanding of the reality around him. I believe in the ability to scale mountains, but those that believe they can move them through sheer will deserve to have Tony Robbins take their $350 in exchange for an autographed book and an afternoon of self-help babble.

So back in 2008 I laughed as manufacturers tried to convince me that the media was causing the economic downturn initiated by the collapse of the real estate market. So if everyone had ignored the facts around them, the economy magically would have improved overnight? Reality wasn't going to cooperate. (more...)

Will Olympic uniform outrage be the catalyst for change?

July 19th, 2012
By: Vicki Bell

By now, the U.S. Olympic CommitteeRalph Lauren, and you probably have heard much about the U.S. Olympic athletes’ official uniforms, and I don’t mean their style. A July 12 report on the ABC program World News Tonight featured a look at the uniforms designed by Ralph Lauren and made—head-to-toe—in China.

Most of the feedback to the online report on abcnews.go.com was negative. So was the feedback from “Stamping News Brief” subscribers responding to the last week’s newsletter that featured the ABC report. (more...)

'Reasons to push jobs overseas are starting to fall apart'

May 30th, 2012
By: Vicki Bell

News website headlines, such as those on msnbc.com today, battle each other for my attention. While I'm fascinated by the six-year-old spelling prodigy Lori Ann Madison, the youngest speller ever in the National Spelling Bee, reading her story had to wait until I read the one under the headline "China slowdown threatens US factory revival." The article by Economics Reporter John W. Schoen describes a catch 22—what looks like it could be a panacea for U.S. manufacturing job loss may actually exacerbate our economic woes. (more...)

Manufacturing on the rise; pay not so much

April 20th, 2012
By: Dan Davis

Leave it to the guys at Yale University to screw up a simple headline.

I came across this article--"U.S. Battle to Revive Manufacturing—Part I" in YaleGlobal Online Magazine—but really didn't get sucked into it until I read the subhead "Job growth urged by U.S. presidential candidates may not support high standard of living." Now that's burying the main point.

(more...)

Addressing the "moral imperative"

April 5th, 2012
By: Dan Davis

Have you read Senior Editor Tim Heston's most recent blog post? If not, you should.

In the blog post, Heston discussed recent media coverage of Apple reported the multimedia gadget maker can't make products in the U.S. because the workforce isn't flexible enough to respond to fickle consumer demand. Toward the end, Heston stated: "I’d say it’s a moral imperative that we again build our U.S. manufacturing infrastructure so we can respond to companies like Apple, with skilled workers and automation."

I don't think the issue can be stated any more clearly. It's time for the U.S. to put the iPhone down, get off the couch, and make a better future for itself.

I could go into the list of reasons that manufacturing is important, but I'll let Jerry Jasinowski, the former president of the National Association of Manufacturers, address the points in this recent editorial. Simply put, manufacturing is a wealth creator that other segments of the economy simply can't match.

Hopefully, people are getting the message, especially knowing that manufacturing continues to lead this slow economic recovery. Job creation is also increasing, with small and medium-sized companies accounting for 89 percent of the 209,000 new workers in March, according to payroll processor Automatic Data Processing.

Where does it start? I'd argue that it already has with the new focus on vocational skill development in community colleges. Unfortunately, the new talent isn't being educated fast enough for many manufacturers, but help is on the way in some areas of the U.S.

How does it continue? There are numerous places to start: tax reform, regulatory relief, and supportive legislative action.

Yes, the U.S. economy is still a consumer-driven entity. Yes, manufacturing as a percentage of the U.S. gross domestic product will continue to shrink—just as agriculture has over the years—as fewer workers are needed to produce the same or more amount of goods. Those are facts that cause some pundits to frown on any special treatment given to manufacturers.

I'd say look at other facts. The unemployment rate is still higher than 8 percent. The average age of a manufacturing worker is late 50, and although they may be working longer to add to their retirement coffers, they soon will be walking out the door. Jobs are available and will be available for some time.

We have a moral imperative to support our neighbors who are looking to rebuild their lives after the tumultuous events of the past five years. We can do that by supporting manufacturing.