How Will A Brighter Manufacturing Forecast Impact Demand Planning?
Posted in Subcontract Manufacturing Trends on July 30, 2013
For the past several years, U.S. manufacturing has had nothing but headwinds. Now, the wind might not be at manufacturers’ backs, but at least it’s not always in their faces.
The future for manufacturers is looking bright, according to research by the Manufacturers Alliance for Productivity and Innovation (MAPI). Manufacturing production will increase by 3.6 percent in 2014, MAPI’s demand planning forecasting research predicts. A recent IndustryWeek article says a stronger U.S. economy is bolstering the forecast as consumers are able to use more credit, housing prices are rising, the job market is recovering and income is increasing.
To reap the benefits of some of this anticipated growth, it’s the perfect time to get your house in order and run your business as effectively and efficiently as possible. With the rise of nearshore manufacturing, there’s a real opportunity — especially for small businesses — to experience growth.
Rather than going to low-cost markets, organizations are seeing the value in manufacturing closer to where the customer is located. That’s great news for U.S. manufacturers.
These factors can help manufacturers with their demand planning. Other key findings include the following:
- Production in non-high-tech industries will grow by 3 percent.
- Production amongst high-tech manufacturers (which covers 10 percent of U.S. manufacturing) will grow 4.4 percent.
- High-tech manufacturing will expand by 6.1 percent.
- Investment in equipment and software will grow by 5.6 percent in 2013 and 7.4 percent in 2014.
- Industry exports will increase 2 percent in 2013 and 4.5 percent in 2014.
- Manufacturing employment is predicted to grow from 87,000 to 137,000 additional jobs. By 2014, total jobs will climb from 289,000 to 352,000.
As manufacturers estimate for future production and employment, these demand planning statistics will aid their business planning.
Source: IndustryWeek, June 2013