Three different economic studies pointing to manufacturing orders, employment and exports suggest an improvement in the manufacturing sector for 2013.
A Minnesota study shows the state has rebounded from a rough economy by adding more than 9,000 jobs, and an Ohio regional impact study reports that manufacturing has improved, accounting for $5.6 billion in annual payroll and nearly 20 percent of the total payroll within the 14-county Dayton region.
“Now that Congress has come to an agreement that will limit 2013 tax increases and renewed the accelerated depreciation tax credit, we expect that new orders and overall activity in the sector will accelerate,” said Ward McCarthy, Jefferies & Co. managing director and chief financial economist.
The Institute for Supply Management, a non-profit organization tasked to lead and serve the supply management profession, reported the strength of manufacturing was 50.7 percent on the group’s scale in December. That is a 1.2 percent increase from ISM’s November report.
According to ISM, a score below 50 percent signifies the manufacturing economy is in a reduction stage.
The United States economy is the world’s largest manufacturing economy. The country produces 18.2 percent of global manufactured products, according to the World Bank. China ranks second. The U.S. manufacturing economy produces $1.8 trillion of value each year, which equates to 12.2 percent of U.S. GDP.
According to the National Association of Manufacturing’s 2011 statistics, Missouri’s manufacturing output is $31.9 billion. Manufacturing employment is 247,400, with an average salary of $62,311. Eighty-nine percent of Missouri’s exports come from manufactured goods. Those exports come vastly from small businesses (85.3 percent).
“Missouri’s economy greatly depends on manufacturing, especially military manufacturing,” said Ray McCarty, president of Associated Industries of Missouri. “Minnesota’s and Ohio’s growth show that progress is being made to help manufacturers who have been targeted by federal rules that restrict their utilities or labor force, and a nation-wide belief that manufacturing is a dying industry. AIM is spreading the word that manufacturing is on the mend.”
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