Executive Briefings

For U.S. Manufacturers to Remain Upbeat, Several Industry and Economic Stars Must Align

After a long period of economic turmoil, manufacturers in the United States are finding reasons to be optimistic. Demand is up and companies are seeing improvements in productivity, along with increases in profits. For this upward trajectory to continue, however, industry executives and governmental representatives cannot be complacent. Production efficiency, energy costs, tax legislation and education access are integral to the success of the industry's current fiscal condition and need to be nurtured or reformed. If the current business environment is to last, there is still more work to do.

By most measures, the United States economy is gaining strength. In 2014, non-farm job growth rose an average 246,000 per month, with creation of high-wage jobs often outpacing low-wage jobs. According to the 2014 McGladrey Manufacturing & Distribution Monitor Report, a survey of more than 1,100 mostly privately held manufacturers and distributors, 67 percent of middle market manufacturers and distributors who participated in the survey expected an increase in profits before interest and taxes over the course of the coming year; 57 percent expected to increase their workforce.

The Monitor also noted that 36 percent of participating executives described their businesses as thriving, a significant difference from 2009, when only 9 percent were bold enough to say in the middle of the recession that they were doing more than just holding steady.

To maintain this positive trajectory, a number of industry and economic stars need to align.

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By most measures, the United States economy is gaining strength. In 2014, non-farm job growth rose an average 246,000 per month, with creation of high-wage jobs often outpacing low-wage jobs. According to the 2014 McGladrey Manufacturing & Distribution Monitor Report, a survey of more than 1,100 mostly privately held manufacturers and distributors, 67 percent of middle market manufacturers and distributors who participated in the survey expected an increase in profits before interest and taxes over the course of the coming year; 57 percent expected to increase their workforce.

The Monitor also noted that 36 percent of participating executives described their businesses as thriving, a significant difference from 2009, when only 9 percent were bold enough to say in the middle of the recession that they were doing more than just holding steady.

To maintain this positive trajectory, a number of industry and economic stars need to align.

Read Full Article