Manufacturers Waiting for the Predicted Boost

The US manufacturing industry has had a tough five years, to say the least. Because the American manufacturing industry is tied into every other part of the economy, from construction to candy, when the housing bubble burst in late 2007, other companies' bad investment choices sent the global market into a tailspin, and manufacturing was hit hard. Now, however, the global economy is on the road to recovery, and some experts assert that a production boom is on the way. But where is it, and how profound is it likely to be?

The answer may be found in other sectors, particularly in recent months. When the mortgage crisis struck, it took every other part of the US economy down with it. Conversely, as the housing market and the construction sector recover, other segments of the economy are being underpinned once again and are reviving.

So the manufacturing industry will inevitably reap the benefits of escalating business in other sectors. As new construction projects take off, builders need parts and supplies, including iron girders, bricks, mortar, sand, slate, and other materials. That's good news for mining operations, particularly those in Minnesota and other parts of the Midwest in which silica sand is a natural resource.

As overseas markets recover from the global downturn, they in turn will have an impact on the US manufacturing industry. Manufacturing growth is likely to follow Europe's ascent out of its own housing crisis; as European money becomes available to purchase imported goods, the US export industry will gradually recover. In turn, US production is likely to soar.

Another manufacturing growth factor is consumer opinion. After the turn of this century, many mainland production companies turned to foreign-made parts and goods to fulfill US consumer needs. In the early 2000s, the American economy was much stronger than it is now, which gave US consumers greater buying power. The lure of foreign-made goods had a lot to do with high demand as well as reduced overhead costs.

Now, however, the American people want to see growth at home. As a result, consumer pressure for American-made goods has mounted to such an extent that large corporations like Walmart have pledged to buy more American-made goods. In fact, recent email campaigns for Walmart, Home Depot, Menards, and other retailers have featured American-made products as a selling point.

The reshoring movement and the growth of the economy as a whole have infused the manufacturing industry with new life. At this stage, it is safe to say that going forward, the manufacturing industry will indeed see a boom. The real question is how fast it will happen and how high it will go.

(Photo courtesy of Freedigitalphotos.net)