Slower manufacturing production expected in 1998
Growth in the manufacturing sector will slow in 1998, but most industries will still record solid output gains. As the year progresses, inventories will accumulate a bit more as growth in new orders and export demand weakens.
Growth in the manufacturing sector will slow in 1998, but most industries will still record solid output gains. As the year progresses, inventories will accumulate a bit more as growth in new orders and export demand weakens. Most of the specific industry sectors that will grow at well-above-average rates are "high tech" in nature -- computers, aircraft, electronic components, communication equipment, etc.
American manufacturing has enjoyed a full renaissance this decade, largely on the strength of the dramatic surge in capital investment since 1992. Long-term captial investments in productivity enhancing, efficiency-improving equipment and buildings have led to a sharp improvement in global competitiveness. And, for most sectors, the business investments that were made during the past 5 yr should allow productivity and production gains to continue unabated through the balance of this century.
Industrial production in manufacturing has grown solidly since the last recession ended in the spring of 1991. Annual growth for this cycle peaked in 1994, with an overall manufacturing output gain of 5.5%. Following more subdued growth in 1995 and 1996, preliminary estimates show that overall industrial production increased by about 5.1% in 1997. In 1998, production will continue to outpace the overall economy with a 3.4% gain.
Key manufacturing market indicators(Annual change, %*)
Industrial production 5.1 3.4
Shipments 5.5 4.1
Inventories 3.1 3.2
New orders 5.2 3.8
Employment 0.2 -0.9
*1997 estimated; 1998 forecasted by Reed Elsevier Business Economics
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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