U.S. manufacturers are canceling out global competition and providing a much-needed boost to the American economy with their increase in April production rates. The data show a trend toward a recovering manufacturing sector, as well as a healthy future.
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A recent report by Reuters shows, “U.S. manufacturing growth accelerated for a third straight month in April, an industry report showed on Thursday, boosted by a pickup in employment growth. The Institute for Supply Management (ISM) said its index of national factory activity rose to 54.9 in April, up from 53.7 in March. It was the best reading since December.”
The boon to the economy lies in manufacturing job growth. Hiring jumped more than three points in March. Analysts expect similar or better numbers for April. The increase in hiring points to higher orders for U.S. manufacturers, economists say. Indeed, U.S. goods continue to be on the upswing for the second straight month following a dreary December and January.
The Associated Press notes, “[…] manufacturing grew faster in April than in March as exports picked up and factories accelerated hiring. The higher reading adds to other evidence that manufacturers are expanding steadily after a sluggish start to the year. Solid factory output will likely boost economic growth in the coming months.”
Perhaps the biggest win for U.S. manufacturers is their role within the global market. The already major manufacturing hub could see even more affordable production costs than the other industrial giants, including China and Brazil.
“U.S. factories can make goods at the same cost or even cheaper than those made in Eastern Europe, according to a Boston Consulting Group report on Friday. And it is now less than 5 percent cheaper to make goods in China compared with the U.S.,” according to the Los Angeles Times.
It’s a financial trend that has spread across North America with Mexico taking the lead, as well. As North American manufacturing costs decrease, global competitors are on the rise. [/show_to]