Recent reports show that growth in U.S. manufacturing slowed down during the month of January. There was still growth, just not as much as economists had predicted. When results fail to meet expectations, people develop a sense of uncertainty, and with uncertainty comes questions — a whole slew of questions. If things didn’t go the way they were supposed to go, who knows what’s going to happen next? Is U.S. manufacturing about to plateau? Or plummet? Is this merely just a bump on the road to more manufacturing success?
It’s never a good idea to make hasty assumptions. One “slow” month of manufacturing doesn’t necessarily say anything about its future. After all, the manufacturing sector still grew, just not as much as people were hoping for. January marked the 27th consecutive month of growth for manufacturing. It would be a reach to say that manufacturing is slowing down because it has grown for 27 months straight.
Here’s what we do know about manufacturing.
According to the National Association of Manufacturers, manufacturers contribute over $2 trillion to the U.S. economy, accounting for 12% of the GDP, and for each dollar that is spent in manufacturing, $1.37 is added to the economy. That return is greater than any other economic sector. So, manufacturing is profitable, and is crucial to the U.S. economy.
The Obama administration has invested billions of dollars to promote advancements in manufacturing technologies. It’s the plan to “win the future” which is a clear indication, that not only will manufacturing gain more and more importance, but the U.S. is backing the industry every step of the way.
It can’t be overstated that manufacturing in the U.S. has been growing, non-stop, for more than two years. Seeing growth in the sector for 27 consecutive months is pretty remarkable. While this isn’t necessarily proof that manufacturing will continue to thrive, it certainly gives no indication that the industry is faltering.
Manufacturing is a vital part of the U.S. economy, it has been heavily invested in by the U.S. government, and it has been on the rise since 2012. While no one can predict, with certainty, what will happen with manufacturing over the next few years, the industry does appear to be in a very strong position.