American Manufacturing: Back in the Game?
Wednesday, February 07, 2018
The U.S. manufacturing sector continues to rebound as a result of pent-up demand for goods and, perhaps, the effect of the Trump administration’s “pro-America” agenda.
The U.S. economy has seen slow and steady growth since the Great Recession ended in June 2009. While many are still suffering the effects of the subprime mortgage crisis, the U.S. economy has actually experienced an unprecedented net-expansion for 100 consecutive months as of September 2017.
Depending on how you measure it, manufacturing makes up between 10 percent and 15 percent of America’s overall economy, accounting for a large portion of overall economic growth. Although the manufacturing rebound hasn’t been as robust as other sectors of the economy, the manufacturing sector has experienced 13 consecutive months of growth and continues to trend upward. This trajectory continues despite supplier problems with distribution channel speed and recent hurricanes causing major delays in supply chain fulfillment.
Two factors have substantially impacted this growth and will likely continue to drive production levels and capital investment into the sector.