From SCDigest's On-Target E-Magazine
April 13, 2011
Supply Chain News: US Manufacturing Looking Strong Generally, but Prospects Vary Substantially by Industry, New MAPI Research Report Says
Growth Projections in Pictures; Forecasts for 24 Industrial Sectors
SCDigest Editorial Staff
SCDigest Says: |
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| The data was compiled before sum of the recent run-up in oil and some commodity costs, however, which could put some damper on predicted consumer and business spending. Still, all told, this is a bullish outlook.. |
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What Do You Say?
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The MAPI/Manufacturing Alliance has substantially upgraded its projections for US manufacturing growth this year in its most recent quarterly US Industrial Outlook Report, released in late March.
The report, authored as usual by Daniel Meckstroth, MAPI Chief Economist and Director of Economic Research, says that " Consumer spending for goods will increase at a faster rate and expensing for business equipment will particularly expand high tech business investment.
All told, that means US manufacturing production is predicted to increase 5.5 percent in 2011, up from a forecast for a 4 percent rise in the previous quarterly report.
MAPI also forecasts that manufacturing production will increase 4.5 percent in 2012. At that pace, manufacturing production will finally exceed the December 2007 pre-recession high in late summer 2012.
MAPI expects high-tech production will expand 14 percent in 2011 and 15 percent in 2012. However, non-high-tech or traditional manufacturing, which accounts for 90 percent of manufacturing value-added, is expected to grow 4 percent in both 2011 and 2012. (See graphic below).
A rise in export volumes is helping. MAPI says exports inflation-adjusted export growth of 8 percent in 2011 and 9 percent in 2012, though we will note import volumes are rising even faster.
(Manufacturing article continued below)
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