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Factory Activity Bodes Well for Overall Economy
Published on May 18, 2011
Read our article, 'Factory Activity Bodes Well for Overall Economy' at 'Time to Start Up,' the small business blog by BizFilings.
Forming a company in the U.S. manufacturing sector has not been a simple task over the past few years, as factory jobs continue to ship overseas. However, a report released Tuesday by the Institute for Supply Management shows revenues in the industry are indeed improving.
Specifically, ISM projects that manufacturing revenues will grow by 7.5 percent this year despite continued fluctuations in the jobs market. This is welcome news as the U.S. manufacturing sector employs one in six private workers.
"Much of manufacturing has emerged from the economic downturn and is experiencing significant growth. Capacity utilization is back to typical levels and manufacturers are significantly investing in their business," said Norbert Ore, chair of the institute's manufacturing business survey committee.
Additionally, non-manufacturing revenues are projected to rise by 2.1 percent, compared to a mere 0.2 percent observed in 2010.
The survey points to a degree of resilience in the U.S. economy, even as consumer activity and employment remain stubbornly slow to improve. But as trends continue to rise, entrepreneurs need to consider how their startups will be impacted by increasingly complex supply chains, spending and financing concerns.