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.

01/01/1998


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. 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, %*)

1997 1998

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





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...
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
World-class maintenance: The three keys to success - Deploy people, process and technology; 2016 Lubrication Guide; Why hydraulic systems get hot
Flexible offshore fire protection; Big Data's impact on operations; Bridging the skills gap; Identifying security risks
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical 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 article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me