The manufacturing industry has seen an upswing during the latter half of 2013, which is good news for both workers and company owners in the sector. Good manufacturing news this year primarily affected a handful of areas, including new orders, exports, and employment. Numbers released by the Institute for Supply Management during their monthly Report on Business indicate continued positive trends for 2014. This is great manufacturing news for workers and the industry as a whole.
The first of the three key areas reporting good manufacturing news is the area of new orders. New orders indicate new business being created by the economy as a whole, leading to additional work in the manufacturing sector. These orders may take quite some time to complete, giving manufacturing workers and company leaders additional income throughout the year. The new orders index for November of 2013 came in at 63.6 percent. This shows an increase of 3.0 percent over the numbers for October 2013. Growth in new orders has continued for the past six months.
Exports represent another area with good manufacturing news according to the Report on Business. Strong exports indicate that people throughout the world are helping fuel the American manufacturing economy. The exports index in the ISM report showed growth by 2.5 percent between October and November of 2013, leaving the latter month with an index level of 59.5 percent. Many congressional leaders have requested a focus on expanding high-tech manufacturing to help continue fuel growth in exports in the future.
Employment figures are a third area with good news this year. The employment index from the ISM showed a rating of 56.5 percent, landing it a full 3.3 percent points higher than October. Much like new orders, employment figures have increased for five consecutive months, showing increased hiring in the manufacturing sector. Anticipated increases in new orders during 2014 may well drive additional hiring in the months to come. These two areas are closely linked, and few manufacturing companies can afford to end up shorthanded when new orders arrive.
Manufacturing news continues to show signs of American companies slowly recovering from the recent recession. Continued increases in the areas of new orders, exports, and employment are likely to herald a strong year for manufacture if the trends set during the latter half of 2013 continue. The ISM and other organizations with a vested interest in manufacturing continue to report manufacturing news on a regular basis. These updates can help managers, owners, and workers make solid decisions about anticipated work and hiring rates.
(Photo courtesy of freedigitalphotos.net)
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