10 Little-Known Facts about U.S. Manufacturing

Manufacturing is part of everyday life – everything we use has to be made somewhere. The United States has long been a world leader in manufacturing; developing process and technologies that have had an effect on manufacturing across the world. The average citizen might not realize just how integral manufacturing is to our national economy, though. Here are 10 facts you may not know about the manufacturing sector in the United States and its importance:
1. U.S. manufacturing is the backbone of economic productivity, accounting for over 12% of our gross domestic product. (1)
2. If U.S. manufacturing were its own economy, it would be the eighth-largest economy in the world based on GDP. (2)
3. As of 2011, the manufacturing sector employed 11.8 million workers, or roughly 9% of the American workforce. (1)
4. Every new manufacturing job is estimated to create 1.6 new jobs in the local service businesses of that manufacturing facility. If it is a high-tech industry, that number increases to 5 new jobs. (1)
5. Manufacturing has lead the rebound from the “great recession,” accounting for 29% of total economic growth in America since 2009. (1)
6. It has also lead in job creation, through the process of “on-shoring,” which is bringing back jobs that had been outsourced. In the first 4 months of 2012 alone, the manufacturing sector added 139,000 jobs. (1)
7. Manufacturing is leading the way in making use of renewable energy – at a usage of 2,269 trillion BTUs of renewable energy in 2012, they made better use of it than the transportation, residential, and commercial sectors combined. (3)
8. Between the four sectors (manufacturing/industrial, transportation, residential, and commercial), manufacturing was the only sector to reduce CO2 emissions between 1990 and 2012, reducing them by 13%. (4)
9. Manufacturing is a big investor in research and development – in 2011, 3.9% of manufacturing sales were used for R&D, while non-manufacturing sales dollars only returned 2.3% to R&D. (5)
10. Manufacturing is leading the push for an increase in STEM (science, technology, engineering, and mathematics) education that can provide a more competitive workforce and improve national economic security.

 
At Pucel Enterprises, we are proud to be part of the sector that is helping America to recover and provide a foundation for the future. We will continue to provide the finest service and products, and help to keep the U.S. a global leader in manufacturing.

Sources:

  1. http://manufacturing.gov/mfg_in_context.html
  2. http://www.themanufacturinginstitute.org/Research/Facts-About-Manufacturing/Economy-and-Jobs/8th-Largest-Economy/8th-Largest-Economy.aspx
  3. http://www.themanufacturinginstitute.org/Research/Facts-About-Manufacturing/Environmental-Impact/Renewable-Energy-Usage/Renewable-Energy-Usage.aspx
  4. http://www.themanufacturinginstitute.org/Research/Facts-About-Manufacturing/Environmental-Impact/CO2-by-Sector/CO2-by-Sector.aspx
  5. http://www.themanufacturinginstitute.org/Research/Facts-About-Manufacturing/Research-and-Development/US-Private-Sector-RandD/US-Private-Sector-RandD.aspx
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What to Watch in the Auto Industry in the New Year

With the New Year upon us, there are many issues to watch for in the auto industry. From the popularity of the ride-sharing service Uber to the uphill battle climate regulators face for getting customers’ attention, there is so much to keep our eyes on in 2015.

The auto industry is facing competition from ride-sharing services such as Uber, which recently got additional funding. While previously many American families had owned two cars, that number is falling, with many people opting to use Uber or carpooling alternatives. Will demand for cars diminish even more this year?

As well, keep your eye on the oil prices. Oil is cheap worldwide, which is great for customers who want to fill up their cars without a big price tag, but that leaves climate regulators struggling to get buyers’ attention. Alternatives to petroleum-based transportation are expensive, and it’s not easy to sell it to people who enjoy the currently low rates for gasoline. Of course, oil prices could rise next week, so we will continue to watch this auto industry issue.

As for Detroit, the automotive hub of the world, experts continue to ponder whether it will be able to sync with high-tech Silicon Valley. As vehicle designs incorporate information technology more and more, that working relationship is going to become more intense over the course of the New Year. We will be watching to see if it is a harmonious union, especially when Google brings its self-driving car to market.

As well, the auto industry will be playing catch up this year to China’s big push to become the world’s largest vehicle market. That means that new car models being produced in America will strive to meet China’s consumer preferences, with the US market being second in consideration. While it initially appears that the preferences between cars buyers in the US and China are similar, differences may begin to show up in 2015.

What will you be watching in the auto industry in the New Year?

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American Reshoring

USA flagYou may have heard the term Reshoring being thrown around on television and even on some other blogs lately. And while you know that Rehsoring is good for America, do you know why? This blog aims to answer those questions you may have.

