Manufacturing Numbers Boost Economic Outlook

The glory days of the American manufacturing industry may be over in the traditional sense, but perhaps there is a silver lining. Recent positive numbers may indicate industry recovery and movement toward a largely tech-based manufacturing sector. An increase in the number of exports and a gradual rise in available manufacturing jobs all point toward rejuvenation. Is the United States heading toward a manufacturing resurgence, or do the latest encouraging figures tell a different story?

Once upon a time, the U.S. manufacturing industry was the biggest source of jobs in the entire country's economy. In 1990, the manufacturing industry counted itself as the primary employer for residents in more than 30 states; in 2013, it held the title in less than a third of that number. Now, the manufacturing industry is top of the jobs list in a mere seven states, including Wisconsin, Mississippi, Iowa and Alabama.

Because of its status as an employment behemoth, the state of the manufacturing industry affects the U.S. economy in several major ways. When the production sector began to decline in the early part of the 21st century, the American economy suffered as well. A dwindling number of new manufacturing jobs compounded the mass layoffs in many states as companies chose to shift production processes overseas. Unemployed and worried, many individuals cut their spending habits.

Recently, U.S. lawmakers and businesses began to work together in earnest at both state and federal levels to boost the U.S. manufacturing industry. In Florida, for example, port upgrades and repairs, freight mobility plans, and sales tax initiatives were implemented to nurture the recovering manufacturing industry. These measures seem to have had an effect; manufactured goods exports totaled a healthy 76 percent of Florida's exports in May 2014.

Other initiatives proposed or put into action in 2014 include the manufacturing hub announced by President Obama during the first quarter. The Revitalize American Manufacturing and Innovation (RAMI) Act, proposed by Congressman Tom Reid in February 2014, reached the House Science Committee for consideration in July and passed through Congress in August.

Naturally, the potential manufacturing resurgence in America has also been driven by factors outside the country. The global recession is now in the rearview mirror for most countries, and demand for American-made goods is up. The more international orders received by the manufacturing industry as a whole, the more lively it becomes.

The latest manufacturing industry figures certainly seem to indicate an upward trend. They're perhaps somewhat contrived, simply because of the active push toward success in 2014; however, that is encouraging in itself. If large American corporations and the government continue to collaborate successfully, this year could mark the beginning of another solid era for the U.S. manufacturing industry and the country's economy as a whole.

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