According to the Institute for Supply Management, U.S. manufacturing growth improved in May for the first time in six months.
While the growth index didn’t jump significantly, from 51.8 in April to 52.8 in May, any reading above 50 reflects expansion. This is great news, but why the jump?
Made in China America
As wages and energy costs continue to rise in China, their manufacturing advantages over the U.S. are deteriorating. U.S. wage growth has slowed somewhat and natural gas prices have fallen in recent years, making the U.S. a more desirable destination for manufacturing facilities.
Still, there is a lot of growing to do. Wal-Mart certainly realizes the benefit of bringing manufacturing back to the U.S. The corporate giant says they can bring 250,000 manufacturing jobs back home from China, and many of them are home-bound for Michigan, and they are pushing their suppliers to do the same.
Some Very Impressive Facts about U.S. Manufacturing
+ In the most recent data, manufacturers contributed $2.09 trillion to the economy.
+ Manufacturing supports an estimated 17.6 million jobs in the United States—about one in six private-sector jobs.
+ More than 12 million Americans (or 9 percent of the workforce) are employed directly in manufacturing.
+ Manufacturers in the United States perform more than three-quarters of all private-sector R&D in the nation, driving more innovation than any other sector.
+ If every American spent $64 a year on USA-made purchases, it would create 200,000 jobs.
L.D. Davis Industries is proud to have been manufacturing and operating in the United States for the past 90 years. Our adhesive manufacturing facility is based in Monroe, NC and our corporate office is located in Jenkintown, PA.
Sources: Fox Business:
US Industrial Products Likely Improved in May as Manufacturing Sector Strengthens CNBC:
Why the ‘Made in China’ Model is Weakening Alliance for American Manufacturing:
Made in America Inquisitr:
Wal-Mart Brings A Quarter Million Jobs Home From China