There was an advancement at an annual rate of 3.2% in the third quarter in the U.S. manufacturing industry and it is expected to continue to grow. The Manufacturers Alliance for Productivity and Innovation (MAPI) reported there will be 3.4% of growth in the manufacturing production in 2014, 4.0% in 2015 and 3.6% in 2016 respectively. According to MAPI, all 23 manufacturing industries are forecast to grow, leaded by housing industry at 29%, and aerospace & parts at 10%. The manufacturing with the highest growth rate will be High-tech industrial production.
Manufacturing Growth will be bigger than US Growth
In the first 6 month of 2014, manufacturing production increased at a 4% annual rate while there was only 0.9% of increase in inflation-adjusted GDP. In 2015 the demand toward manufacturing goods will boost the industry to grow faster than overall economy.
Customers tend to buy low quality products during economic downturns and times of economic uncertainty, and wait until the goods reaches their maximum lifespan, and/or economy gets better. As economic growth is expected and customer confidence is strengthened, manufacturing production should accordingly increase. Automotive and housing industries have been contributed as strong indicators to predict the future trends and MAPI reported that auto sales will increase 3% in 2015 and housing 10% by the end of 2014 and 29% in 2015, which will significantly influence on the purchases of other related goods.
MAPI Forecast for 2015 Manufacturing:
- 3% of increase in Auto sales
- 6% of growth in 2015 and 4% in 2016 for household appliance production
- 2% of increase in 2015 and 3% in 2016 for Pharmaceutical and medical production
- 1% of increase in 2014, 7% in 2015 and 4% in 2016 for iron and steel production
- 6% of increase in both 2015 and 2016 for alumina and aluminum production
- Moderate gains of 5% in 2015 and 4% in 2016 in fabricated metals production
- 4% of increase in 2015 and 2% in 2016 for basic chemical production
- 3% of increase in 2015 and 2% in 2016 for paper production
- 6% of increase in 2015 and 7% in 2016 for mining and oil and gas field machinery production
- 9% of increase in 2015 and 5% in 2016 for industrial machinery production
- 8% of increase in 2015 and 9% in 2016 for communication equipment production
- 6% of increase in 2015 and 5% in 2016 for electrical equipment production