First, it is important to recognize that the United States used to be a manufacturing powerhouse. But as companies tried to cut costs, they sent many jobs overseas, resulting in the loss of American jobs and an increased trade deficit. Rehsoring is fixing that problem. It allows the United States to increase its exports and regain manufacturing jobs, putting more people to work.

Reshoring not only puts more Americans to work, it also increases the efficiency and quality of the manufacturing plants. By having plants in the United States, companies are able to supply American industries more quickly, while also reducing the carbon footprint caused by shipping products. As Just In Time (JIT) becomes the norm, companies are expecting to have their products when they need them and not a second sooner or later. By avoiding long shipping times, as well as possible Customs hold ups, manufacturers get their finished products into the hands of their customers without delay.

Pucel is proud to have kept our manufacturing in the United States and we are very excited to see more companies return. Please contact us today to see how we can help you.

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Ohio Manufacturing is Rebounding

After a devastating recession that caused economic woes nationwide, the nation as a whole is reporting an improving economy with an increase in jobs and a decrease in the numbers of those unemployed. The worst recession the nation has faced since the Great Depression resulted in the loss of hundreds of thousands of jobs, many of them in manufacturing.

One state making a significant rebound is Ohio. Those in the manufacturing industry are looking for locations that provide a less expensive, yet adequate supply of natural gas, access to state-of-the-art technology, access to suppliers, and ability to transport the goods by various means. The end result has been a significant rebound for manufacturing in Ohio.

Fotosearch_k12505183According to reports, about 17 percent of Ohio’s economy is the result of manufacturing, which is higher than the U.S. average of 12.5 percent. Manufacturing jobs also have the tendency to provide higher pay, which also fuels the economy. While the number of manufacturing jobs had dropped, that number is once again climbing. With a million manufacturing positions in the state in 2000, the state had 668,600 positions in January of this year.

Ohio offers fast and easy access to all of the needs the manufacturing industry may have in today’s fast paced and competitive industry. Many manufacturing companies expand and some are relocating to the area. In four years, the state has seen an addition of 54,000 manufacturing jobs.

During the last four years, 600,000 manufacturing jobs have been added in the U.S. In August, a Boston Consulting Group study said that competitiveness of the U.S. has improved significantly, enabling the country to have the potential to add as many as 2.5 million to 5 million factory and related jobs by 2020.

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Made in America is Making A Comeback.

Manufacturing in the U.S. is making a comeback and is set to grow even more in the coming years. With the global recession mostly behind us, many Americans are beginning to understand how important manufacturing at home really is. The more jobs sent overseas, the fewer jobs there are for Americans. Consumers are starting to understand that a cart filled with foreign made goods is not the best for the American worker.

The driving force behind the resurgence is the cutting edge technology that is used to manufacture most goods. The importance of computer skills and professional training is ingrained in most young Americans, and those skills are exactly what are needed in today’s modern manufacturing. Most new manufacturing jobs require a two-year technical degree. To help students understand this, many programs have been set up across the country to educate students about the STEM fields. These skilled American workers are setting the bar high for foreign-based manufacturers. This leads to higher quality goods, and consumers are taking notice.

Those same consumers can be very fickle at times and it is important for companies to quickly react to those changes in taste. With manufacturing facilities closer to the consumer, changes that would take two months with a foreign-based manufacturer can be completed in just weeks. Companies with plants situated in the United States do not have to worry about long shipping times and possible delays with customs.

For these reasons and many more, manufacturing seems to be returning to the United States. This is of course great for the economy. According to Time “Every $1 of manufacturing activity returns $1.48 to the economy.” While United States manufacturing may never be as big as it once was, this growth is still impressive and important

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2013 Year in review: The Auto Industry

We’re a few months into the New Year, and this seems like a good time to reflect on 2013. More specifically reflect on the how well the auto industry did last year. For starters, the industry sold over 15 million vehicles last year, the highest it’s been since 2007. The 15 million vehicles sold last year is a 50% increase from the low point of the recession in 2009, when vehicle sales hit a record low of 10.5 million. According to Bloomberg; General Motors, Ford and Fiat Chrysler Automobiles were able to increase their collective market share to 45.3% compared to 45.1% for the Asian car makers and 9.6% for European brands. But whether the car maker is foreign or domestic, an increase in automotive sales is a good sign for the economy as a whole.

The auto industry also filed 4,275 new international patents in 2013. That’s an 18% increase over the year before and an 84% increase from just three years prior. While Toyota led the pack with the most internationally filed patents with 1,696, General Motors filed the most U.S. patents with 1,672.This increase in patents is due to new technologies to make cars more fuel efficient, entertaining and safer. The increase in automotive patents indicates a larger trend across all industries. As new technology becomes available, it is important for companies to protect their new ideas. This increase in automotive sales as well as the increase in patents lends experts to believe that we will see a 5.8% increase in U.S. auto sales.

