Manufacturers by nature assemble and build goods day in and day out. Creating all of these products requires a tremendous amount of supplies, which are often delivered as a result of a supply contract between two parties. Sounds simple enough, right? (continue reading…)
If U.S. manufacturers had no costs from complying with federal, state and local regulations, they would have a significant advantage over competitors that have such costs. Wouldn’t that be nice? Obviously, compliance costs are an important factor in many business decisions, and the greater the costs, the harder it is for manufacturers to produce and to compete. (continue reading…)
The Bureau of Labor Statistics said that Indiana created 25,500 net new jobs in 2014, the most of any state. Durable goods firms accounted for the bulk of that growth, with 21,900 new workers year-over-year. Indeed, when looking at major sectors in Indiana, a number of fast-growing durable goods industries rise to the top of the list, including motor vehicles, primary metals, fabricated metal products and aerospace. Ohio (up 16,400), Texas (up 11,800), Wisconsin (up 10,800), Michigan (up 9,800) and North Carolina (up 9,500) also had significant manufacturing job growth in 2014.
In December, Tennessee topped the list for manufacturing job creation, creating 2,800 net new jobs in the month. Other states with notable increases in December include Illinois (up 2,300), Pennsylvania (up 2,000), Indiana (up 1,600), Iowa (up 1,600) and Ohio (up 1,500). (continue reading…)
Here is the summary for this week’s Monday Economic Report:
The European Central Bank (ECB) finally announced its long-awaited quantitative easing program on Thursday. The ECB will purchase 60 million euros in bonds each month until September 2016—totaling at least 1.1 trillion euros overall—in an attempt to stimulate growth. Depending on where the Eurozone economy stands pointing September 2016, the ECB might extend its purchasing beyond that point. The impact on the euro was almost immediate, with the euro exchanging for $1.1206 at Friday’s close, down from $1.3927 on March 17, the high point of 2014. This will complicate manufacturers’ ability to sell goods into Europe, something that was mentioned in the sample comments in the latest Kansas City Federal Reserve Bank’s monthly survey (see below). (continue reading…)
Imbalances in the Global Trading System Say India and Brazil? Let’s Start with Manufacturing Tariffs
As the World Trade Organization (WTO) enters its third decade, WTO Director General Roberto Azevêdo is seeking to move forward on a long stalled global liberalization trade negotiations that began in Doha, Qatar, in November 2001. These ambitious, but long troubled talks had fallen apart as major emerging economies, starting with India Brazil and China, failed to commit to ambitious liberalization outcomes for their own economies. (continue reading…)
Today, the NAM turns 120. One- hundred and twenty years of advocating for manufacturers, one-hundred and twenty years of growth and innovation in manufacturing, and one-hundred and twenty years of supporting hardworking Americans. To see where the NAM has come in one-hundred and twenty years, let’s take a look back to the past.
The year was 1895 and the place was Cincinnati, Ohio. In the middle of a deep recession, manufacturers saw a strong need to export production to new markets in other countries. The newly founded National Association of Manufacturers began calls for the creation of the U.S. Department of Commerce and helped launch the National Council of Commerce, which later became the U.S. Chamber of Commerce. (continue reading…)
Tomorrow is a big day on Capitol Hill for manufacturers who want to continue to leverage technology in their products and processes. Both the House and Senate are holding hearings on how to protect the Internet from unnecessary regulation. These hearings will kick off in earnest the 2015 debate on how to keep the Internet open for business.
We will see some calling for legislation that will provide regulatory certainty to all industries. This certainty will then lead to increased investment in our nation’s communications infrastructure thereby facilitating groundbreaking technological innovations in the products and processes of manufacturers. Others will call for applying outdated, 1930’s-era regulations on a primary tool driving the 21st century economy. (continue reading…)
Here is the summary for this week’s Monday Economic Report:
Financial markets around the world continued to react to the softening global economic environment. In particular, foreign exchange markets were rocked by news that Switzerland would no longer support its cap on the franc, where that currency has been seen as a safe haven, particularly against the euro. Almost immediately, the Swiss franc appreciated sharply against the euro and other currencies. For its part, the euro has continued to depreciate against the U.S. dollar, with one euro selling for $1.1581 on Friday. This was down $1.3927 on March 17, the high point of 2014, representing an appreciation of more than 17 percent for the U.S. dollar against the euro. These developments could hurt the ability of manufacturers in the United States to grow exports. (continue reading…)
The Federal Reserve Board said that manufacturing production increased 0.3 percent in December, a slower pace than 1.3 percent growth rate observed in November. As such, it was a softer-than-desired end to the year in terms of output. On the positive side, it was the fourth straight monthly expansion for manufacturing production, and the sector has experienced a healthy 4.9 percent increase in output in 2014. That is more than double the year-over-year pace observed in December 2013 of 2.3 percent, for instance, illustrating the significant gains in production and in the outlook made over the past year. Manufacturers continue to be mostly upbeat about 2015, even as they are keenly aware of possible downward risks, especially in global markets. (continue reading…)
Manufacturers in the Philadelphia Federal Reserve Bank district reported somewhat slower growth in January. The composite index of general business conditions fell from 24.3 in December to 6.3 in January, starting 2015 off on a slightly weaker note. Yet, it was the eleventh straight monthly expansion, and the composite index averaged a sky-high 25.1 in the second half of 2014. Some moderation in growth might have been expected at some point. (continue reading…)