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Manufacturing industry seeing biggest growth of past year

Manufacturing industry seeing biggest growth of past year

Tools like warehouse management systems have made manufacturing enterprises much quicker and more efficient than they have ever been, and it seems the numbers are starting to really show it. Reuters reported that December growth across the manufacturing industry was the highest it has been in the past 11 months. These numbers come from Markit, a financial data firm, which said its index grew to 55.0 in December. Any index number above 50 means there has been expansion and growth in the industry, the company said.

Output saw an especially big increase in the Markit report, as it was at its highest level in 21 months at 57.5 in December. This likely comes from companies wanting more machinery and plants, which is a great sign for the U.S. economy.

“This tells us that business spending is picking up on the back of rising confidence, which adds to the sense that the recovery is (becoming) more self-sustaining,” said Markit chief economist Chris Williamson, according to the news source.

The positive trend for the industry is expected to continue into 2014, according to what the Manufacturers Alliance for Productivity and Innovation chief economist Daniel Meckstroth told Industry Week. Numbers from his company showed that manufacturing production will likely see a 3.6 percent expansion this year with a net increase of hiring of nearly 300,000. Meckstroth said there are signs of “pent-up demand,” as well as potential for using money that was previously not spent.

“There are several reasons to be optimistic about continued economic growth in 2013 and 2014,” he told Industry Week.

Companies looking to gain speed and flexibility in their manufacturing processes may want to look to adopt a barcode inventory system that can help make working in warehousing much easier and more efficient. This should help keep the continued growth of manufacturing going in the long run.

For more information on improving efficiency with barcode technology, download the free white paper entitled “Keeping the Physical World and the Virtual World in Sync” from DMS today.

Posted in: Manufacturing Productivity

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