Manufacturing production rebounded in June after a disappointing May report. Output in the sector rose by 0.4 percent in June, following a decline of 0.3 percent in May. Strong growth in the motor vehicles and parts segment, up 5.9 percent, helped to boost the headline number. Yet, despite some progress in June, it is safe to say that manufacturing activity remains quite challenged. Over the past 12 months, manufacturing production has risen by just 0.4 percent. That is an improvement from the year-year over year decline of 0.2 percent seen in May, but such sluggish growth was indicative of recent struggles that manufacturers have had in light of global headwinds. Capacity utilization increased from 74.8 percent to 75.1 percent, but that remained lower than the 75.3 percent utilization rate observed in June 2015. Read More
Election buzz is in the air as next week the political party conventions begin. Starting with the Republican National Convention July 18-21 in Cleveland followed by the Democratic National Convention July 25-28 in Philadelphia, both Secretary Hillary Clinton and Donald Trump will take center stage at their party’s events.
In a special campaign edition of ShopTalk, National Association of Manufacturers (NAM) Senior Vice President of Communications Erin Streeter sat down to discuss the conventions with NAM Senior Vice President of Policy and Government Relations Aric Newhouse and Senior Vice President of External Relations Ned Monroe. Interested in learning more? Here’s what you need to know ahead of both conventions. Read More
National Association of Manufacturers President and CEO Jay Timmons issued the following statement after the Bureau of Labor Statistics’ release of the June jobs numbers today:
“While many in Washington may claim today’s report is a positive development, the bottom line is that an increase in the unemployment rate is unacceptable. Our economy isn’t creating jobs fast enough, especially manufacturing jobs. While 14,000 new manufacturing jobs last month is a positive development, we have lost 24,000 manufacturing jobs so far this year. We are not reaching our full potential. Our elected leaders in Washington and candidates on the campaign trail need to give us clear answers. What are they going to do to remove barriers to economic growth? If they need a guide, manufacturers have already outlined a clear agenda to move us forward.
“It’s frustrating for manufacturers to hear both major party candidates pretend the solution is to bash free trade and perpetuate myths about the Trans-Pacific Partnership and trade agreements in general. It’s time for this isolationist rhetoric to stop. It helps no one—except our competitors in the global economy. The United States should be writing the rules on trade. Trade opens up opportunities for manufacturers in the United States to reach new customers with our products, strengthening our economy and creating good jobs.”
The Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers’ Index (PMI) said that manufacturing activity grew at its fastest pace in 14 months. The composite index rose from 51.3 in May to 53.2 in June. Strong growth in new orders (up from 55.7 to 57.0) and production (up from 52.6 to 54.7) helped to boost the headline number by more than expected. Notably, exports (up from 52.5 to 53.5) also improved in this report, which was encouraging given recent struggles in increasing demand abroad. More importantly, this was the fourth consecutive month with manufacturing activity expanding, signaling some stabilization in the sector after five months in contraction in the months prior to that. Read More
This guest blog post is authored by John Bradburn, GM global manager of waste reduction. It is the inaugural blog post in the National Association of Manufacturers’ (NAM) Manufacturing a Sustainable Future blog series.
It’s an exciting time to be working in the automotive industry. Our chairman and CEO, Mary Barra, believes the industry will change more in the next five years than it has in the last 50. GM is restructuring its portfolio to maximize vehicle efficiencies, electrifying vehicles and providing connectivity solutions that promote sustainability. All of this transformation includes our operations and how we make our products. We are committed to responsible manufacturing that conserves our industry’s vital resources. Read More
Though released as part of a package designed to curb cross-border mergers, the Treasury’s broad regulations do little to stop this activity. Instead, these efforts will have a significant negative impact on manufacturers in the United States while stifling investments, job creation and economic growth.
In this week’s Shopfloor podcast, National Association of Manufacturers (NAM) Vice President of Tax and Domestic Economic Policy Dorothy Coleman and NAM Senior Director of Tax Policy Carolyn Lee discuss the implications of these regulations.
The Bureau of Economic Analysis said that real GDP grew by 1.1 percent in the first quarter, improving from the prior estimate of 0.8 percent. The revision included better data on nonresidential fixed investment and exports that previously reported, but it also found that consumer spending on services did not grow as fast as once thought either. Nonetheless, the bottom line was largely the same. The U.S. economy experienced relatively sluggish growth in the first quarter thanks to stagnant spending on consumer goods, declining business investment and still-soft export growth, even with improvements in this latest report. Read More
The Markit Flash Eurozone Manufacturing PMI rose from 51.5 in May to 52.6 in June, its highest level so far in 2016. The irony is that this news came out on the day of the “Brexit” vote, with the United Kingdom deciding whether or not to leave the European Union. Along those lines, the Markit Flash Eurozone Composite PMI, which includes services, declined from 53.1 to 52.8, its lowest point since January 2015. As such, even with encouraging industrial news, overall economic sentiment remained mixed, with modest growth that has slowed so far this year. Uncertainties related to the “Brexit” vote, combined with global headwinds, have added to those anxieties.
Nonetheless, manufacturers reported faster expansions for new orders (up from 51.7 to 53.4), exports (up from 50.9 to 52.5), output (up from 52.4 to 53.8) and employment (up from 51.2 to 52.1) in June. Demand and production grew at their fastest rate since December, recovering from the lull in May, which had been the slowest pace year-to-date. Overall, though, Eurozone manufacturers have now reported growth in the sector in every month since June 2013. Read More
Manufacturers are encouraged today to see leaders on the Senate Environment and Public Works Committee hold a meaningful hearing on ways to ease the implementation burdens from the Environmental Protection Agency’s (EPA) 2015 ozone regulation. Manufacturers across the United States have shown that environmental progress and job creation can go hand in hand, but the ozone standards finalized by the administration last fall take us further from that goal. By setting the strictest ozone standards ever at a time when states and manufacturers were still working toward meeting the existing requirements, the administration decided to add another layer of red tape to job creation and economic progress.
The objectives of both bills discussed at today’s hearing—Sens. Shelley Moore Capito (R-WV) and Jeff Flake’s (R-AZ) S. 2882, the Senate companion bill to the House-passed H.R. 4775, and S. 2072, a bill offered by Sens. Orrin Hatch (R-UT) and Claire McCaskill (D-MO)—would help ease the burden from the ozone rule, while ensuring our nation’s air quality continues to improve.
At the hearing, Glenn Hamer, president and CEO of the Arizona Chamber of Commerce & Industry, which is the National Association of Manufacturers (NAM) state allied group in Arizona, spoke to the challenges business and manufacturers in his state face to implement this regulation. Earlier this year, Hamer and NAM President and CEO Jay Timmons coauthored an op-ed highlighting those roadblocks to growth.
Manufacturers encourage Senate leaders to continue working to address these issues and ultimately bring an ozone implementation relief bill to the floor for passage