There’s no denying the fact that manufacturing in the United States is improving. Unemployment rates are the lowest since the financial crash, and Americans are finally able to pay their bills. To put this into perspective, a recent study found US manufacturing to grow at its fastest pace in nearly half a year, attesting to a positive turnaround.
The Institute for Supply Management — a partnership of global trade managers — made this revelation earlier this month, saying the national manufacturing index increased to 53.5 in June, up from 52.3 in May. June’s manufacturing index was roughly the same as January, which was the highest thus far on record. But analysts are optimistic about the future of manufacturing in the US, predicting it will only grow and improve in the months to come.
As reported by the NY Times, manufacturing has accelerated in recent months, showing evidence that American factories are evolving to meet the unique needs of today’s market.
“Manufacturing growth has accelerated for the last two months, evidence that American factories are beginning to adapt and overcome the drags caused by a rise in the dollar’s value and cheaper oil prices, two trends that date to last fall,” wrote the New York Times. “The gauge of new orders rose slightly to 56 from 55.8”
So, what’s causing this recent improvement in the US manufacturing industry? There are several different factors at play, one of which is the simple fact that more and more companies are choosing to create jobs here in the US as opposed to abroad. Known as “reshoring,” we’ve seen an uptick in the number of American jobs as of late. Companies are now realizing that it’s more beneficial for them to establish factories and headquarters here in the US rather than foreign countries.
Another factor that’s playing a role in the US manufacturing industry is the economy. When the economy improves, people have more money to spend. And when they have more money to spend, well, they spend it. This means manufacturers are experiencing higher sales; thus, spurring the need for greater output.
Will the US manufacturing industry continue to grow at its current pace? There’s really no way to predict the future, regardless of what any analyst tells you. However, all signs are pointing towards a strong future for the nation’s manufacturing industry.