May 23, 2011
Manufacturers continue to expand, but overall growth has slowed somewhat, according to several measures released last week. The Federal Reserve's closely-watched industrial production numbers indicated that manufacturing production was down 0.4 percent in April, largely due to supply disruptions stemming from the Japanese disaster. Motor vehicle production, for example, was off 8.9 percent. Excluding the auto sector, industrial production rose 0.2 percent, lending support to the notion that April's decline might be temporary.
Two regional Federal Reserve Bank surveys showed that manufacturing output, while still growing, cooled somewhat in April. The New York Fed found that the index of new orders and shipments fell for the month. It continued to cite higher raw material costs as a concern, but positives included job growth and an optimistic six-month outlook. The Philadelphia Fed's survey, while slightly more pessimistic than the New York Fed's, had many of the same findings. Its index of business activity fell significantly but still indicated future growth.
Despite some hiccups, the U.S. economy continues to recover, and manufacturers are playing a significant role. The Conference Board's Leading Economic Index declined, mostly due to supply chain issues and higher monthly initial job claims, but its Coincident Economic Index grew, assisted by increases in industrial production and nonfarm employment. The Bureau of Labor Statistics reported that 38 states had increases in manufacturing employment in the month of April, with the largest gains in Rust Belt states.
Meanwhile, the National Association of Business Economics released its forecast of growth for 2011 and 2012, which was extremely positive. While concerns remain, respondents predicted 3.3 percent growth in 2011 and are expecting industrial production to be up 4.5 percent this year.
To that end, the NAM/Industry Week quarterly survey of NAM members is an important yardstick for addressing the current state of manufacturing, particularly the sentiments of NAM members. Please take a few minutes to complete this 12-question survey. The results will be posted online by early June and will appear in the next issue of Industry Week. To complete the survey, please click here. Responses are due by Friday, May 27. Thanks to those who have already done so.
Chad Moutray
Chief Economist
National Association of Manufacturers
Quick Manufacturing News
Report calls on countries to resist trade-hindering sanctions. Click to continue
By EDCUtah
What is the overall economic impact of technology commercialization at the University of Utah? In 2009, U of U startups and licensees contributed approximately $1.2 billion to Utah's gross state product. Further, they generated an estimated $754.5 million in statewide earnings. That's according to a recent report by Jan Elise Crispin, senior research economist for the Bureau of Economic and Business Research (BEBR), David Eccles School of Business at the University of Utah.
{read more}
Los Angeles Times
According to the LA Times more companies seek to tap the growing desire for "eco-friendly" products, "environmentalists and some consumers are crying foul, saying that many companies are making the products out to be greener than they really are, a practice they call greenwashing." Scott McDougall, the CEO of marketing company TerraChoice, said the danger was that as exaggerated claims proliferate, "consumer skepticism will become cynicism and they'll stop choosing green products at all." One of the main issues, the Times notes, is that there is little agreement on what qualifies a product as being eco-friendly, and therefore what qualifies as greenwashing. The FTC is in the process of updating its "voluntary guideline," and in the interim "there's a swarm of companies that issue green certification, endorsements and labels for a fee."
"U.S. Export Adaptability at the State Level" by Ball State's Center for Business and Economic Research (CBER) finds the top five are Nevada, West Virginia, Delaware, Utah and Indiana.
Read More »
Manufacturers continue to expand, but overall growth has slowed somewhat, according to several measures released last week. The Federal Reserve's closely-watched industrial production numbers indicated that manufacturing production was down 0.4 percent in April, largely due to supply disruptions stemming from the Japanese disaster. Motor vehicle production, for example, was off 8.9 percent. Excluding the auto sector, industrial production rose 0.2 percent, lending support to the notion that April's decline might be temporary.
Two regional Federal Reserve Bank surveys showed that manufacturing output, while still growing, cooled somewhat in April. The New York Fed found that the index of new orders and shipments fell for the month. It continued to cite higher raw material costs as a concern, but positives included job growth and an optimistic six-month outlook. The Philadelphia Fed's survey, while slightly more pessimistic than the New York Fed's, had many of the same findings. Its index of business activity fell significantly but still indicated future growth.
Despite some hiccups, the U.S. economy continues to recover, and manufacturers are playing a significant role. The Conference Board's Leading Economic Index declined, mostly due to supply chain issues and higher monthly initial job claims, but its Coincident Economic Index grew, assisted by increases in industrial production and nonfarm employment. The Bureau of Labor Statistics reported that 38 states had increases in manufacturing employment in the month of April, with the largest gains in Rust Belt states.
Meanwhile, the National Association of Business Economics released its forecast of growth for 2011 and 2012, which was extremely positive. While concerns remain, respondents predicted 3.3 percent growth in 2011 and are expecting industrial production to be up 4.5 percent this year.
To that end, the NAM/Industry Week quarterly survey of NAM members is an important yardstick for addressing the current state of manufacturing, particularly the sentiments of NAM members. Please take a few minutes to complete this 12-question survey. The results will be posted online by early June and will appear in the next issue of Industry Week. To complete the survey, please click here. Responses are due by Friday, May 27. Thanks to those who have already done so.
Chad Moutray
Chief Economist
National Association of Manufacturers
Quick Manufacturing News
Report calls on countries to resist trade-hindering sanctions. Click to continue
By EDCUtah
What is the overall economic impact of technology commercialization at the University of Utah? In 2009, U of U startups and licensees contributed approximately $1.2 billion to Utah's gross state product. Further, they generated an estimated $754.5 million in statewide earnings. That's according to a recent report by Jan Elise Crispin, senior research economist for the Bureau of Economic and Business Research (BEBR), David Eccles School of Business at the University of Utah.
{read more}
Los Angeles Times
According to the LA Times more companies seek to tap the growing desire for "eco-friendly" products, "environmentalists and some consumers are crying foul, saying that many companies are making the products out to be greener than they really are, a practice they call greenwashing." Scott McDougall, the CEO of marketing company TerraChoice, said the danger was that as exaggerated claims proliferate, "consumer skepticism will become cynicism and they'll stop choosing green products at all." One of the main issues, the Times notes, is that there is little agreement on what qualifies a product as being eco-friendly, and therefore what qualifies as greenwashing. The FTC is in the process of updating its "voluntary guideline," and in the interim "there's a swarm of companies that issue green certification, endorsements and labels for a fee."
UTAH RANKS HIGH IN ADAPTING TO AN EVOLVING WORLD TRADE MARKET
Goods and materials produced by firms in several states are in high demand as world trade markets continually evolve, says a new ranking of international exporting by Ball State University."U.S. Export Adaptability at the State Level" by Ball State's Center for Business and Economic Research (CBER) finds the top five are Nevada, West Virginia, Delaware, Utah and Indiana.
Read More »
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