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 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...
Hannover Messe 2016: Taking hold of the future - Partner Country status spotlights U.S. manufacturing; Honoring manufacturing excellence: The 2015 Product of the Year Winners
Inside IIoT: How technology, strategy can improve your operation; Dry media or web scrubber?; Six steps to design a PM program
World-class manufacturing: A recipe for success: Finding the right mix for a salad dressing line; 2015 Salary Survey: Manufacturing slump dims enthusiasm
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
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
Warehouse winter comfort: The HTHV solution; Cooling with natural gas; Plastics industry booming
Managing automation upgrades, retrofits; Making technical, business sense; Ensuring network cyber security
Designing generator systems; Using online commissioning tools; Selective coordination best practices

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.
click me