Last week in our blog we talked about whether manufacturing in the U.S. was the wave of the future or the heritage of the past. I hope you read it and shared it with others you know that work for manufacturing companies or provide services to them.
As a follow-up here’s some great manufacturing news………American manufacturers booked $32.6 billion in new orders for machinery equipment in September 2011 – the most since July of 2008 according to Census Bureau data released in late October.
According to a recent article in Business Week from Bloomberg, there’s “no evidence” of a collapse in North American manufacturing machinery equipment as shipments are still growing with the total for September up 13% from a year ago. But let’s also look at the numbers from a few machinery manufacturers and their outlook going forward.
- Parker Hannifin: increased its fiscal 2012 outlook for revenue growth in the industrial North American segment to about 8.3% from 6.2% as orders “re-accelerated” during the period – growing 16% compared with a year ago.
- Caterpillar: reported 3rd quarter revenue of $15.7 billion compared with $11.1 billion a year ago with an order backlog of $24.4 billion, up 40 percent.
- Kennametal: according to their president and CEO, the company has “continued to experience growth in customer demand………”which supports our continued expectations of a manufacturing-led recovery at least in the United States.”
According to Bloomberg, the manufacturing machinery equipment segment is attracting investors because it supplies key end-markets such as agriculture and energy where demand remains strong. Although skepticism remains about the industrial economy and machinery stocks, some analysts believe that robust activity suggests the risk of a double-dip recession is less likely. The recovery in capital spending worldwide seems to be riding on the U.S., China and emerging markets and there is “strong momentum” in these expenditures, which includes machinery equipment, even with the European debt crisis.
Remke is going with US Manufacturing – the Wave of the Future. We’ll continue to bring you news & stories about this critical component of the US economy.
What say you? U.S. Manufacturing the Wave of the Future – or the heritage of the past? What is your biggest concern about manufacturing in our country? Please share your thoughts – and thanks for reading EVERYTHING’S CONNECTED.
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