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US manufacturing is alive and well


RV_

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I am excited about the returning manufacturing sector to the US which seems to be growing again! Here is a very good Business Insider article with a really informative chart:

 

Excerpt:

 

"Historically speaking, there’s no doubt that the U.S manufacturing industry has had an incredible effect on the U.S economy. Through the captains of industry in the 20th century, manufacturing quite literally propelled the U.S into the World super power it is today.

 

When we talk about manufacturing, we’re referring to the process of transforming raw material into new products - Using whatever industrial means necessary. The production of cars, furniture, oil rig machinery and even medicines falls under the category of ‘manufacturing’.

 

It may sound like a dull sector, but manufacturing is the driving force behind tools and technologies used across multiple sectors. Health care, construction, solar energy, nuclear energy and automobile innovation - It all starts with creating a product, and it’s human nature to constantly adapt, evolve and improve anything we create. Manufacturing is one of the key industries to drive forward R and D in the U.S, showing a 250% increase in manufacturing efficiency per employee since 1987.

 

Throughout the 21st century China has been popularized as the manufacturing powerhouse. Whilst that is true, the public assumption that U.S. manufacturing has decreased as a result couldn’t be further from the truth. In fact, even back in 2010, Business Insider reported that Chinese manufacturing companies were making plans to invest in Idaho!

 

Over 9% of the U.S population are employer in the manufacturing sector, and they’re earning on average $25.58 / hr, significantly more than the $21.32 / hr national average. Numbers employed in the sector were hurt significantly after the 2008 financial crash, but the situation is steadily recovering, and it’s estimated that an additional 3.5 workers will be needed in the next 10 years to meet the demand for homegrown U.S. manufacturing.

 

The infographic below shows 15 incredible facts about the positively flourishing U.S manufacturing sector, and the exciting times that lay ahead."

 

The infographic I found very interesting here: http://www.businessinsider.com/us-manufacturing-is-alive-and-well-2016-7

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Let us hope that we will see an up turn in products "Made in the United States" I am tired of some of the import junk sold today. If you are looking for a single use tool for example, buy the junk, if you are looking to keep an use the tool, buy a better product. The other problem is the automation - robots!

 

Plus, we may have a newer generation that does not know or want to work. Many have forgotten the AERICAN DREAM is spelled WORK!

 

Safe Travels!

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  • 3 weeks later...

and it’s estimated that an additional 3.5 workers will be needed in the next 10 years to meet the demand for homegrown U.S. manufacturing.

 

Hmmm, 3.5 workers in the next ten years? Typo I hope!

 

Short term or over the past year things are not looking so good are they? This article on durable goods down 4% in June is horrible and the graph looks like it has been hovering around the 0% line for the past year. http://ww.marketwatch.com/story/us-durable-goods-orders-sink-4-in-june-biggest-drop-in-almost-two-years-2016-07-27

 

Today we get a 1.2% annualized GDP growth rate over the second quarter and first quarter is revised down to 0.8% and that follows the fourth quarter of 2015 of 0.9%. Given that the 1.2% for the whole year means for the quarter it was "measured" at about 0.3% Is that amount anything more than the likely statistical error?!

 

And yet along with these low GDP growth figures we have been told that we are at or near full employment with unemployment at a very low 4.9% Makes little sense - but that is economics for you.

 

And of course the stock market (at all time highs) is not bothered by these GDP numbers. But why would it be bothered? Don't these numbers make QE5 (or is it 6?) a heart throbbing possibility. Ah the Fed is so beloved by investment banks, big money, and speculators. Yes I'm jealous! I'm also having a hard time figuring out the real value of my retirement funds. I don't believe these Fed induced highs are trustworthy for long term plans.

 

K & J

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If you pick and choose, you can find numbers to support anything. Have manufacturing payrolls increased or decreased? Have the total number of person working in manufacturing increased or decreased? How is manufacturing represented as a percentage of total labor, and is it increasing or decreasing?

 

The numbers I see seem to support that manufacturing jobs are still well paid, but that it is an ever-shrinking part of the workforce.

 

 

According to the Bureau of Labor Statistics (BLS) there were 17,619,000 Americans employed in the manufacturing sector in January 1998; by January 2010, this figure had declined to 11,462,000, or 6,157,000 factory jobs lost in 12 years - an average annual decline of 513,000 jobs and a 35 percent overall decline in manufacturing employment over a 12-year period

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Numbers employed in the sector were hurt significantly after the 2008 financial crash, but the situation is steadily recovering, and it’s estimated that an additional 3.5 workers will be needed in the next 10 years to meet the demand for homegrown U.S. manufacturing.

 

The following graph tells a more complete story. https://fred.stlouisfed.org/series/MANEM

 

The above quote should read, "Numbers employed in the sector were hurt significantly beginning in 1979, again in 2001 and again in 2007. The recovery has been dismal to non-existent.

 

Maybe the 3.5 was not a typo!

 

J

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KandJ,

Click on the link I provided and you will see the chart and Number 8 which states 3.5 million, not 3.5. Just a typo. Dismal to non-existent? Ok, I see it the other way. And Ireland tax dodges are coming back to haunt the offshoring companies who thought the CEO boys club was forever. Accountability is part of the American spirit. The buck does stop.

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The other problem is the automation - robots!

 

They're not going away anytime soon. Plus, with the projected future labor shortages -- we'll need them. Just don't date one.

 

 

Plus, we may have a newer generation that does not know or want to work. Many have forgotten the AERICAN DREAM is spelled WORK!

 

Horse feathers! They're no different that any other generation. I'm sure your generation was badmouthed too.

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  • 4 weeks later...

Just a personal observation. Try hiring a young worker today. Not much luck.

 

Safe Travels!

Just read this article ("Having Trouble Hiring? Trying Paying More") that relates to your comment. https://www.bloomberg.com/view/articles/2016-09-08/having-trouble-hiring-try-paying-more

 

Imagine that, "paying more!" What an old fashion idea. It dates back to the 70s I think. Back when median real wages stop rising.

 

K and J

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I wondered why the stock market was having a good day and then I found the reason:http://www.marketwatch.com/story/industrial-output-weakens-in-august-2016-09-15

 

"Industrial production fell 1.1% in the 12 months through August. Manufacturing output fell 0.4% over the year, and mining output declined 9.3%.

In August, manufacturing, which analysts said accounts for 80% of total industrial output, fell 0.4%."

 

More hope by speculators for continued "cheap money" (low interest rates).

 

K&J

 

Oops forgot this one on retail sales: http://www.marketwatch.com/story/us-retail-sales-falter-in-august-2016-09-15

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