Tag Archives: U.S. Manufacturing

The Manufacturing Industry has Reason to be Optimistic in the New Year

manufacturing new yearThe manufacturing industry is kicking off the New Year with cautious optimism. The GDP is expected to remain within the 2 to 3 percent range with a 2.5 percent increase in 2019 and 2.6 percent industry growth. 2019 is also the ninth year of economic expansion, the second longest in U.S. history, according to William Strauss, senior economist and economic adviser for the Federal Reserve Bank of Chicago.

The pace predicted for the manufacturing industry in 2019 is somewhat faster than that of other segments in the general economy with sales and revenue expected to grow. Part of this increase can be attributed to the health of the industry and an improving competitive position for the U.S. in the global manufacturing market, according to FABTECH, an exhibiting company that showcases what’s new in metal forming, welding, finishing and fabricating.

Not surprisingly, the industry’s top priorities haven’t deviated much from those of the past five years. Industry leaders, tasked with orders from boards and shareholders, will continue to look for ways to grow sales, cut costs and address talent gaps. What is new is a greater emphasis on the use of digital technologies to improve business and a changing focus on teaming artificial intelligence (AI) and the human element of business. Leaders surveyed in KPMG’s 8th edition of the Global Manufacturing Outlook report stressed the importance of looking at AI as a partnership with human intelligence. The blend of AI and the human element will put an increased focus on the need for extensive retraining and educating workers on new roles.

Impact of AI on Workforce

64% say it will create more jobs than it eliminates

36% say it will eliminate more jobs than it creates

Building Partnerships

Such an approach will require new partnerships that extend inside and outside the industry. Manufacturers will need to continue to look for ways to build up a pipeline for new workers. This will be necessary as more Baby Boomers retire from the industry, leaving an information drain that could be difficult to replace.

Companies will also need to build and maintain strong supply chain partnerships on more than a handshake and prior contracts. KPMG stressed that with the threat of cyber security it will be more important for a business to know who they are considering a partnership with. The safety of a company’s data will only be as secure as those connected to the data throughout the supply chain. This includes the use of intrusion detection and a firewall to protect the perimeter from outside attack, secure communications through a VPN or SSL, increased securing measures using intrusion-detection software and network elements and upgraded monitoring systems.

Other Possible Obstacles to Growth

Higher inflation

More stringent immigration policies

Tariffs impacting trade protectionism

NAFTA uncertainty

Rising borrowing costs

By applying a mindset of digital and embracing the human element of business, the manufacturing industry can continue to adapt to customer needs in a changing competitor landscape.

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Let’s All Come Together to Celebrate Manufacturing Day 2018

MFG Day

Those who work in manufacturing understand continuing education is critical to demonstrate the career opportunities available as traditional manufacturing processes merge with technology. Yet, misconceptions about working in the industry persist. To combat these false ideas, those in manufacturing are offering individuals outside of the industry a personal look at what manufacturing means today.

 

National Manufacturing Day

Although National Manufacturing Day officially falls on October 5th this year, those who make their living in manufacturing understand it to be something worth celebrating each day. The first Manufacturing Day was started as an opportunity to highlight the positive elements of the industry to others and to dispel misconceptions. In October of 2014, President Obama signed a proclamation making National Manufacturing Day an official day recognizing the benefits and achievements of the manufacturing industry.

Inside View

Because of annual Manufacturing Day events, students and job seekers in the United States, have an opportunity to see the inner workings of the industry through factory tours, hands-on demonstrations and career-exploration panels. These efforts offer the next generation of workers and students an introduction to the current manufacturing environment.

In fact, 64 percent of students surveyed after attending a 2016 Manufacturing Day event came away feeling motivated to consider a career in manufacturing. Deloitte’s survey results show a potential 171,000 new members could join the workforce because of improved perceptions regarding the modernization of the manufacturing industry. This is an important step in filling the estimated 3.5 million manufacturing jobs between now and 2025, according to Deloitte.

Manufacturing Day also unites manufacturers in the U.S. in efforts to improve the public image of manufacturing, mend the skills gap and boost ongoing prosperity for the industry at large. During the month of October, manufacturers come together to address the industry’s collective challenges and to define the framework for the manufacturing industry moving forward.

Looking Forward

Officially celebrated the first Friday in October, this year’s occasion falls on Oct. 5 with additional events occurring throughout the month. During this time, manufacturers across the nation will showcase new industry technologies as they open the doors for factory tours, welcoming those outside of the industry to view manufacturing first-hand. To date, there are 387 Manufacturing Day events scheduled in the U.S. with 43 public and invitation-only events planned in Ohio.

Growth of the annual celebration is the result of ongoing efforts from the National Association of Manufacturers (NAM), the Manufacturing Institute (MI) and the National Institute of Standards and Technology’s (NIST) Hollings Manufacturing Extension Partnership (MEP). NAM produces the annual event with support from the MI and MEP.

This article is 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 and speak with one of our experts!

 

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Manufacturing Industry Records Eighth Month of Job Growth

U.S. Manufacturing Industry

The first half of 2018 is off to a positive start with continued growth in the manufacturing sector. Recent statistics from the Bureau of Labor reported an additional 18,000 jobs added within the industry. During the month of May, this equated into 12.673 million jobs, just slightly higher than the 12.655 million jobs reported in April. Many of these new jobs come from durable goods manufacturing.

Compared to a year ago when May 2017 numbers were at 12.414, this demonstrates a positive lift. Other economic areas such as the non-farm sector continue to show increases with 223,000 new jobs reported during the month of May, better than the 188,000 jobs economists predicted during this time frame. Retail trade (31,000 jobs), health care (29,000 jobs), and construction (25,000 jobs) also saw increased growth, and the unemployment rate moved to 3.8 percent, according to the June 1 economic news release from the Bureau of Labor Statistics.

Areas of New Job Creation

Machinery manufacturers – 5,800 new jobs

Fabricated metal products – 2,400 new jobs

Wood products – 1,300 new jobs

Industry Downturn

One area of the industry not experiencing the same level of growth is within the motorized vehicle and parts industry. 4,400 manufacturing jobs were lost during the month of May in this sector. Traditionally, this area, which includes trucks, cars and other vehicles, has been one of the more robust in the industry. The once-top job creator continues to experience a dip as more automotive buyers switch their preference from cars to larger-size SUVs and trucks.

Despite this slump, the sector still experienced an overall gain of 1,400 jobs, and automotive dealers point out the benefits of better-quality automobiles produced by leaner plants. Another bright side is SUVs and trucks have a larger price tag than most cars. Automotive industry insiders anticipate that larger profits from the production of SUVs and trucks will make it easier for automotive plants to make production changes, hopefully decreasing the need for large layoffs. Another positive is that automotive producers now react to changes in consumer desires quicker than they did in the past.

Slow Yet Steady

Nimbleness in manufacturing methods and changes in U.S. trade policy offer two examples of how the manufacturing industry continues to rebound from the 2008 financial crisis and recession. As economic conditions continue to improve, the industry shows steady, yet slow, growth with hiring continuing throughout much of the industry. A desire for products made in the U.S. also helps justify new jobs and an increasing workforce to meet growing demand. But the continuation of such trends remains to be seen with the possibility of an upcoming trade war, according to a news report from Manufacturing Talk Radio.

This article brought to you by the Cleveland Deburring Machine Company.

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