Manufacturing Outlook 2017
On the heals of a poor performance year for manufacturing, there is some indication for a mild rebound in 2017. As job numbers continue to increase, and the demand for American made goods follows suit, we seem to be at the beginning of what could be an upward cycle. However this climb out of the valley might look different than previous sector gains. In the past year, the country saw both residential and commercial real estate make decent gains, but capital expenditures in equipment and facilities was down. This could be attributed to a lack of confidence in the direction of regulation, and low inventory operations. Without major investments in facilities, companies are growing with efficiency instead of producing on a mass scale. The ability to make products faster, allows for reduced inventory, and slower more steady growth. Couple efficiency with a steep decline in American exports and you have a growth cycle that is slow, steady, and internal. Good, but different. The bright news, is regardless of magnitude, the numbers are moving in the right direction, and manufacturing should see more stability in 2017, HAPPY NEW YEAR!