MAPI — Manufacturers Alliance News and Reports — U.S. Industrial Outlook and More

Issues in the Brief

The New Normal Is Modest Growth
Last month, Dan Meckstroth presented at the Industry & Economic Outlook Conference hosted by the National Fluid Power Association. He focused his presentation on the global manufacturing trends that are important to manufacturers. Here are some highlights from his presentation.

A Wider Panama Canal Adds to U.S. Investment
You’ve heard about the impact of the wider Panama Canal on shipping volumes, changed routes, and shorter transit times. But there’s also the added rush in investment in U.S. infrastructure on the East Coast to accommodate the heavier shipping volumes.

The Disappointing Truth About Diversity and Inclusion for U.S. Manufacturers
Even though two-thirds of surveyed U.S. manufacturers have focused on recruiting and retaining women and/or minorities for a number of years, these strategies have not improved diversity in the sector.

In the Global Outlook, the Only Constant Is Change
In his August webinar on the global outlook, Cliff Waldman opened by noting that during this century, the changes in the global economic picture have been the most consequential since Bretton Woods, with new powers, dramatic crises, and constant change. The bottom line in the outlook is that we’re still in a slow-growth world, one struggling to adjust to post-recession dynamics.

Economic Update

How Important Is U.S. Manufacturing Today?
Manufactured goods are ubiquitous at home, in transit, and at work, but the narrow definition of manufacturing industries in national statistics implies that the sector is of only minor importance to economic activity. The traditional finding is that manufacturers’ proportion of gross domestic product (GDP) is only about 11% and manufacturing’s share of economy-wide full-time equivalent employment is just 9%.

U.S. Industrial Outlook: Growth Acceleration Is Around the Corner
Manufacturing industrial production was essentially unchanged in the first quarter of 2016 and then fell at a 1% annual rate in the second quarter. July production grew at a 6% annual rate, so the third quarter is off to a good start. The strong July begs the question of whether the month’s growth was a fluke.