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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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Germany Faces Economic Manufacturing Challenges

German manufacturing

Since the Industrial Revolution about 200 years ago, the Germans have been an international manufacturing powerhouse. They have it all covered from cars to pharmaceuticals; the manufacturing industry here has always been on top. Like most of the global economy, Germany suffered a drop after 2008 and has been steadily recovering since. Of course, their bounce back has been paved with many obstacles but none larger than the ones they have today.

In general, Germany’s economy has seen a slow and delicate shift. Its workers have increasingly transitioned from manufacturing jobs to the services industry. This shift is marked by the incoming new generations and their labor market decisions. Recent studies suggest that manufacturing has a slow and steady decline in Germany, but it is not as devastating as the American offshoring wave.

These shifts in the German economy may have led up to the 3% drop in PMI reported in January. This comes after a nearly 6 year rise in PMI indicators for Germany, and is somewhat alarming for the manufacturing industry. While most senior economists aren’t at all too concerned with the fall of the PMI, there might be some up and coming changes that could affect the manufacturing industry in general. Most of this change in PMI is attributed to the fact that unemployment in Germany also grew. But, it appears there might be bigger fish to fry for the German manufacturing industry.

The biggest challenge coming to the German manufacturing industry is led by political initiatives. Under the new administration, American economic protectionism is starting to look like the ruling ideology. The US administration does not show a promising picture of future economic trade with Germany. And this of course could damage the German manufacturing industry. BMW, who has their biggest manufacturing plant located in South Carolina, held meetings and tried to lobby the administration into seeing the benefits of open-trade with Germany. Americans have been buying German products for decades, and any loss of the 115 billion dollars a year profits that German companies make from Americans could be devastating to their manufacturing industry.

These challenges are compounded with the shifting of the European economic market, the failures of the European Union to uphold political stability, and the coming Brexit. German economic markets will have to adapt their policies, and hope that the promises of protectionism from the current administration don’t come to light.

This article brought to you by The Cleveland Deburring Machine Company. CDMC can provide a deburring solution for gears, sprockets, aerospace and defense, automotive deburring, power transmission, powdered metals, fluid power and custom deburring applications. Our no-charge application evaluation includes a detailed report and process description in as little as 3 to 5 business days. Contact CDMC today for a deburring machine that’s right for you.

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