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Making the Manufacturing Comeback

Since the end of the Great Recession, the manufacturing industry has regained almost 554,000 jobs. Companies as big as Apple and GE have brought major production processes back to U.S. shores: employing American workers and promoting American made goods. A recent study from the Congressional Joint Economic Committee shows that the manufacturing sector now accounts for 12 percent of GDP and employs about 12 million citizens across the country. Even the professional skills gap that has been a common gripe for many manufacturers with aging workforces is beginning to narrow. New programs and hiring initiatives are popping up all across the country to help train and match the new generation of workers to meet the growing needs of industry.

Manufacturing has come a long way from the depths of the recession, and more people are starting to realize its potential. Each manufacturing job now supports an additional 1.6 jobs. An advanced engineering job creates another 4.9 jobs. The heart of our economy’s success can be traced back to a healthy manufacturing sector. 2013 was a hopeful year for manufacturers, especially with the great success of the American auto industry. However, the recession cost 2.3 million of the industry’s jobs and there is still a long way to go to full recovery. Pucel is proud to be a part of the comeback and we support everyone who is working to help make it happen. What is good for the industry is good for individual manufacturers, so here’s to a healthy and lucrative 2014!

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Strong Construction Outlook Signals Good Things Ahead

The Dodge Construction Outlook released by McGraw Hill Financial has long been an industry staple for forecasting the upcoming year. The 2014 report includes multiple bright spots and a predicted 9% rise in construction starts, projecting them at $555.3 billion total. Despite multiple uncertain years for the housing and construction markets due to an unstable economy, things are really starting to look up for many businesses and industries. New housing starts are expected to grow 26%, but it’s not just more people building new houses next year. Commercial building starts are anticipating a 17% increase as companies gain confidence in the economy and invest more money in building new spaces for business.

According to McGraw Hill, warehouses and hotels will once again lead the way in new construction, but new stores and office buildings will also help bolster the commercial construction gains. Improving market fundamentals are a big factor behind the positive gains, and more new construction means good news for many other businesses as well. Here at Pucel we understand that an economy gaining strength will bring business not only to us, but to our customers and fellow manufacturers, and one of the most obvious signs of a strong economy is new construction. While these numbers in the 2014 report are still below the 2007 peak, they are well on their way back up from the low levels of the recession.

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Steel Markets Remain Strong

In many ways, steel is the backbone of American industry. Our buildings are supported by it and our cars are made from it. Because it is such an essential material, the steel industry has long been a major economic indicator. People invest less in new construction and development when the economy is bad, which lowers the demand for steel. When the economy is good and people are buying new cars and supporting new construction, the demand for steel increases. Globally, emerging markets are also requiring a lot of steel and are bolstering strong demand for the coming years as they build up their cities and infrastructure.steel cabinet

In the first three quarters of 2013, steel production has increased 2.7% globally year-over-year. The World Steel Association estimates a 3.1% increase in steel usage by the end of this year. In the U.S. specifically, steel companies are competing with new technologies and are learning how to trim production and cut costs to remain profitable. Companies such as Nucor, U.S. Steel, and ArcelorMittal are now purchasing more raw materials in house to manage expenses. Many steel makers are beginning to vertically integrate their businesses, “that means things like owning steel mills, iron ore operations, and coal mines. The goal is to be able to remove the middle men, and added costs, from the process of making steel. It’s a road that several of the industry’s biggest players have been going down,” notes Reuben Brewer in his article on the trend. Pucel Enterprises, like the steel mills, is continually striving to become more efficient and innovative in our endeavors, including our work with steel and stainless steel.

 

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Workbenches Help Put Americans Back to Work

Workbench. It seems like such a simple thing, like something you would see in a tiny garage workshop or your grandfather’s tool shed, but they can be so much more. In pucel 1today’s manufacturing environment, a trusted, well-made, and versatile workbench is simply a necessity. Tools and equipment must be easily accessible and well organized to ensure maximum efficiency in a shop or plant. Drawers, wheels, sliding doors, fluid drain tops, and more can be added to benches to enhance the work area.

Manufacturing activity is on the rise. In September, the PMI Index rose for the fourth pucel 3straight month, suggesting strong growth in factory orders and a positive outlook on the American economy. More orders mean more business, which leads to more hiring and the pucel 2need for more equipment. That’s where we come in. Pucel offers a variety of exceptionally manufactured workbenches and handling equipment to help accommodate the influx of orders and an increase in employees. A clean, organized, and well stocked shop can help shorten turnaround times and make your business an overall better place to work. American manufacturing is making a big comeback, and we are thrilled to be a part of the revolution by manufacturing and supplying all welded, heavy duty, powder coated equipment that won’t let your business down, even when you are up to your neck in orders!

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