Manufacturing Orders are Up 12.1%

AMT - The Association For Manufacturing Technology recently sent out the monthly USMTO (U.S. Manufacturing Technology Order) report, and the latest figures indicate both sound health and continued expansion in durable goods manufacturing. This year's orders are up 12.1 percent compared with 2011.

Manufacturing technology orders are truly an indication of the vitality of America’s industrial base. Changes in orders are a confirmation of recovery, often establishing an upturn or downturn long before the traditional indicators identify a trend. The press release also included these interesting facts relating to the recent announcement of an increase of 80,000 jobs in June and how those jobs fit in the context of manufacturing:

·         Durable goods manufacturing accounted for 14,000 of the 80,000 jobs—that’s almost a fifth of the total (18 percent) while durable goods manufacturing employment is only 1/17 of all jobs (5.6 percent). This shows where the action is!

·         If the rest of the economy was growing as fast, that would have been a 238,000-job increase.

·         If the rest of the economy was growing as fast as durable goods manufacturing, we would have a new employment number peak in March 2014. At the current rate, we will not hit a new peak until September 2017.

·         And durable goods manufacturing jobs average $25.30 an hour versus the average for all jobs in the U.S., $23 an hour—that’s almost a 10 percent difference.

 

The entire USMTO release, along with companion charts, is available at the AMT website. A graph showing historical trends is also available upon request.