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There’s Nothing “hokie” About Virginia’s Manufacturing Economy

virginia manufacturing

Virginia has a lot to offer to a variety of manufacturing industries with the GDP of Virginia being $480 billion and manufacturing accounting for 8.95% of the total. Today, more than 4,560 manufacturing firms employ about 5.9% of the state’s workforce.

The Human Development Index of Virginia is 5.47 which indicates living conditions are considerably higher than the national average. Forbes ranked Virginia #6 as a Best State for Business.

Manufacturing Benefits

Six major interstate highways, more than ten commercial airports, 3400 miles of railway and 25+ international shipping lines from the Port of Virginia create easy and fast connections to 200+ countries from the state.

Virginia’s extremely low tax rate of 6% (which has not been amended since 1972) provides enormous benefits to businesses. The state also does not tax accounts receivable, computer software, inventory or other intangibles.

The average cost of electricity per commercial unit use is 6.44 cents, which is nearly 14% lower than the national average.

Virginia also has an enormously skilled and productive workforce available at affordable costs. Additionally, the right-to-work laws allow people to work irrespective of their membership in a labor union.

Manufacturing Industries

The food, beverage, and tobacco manufacturing industries accounted for $1.7 billion towards the state’s economy as recently as 2014. No other manufacturing sectors comes close to this massive revenue generation. Chemicals manufacturing nabs the second-best manufacturing sector in Virginia while rounding out the third spot is transportation equipment manufacturing which contributes $366 million to the state’s economy.

Agriculture Based Manufacturing

32% of Virginia consists of farmlands which are approximately 8.1 million acres. Over 44,000 farms produce a massive range of crops for exports as well as internal use. Namely, Virginia produces a lot of tomatoes, soy, tobacco, peanuts, hay, apples, potatoes, grapes, and cottonseed. Tobacco is one of the most important cash crops for the state.

The state of Virginia has a direct economic output of $25.9 billion from food & beverage manufacturing. This sector provides job opportunities to 11% of the state’s population, i.e. more than 35000 people. The average annual earnings of a manufacturing employee was estimated to be $70,882 in 2015. Since 2006, $1.9 billion has been invested by various food manufacturing companies in the state of Virginia, opening doors to 7000 more new jobs and setting new highs for revenue generation.

Beverage manufacturing takes the lead role in this industry with 219 firms. Tortilla and bread manufacturing ranks second with 174 companies. Food & beverage manufacturing consists of many large manufacturers like Pepsi Co., Hershey, McKee Foods, Kraft/Heinz and Lipton (Unilever).

Virginia’s manufacturing exports have consistently shown increases since 2009. The exports of manufactured goods contributed $13.94 billion towards Virginia’s economy in 2016. With a robust manufacturing economy fueled by growing exports of goods, it’s no wonder we included Virginia in our list of U.S Manufacturing States.

For information on a deburring machine to fit your manufacturing needs or a free evaluation, contact CDMC today via contact form or call us at (216) 472-0200 to speak directly with one of our experts!

 

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North Carolina’s Manufacturing Industry is Taking Flight

North Carolina Manufacturing

The first flight that gave us the wings to fly was the invention of two brothers in the state of North Carolina but now it’s the manufacturing industry’s turn to fly. While this is perhaps their most proud contribution, it doesn’t stop there. The state has seen various inventions that became household items for generations to come–Vicks Vaporub, the Barcode system or our beloved Coca-Cola. Like its invention history, North Carolina has a rich heritage in the manufacturing industry too.

Manufacturing Facts

Employing 10.6 percent of the total workforce, the manufacturing sector contributes around 20 percent of the state’s total revenue. Last year, the manufacturing industry generated a revenue of $100.07 billion. The average annual income of a manufacturing employee was $69,417. With 460,200 manufacturing employees, manufacturing is one of the most crucial income sources for the State.

When it comes to further classification of the state’s manufacturing arena, chemical products bag first place with an income or approximately $ 27,738 million. Food, beverage and tobacco products, along with computers & electronics come in second and third place with revenues of $18,839 & $9,855 million respectively. Other significant industries include machinery, transportation equipment & textile products.

Manufacturing Exports

In 2016,  the manufacturing sector contributed $28.06 billion through trade to the state’s economy. That same year, the Free trade Agreement (FTA) partners deposited $21.03 billion. Small businesses contributed to around 88 percent of total exports which demonstrate the underlying potential of  North Carolina’s manufacturing sector.

