Tennessee report sees positive signs in manufacturing economy

Auto growth, housing increases signal a stronger outlook, researchers find

06/05/2013


Falling unemployment rates, an increase in vehicle sales and a long-awaited rebound in the residential housing market are all indications that the national and state economies are making a comeback.

Despite sequestration of federal spending and a payroll tax increase that have slowed consumer spending, the economy is poised for strong growth in both 2014 and 2015, according to the spring 2013 Tennessee Business and Economic Outlook.

The study, prepared by the Center for Business and Economic Research (CBER) at the University of Tennessee, predicts the trajectory of the state and national economies by examining many economic and fiscal factors and trends.

"The economy has finally found a firm footing," said Matt Murray, CBER associate director and the report's author. "This will be the third year of payroll employment growth and a falling unemployment rate following the Great Recession."

The national unemployment rate dropped to 7.7% in first quarter of the year and is expected to average 7.6% this year, compared to 7.8% in 2012. It is predicted to fall to 7.2% in 2014.

Additionally, payroll employment for the nation is projected to be up 1.5% this year and 1.6% next year, according to the report.

"These modest employment gains will help support modest reductions in the unemployment rate," Murray said.

Vehicle sales are inching closer to pre-recession levels, according to the report. They bottomed out at 10.4 million vehicle sales in 2009 but are rebounding. Sales are expected to total 15.3 million vehicles this year and 15.7 million next year. By 2016, sales will likely be restored to the levels that prevailed in 2006.

The nation's manufacturing sector is expected to continue to see job gains as well.

Tennessee's economy improved in recent quarters, notably in its unemployment rate. The state unemployment rate is projected to average 7.8 percent this year compared to 8.0 percent last year. It is expected to fall to 7.5 percent in 2014, according to the report.

Tennessee outperformed the United States in many measures, and the state's manufacturing sector employment growth in the first quarter was more than twice as large as the growth recorded for the nation.

Manufacturing will see employment growth continue into 2015. Jobs in the state's industrial sector will be up 1.6% this year and next year. Employment losses will continue to take place in nondurable goods manufacturing.

Read the entire report



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Leaders Under 40 program features outstanding young people who are making a difference in manufacturing. View the 2013 Leaders here.
The new control room: It's got all the bells and whistles - and alarms, too; Remote maintenance; Specifying VFDs
2014 forecast issue: To serve and to manufacture - Veterans will bring skill and discipline to the plant floor if we can find a way to get them there.
2013 Top Plant: Lincoln Electric Company, Cleveland, Ohio
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Bring focus to PLC programming: 5 things to avoid in putting your system together; Managing the DCS upgrade; PLM upgrade: a step-by-step approach
Balancing the bagging triangle; PID tuning improves process efficiency; Standardizing control room HMIs
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.