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U.S. Manufacturing Sees Growth in 2012

February 29th, 2012

Earlier this year we wrote about the potential job market for the Inland Empire in 2012. San Bernardino and Riverside counties are full of distribution centers and manufacturers, so we thought it would be interesting to see where manufacturing in the country as a whole is headed.

Bloomberg.com reported Dec. 6
that a survey by the Institute for Supply Management forecasted that “[p]urchasing managers at factories anticipate sales will grow 5.5 percent next year [2012] and capital investment will increase 1.9 percent…. Revenue and spending will increase at a slower pace among service providers, which account for about 90 percent of the economy.”

When it comes to employment, hiring is projected to “increase 1.3 percent in 2012, compared with a 1.1 percent projected rise at non-manufacturing companies” (read, distribution centers among other “non-manufacturing” firms), the article continued. Meanwhile, sales “in the services industry will increase 3.1 percent next year and investment spending will rise 0.1 percent.”

What’s fueling this growth? Emerging markets, according to the article:

Such growth is “helping sustain demand for U.S.-produced goods. Deere & Co., the world’s largest farm- equipment maker, on Nov. 23 reported fiscal fourth-quarter profit and forecast 2012 earnings that topped analysts’ estimates.”

What could this mean for the Inland Empire?

The Press-Enterprise on Feb. 10 reported that:

American Manufacturing has been declining for about two decades, but factory executives in Inland Southern California are too busy developing and marketing their products to worry about that.

In fact, many manufacturers reported that they are having a hard time finding skilled workers, the article stated (as a reporter covered the first-ever Inland Empire Manufacturers’ Summit held Feb. 3 in Ontario).

Still, while things are looking up for Inland Empire manufacturers, employment in the sector is still less than it was in 2006. The Press-Enterprise article stated that

According to the most recent state data, more than 84,000 Inland residents are employed by manufacturing, down from about 123,000 in 2006. Much of that decline is blamed on the collapse of the residential housing markets, because many Inland factories made items used in home construction.

If you possess the manufacturing skills, we want to hear from you! Inland Empire companies need you and we can help you match your skills with these companies. Contact a recruiter at Arrow Staffing today!

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