September/October 2011 | Trade and Industry Development

September/October 2011

Trade & Industry Development Magazine

Trade & Industry Development - September/October 2011

The manufacturing process has changed dramatically over the years, but at the core it is still the art of creation and production. Everything from shoes to CPUs to airplanes owes its existence to manufacturing. And in the U.S., the long overlooked importance of manufacturing is starting to reemerge. One of the few bright spots in our halting economic recovery has been manufacturing, and now the realization is dawning on policy makers that a “knowledge-based” economy cannot stand on its own and be sustainable unless it is also linked to the application of that knowledge – which means manufacturing.

In this issue, we examine manufacturing from several different angles, and offer advice to executives looking to expand their facilities. Paul Hampton, of Newmark Knight Frank, offers pragmatic solutions to companies that need to add facilities but are also focused on environmental initiatives. In his article on working with utilities, Larry Gigerich, of Ginovus, provides significant insight into what indications to look for in choosing a worthy utility partner. And Harry Moser, founder of the Reshoring Initiative, provides bottom-line value in his examination of the total cost of ownership, and how it relates to sourcing components and siting facilities. Also, Jennifer Alten examines the benefits offered by Foreign Trade Zones, and Linda Dobel takes a look at some of the designated sites in North America. Douglas K. Woods, president of the Association for Manufacturing Technology, provides a clear snapshot of manufacturing in America and the developing trends. And Dennis Donovan, of WDG Consulting, charts the outlook for facility expansions throughout the rest of the year and into 2012.
 

In this issue

AMT: U.S. Manufacturing Improves, but Outlook is Uncertain

BY: Douglas K. Woods

The first three quarters of 2011 have seen the U.S. manufacturing sector rebounding from the worst downturn since the Great Depression. Economic indicators are positive, demand for equipment has increased, and government support of manufacturing is encouraging. We at AMT – The Association for Manufacturing Technology – watch key indicators closely for our industry and our customers’ markets. We track the outlook for manufacturing technology orders and the predictions for the markets that our member companies serve, primarily durables manufacturing. While indications point toward continued recovery, the industry needs support to regain its rightful place atop the U.S. economy. So far in 2011, order levels for our industry are up more than 108 percent from 2010, according to data from the U.S. Manufacturing Technology Orders (USMTO) report. That is on top of a very good order year in 2010, which was an 85 percent gain over 2009! At this point, signs point toward continued growth -- albeit at a slightly slower pace, which is to be expected as orders approach their more normal, pre-recession levels. more....