Forecast: manufacturing growth to remain sluggish

The National Association of Manufacturers’ 2008 Economic Forecast released Wednesday points to, “a recession being averted, but a significant deceleration in GDP growth through the first half of this year due to surging energy prices and a slowdown in corporate profits that will hold down business spending.”


The National Association of Manufacturers ’ 2008 Economic Forecast released Wednesday points to, “a recession being averted, but a significant deceleration in GDP growth through the first half of this year due to surging energy prices and a slowdown in corporate profits that will hold down business spending.”
David Huether, NAM chief economist and author of the report, sees GDP growing by just 1.4% in the first half of this year after slowing from 4.9% in the third quarter of 2007 to just 2% in the fourth quarter.
“The ripple effect of the housing downturn and a slowdown in motor vehicle production has caused a significant hit to the overall manufacturing economy,” Huether said. “While these sectors shed 125,000 jobs and saw output decline by 2.4% last year, the remaining sectors picked up 18,000 jobs and output rose by 2.7%.”
Overall manufacturing output edged up by just 1.8% in 2007 %%MDASSML%% its slowest pace in four years %%MDASSML%% and is expected to continue at 1.9% in 2008, according to the report. Manufacturing employment is currently forecast to drop by 90,000 in the coming year.
“The best way create jobs is to jump start business investment with an enhanced capital-cost recovery system,” said Dorothy Coleman, the NAM’s vice president for tax and domestic economic policy. “The NAM is advocating a package of tax relief proposals geared toward economic growth. As we saw in 2003, a pro-business investment growth package can make a real difference.”
The NAM’s tax relief proposals include a 50% bonus depreciation provision for business investment. According to the report, this would nearly double the growth of business investment this year resulting in a half-percentage point added to GDP growth, faster manufacturing output and an additional 112,000 manufacturing workers by the end of this year.
The report is available at:

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Safer human-robot collaboration; 2017 Maintenance Survey; Digital Training; Converting your lighting system
IIoT grows up; Six ways to lower IIoT costs; Six mobile safety strategies; 2017 Salary Survey
2016 Top Plant; 2016 Best Practices on manufacturing progress, efficiency, safety
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
What controller fits your application; Permanent magnet motors; Chemical manufacturer tames alarm management; Taking steps in a new direction
Commissioning electrical systems; Designing emergency and standby generator systems; Paralleling switchgear generator systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

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.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Motion control advances and solutions can help with machine control, automated control on assembly lines, integration of robotics and automation, and machine safety.
This article collection contains several articles on creating and enhancing a safe workplace in manufacturing.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
click me