Chemical Products Manufacturing

Several major chemical companies such as BASF, DuPont, Bayer Crop Science, Procter & Gamble, and Clorox have pushed North Carolina to reach new heights. With an investment of $1.6 billion in chemical, plastics & pharmaceuticals manufacturing units, the state is planning to give a significant boost to this sector. After an 18 percent contribution by the chemicals and plastic industry to the state’s GDP from 2005 to 2014, there are around 993 firms in North Carolina, with over 75,000 jobs created. Today, the state stands as the 5th best industrial workforce across the country. It has a high growth rate of 1.5 which is well above the national average, with around 20,500 STEM degrees and certification courses conferred annually in the state.

Chemical Manufacturers Investment

Increased demand for DuPont’s Sorona means a big investment in North Carolina. By adding $30 million to its existing plant in Lenoir County in North Carolina, the company plans to extend its current capacity of 750 employees.  It’s the reason the Governor stated, “DuPont is North Carolina’s best-known employer.”

The major chemical company Albemarle, plans to invest $10.5 million over a period of the next five years and create 170-200 jobs. Impressed with the initiative, North Carolina Commerce Secretary Anthony M. Copeland said, “Albemarle Corporation is a global leader and has made the right decision to expand in North Carolina.”

The state that invented and manufactured airplanes also sustains the needs of society with basic household products. The North Carolina manufacturing sector improves the fabric of our country and is well-deserving to be on our list of the best manufacturing states in the nation.

For information on a deburring machine to fit your manufacturing needs or a free evaluation, contact CDMC today via contact form or call us at (216) 472-0200 to speak directly with one of our experts!

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Manufacturing Investment in Georgia is as Ripe as The Peaches

Georgia Manufacturing

The State of Georgia is known for many things. It’s one the original 13 colonies, is the state with “Seven Natural Wonders”, has the first college for women in the U.S., and 18 Fortune 500 companies call the state home. But of most interest to us, is that a major portion of the state’s GDP is contributed to by the manufacturing industry.

Manufacturing Statistics

The manufacturing industry contributes to 11.1% of the total output in the state, by employing 8.8% of the workforce. Total contribution in Georgia’s GDP was $54.82 billion in 2015. In addition, the manufacturing sector employed 373,700 people in 2015, with an average annual income of $67,365. The top three manufacturing industries in Georgia include food beverages & tobacco products, bringing in the substantial amount of $11 million. The transportation equipment & chemical industries boost the GDP by $9 million which means the economy benefits greatly from manufacturing with roughly $35.60 billion worth of goods exported to foreign countries from Georgia in 2015. In other words, exports from the manufacturing sector were 92.3% of the total exports of the state and helped Georgia to create around 21.3% of employment, or 209,071 people.

Automotive Industry

The automotive industry operates 250 facilities throughout Georgia while employing more than 18,000 workers. More than $9.5 billion worth of automotive exports is shipped through Georgia’s ports. Automotive manufacturing employment in Georgia is expected to grow by 11.9% by 2020 while vehicle body & trailer manufacturing are also projected to expand by 8.5%, with parts expected to increase by 8.1% respectively.

Automotive Investment

Mercedes Benz, the automobile luxury giant is planning to invest $74 million into Atlanta by moving its’ main office to the state. This move will generate at least 800 more jobs for Georgia.

The leading manufacturer of golf carts, Textron Specialized Vehicles Inc, is investing more than $40 million to build a new facility in Augusta. This investment will increase employment by 400 people in the state. The company markets its products under the E-Z-GO®, Cushman®, Bad Boy®, TUG™ and Douglas™ brands. The company currently employs more than 1,000 people in Georgia and has experienced an average annual workforce growth of more than 13% since 2010.

Porsche will assist in boosting the state’s superiority as an automotive giant even further by investing more than $100 million, when it shifts its’ headquarters to Atlanta. The huge 26.4-acre complex is going to need more than 400 new workers to staff.

A major chunk of the state’s workforce consists of employment from the automotive industry as we’ve detailed. Georgia is ninth in the nation for manufacturing. With giant automotive companies like Mercedes, Porsche, Honda, & Kia. Motors investing heavily in the state, employment in the automotive sector is getting a huge boost. With investment from the automotive industry, Georgia is ensuring maximum employment, driving its economy, and pushing the limits as a real contender in the nation’s economy.

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