There is a resurgence of manufacturing in the United States as the allure of offshore sourcing begins to fade. Several studies released this year by major consulting firms, and articles in a variety of publications have noted the rise in U. S. production. Examples range from Fortune 500 giant Caterpillar Inc. to toy manufacturer Wham-O Inc., which are either expanding operations here, or bringing back production from offshore suppliers. Die casters are seeing a similar trend, with nearly a quarter of NADCA members reporting they gained new business that had previously been sourced offshore.
Resolving the many issues affecting U.S. manufacturing and domestic production is a difficult problem affected by many economic, political and even social factors. The complexity of the issue precludes any quick fixes. But the recent trend to onshore production indicates that many business leaders are beginning to more fully understand all of the ramifications of moving business offshore. To read the complete White Paper on this topic please click here.
Recent Data On US Manufacturing Lessens Concern Of Another Recession
Bloomberg News (11/11, Jackson, Feld) reported, “Machinery stocks may outperform the market through the end of the year as new orders rebound, helping to defy concerns about another US recession.” US “manufacturers booked $32.6 billion in new orders for machinery equipment in September, the most since July 2008, according to data from the Census Bureau released Oct. 26. The Standard & Poor’s Supercomposite Machinery Index, which includes Caterpillar Inc. (CAT) and Deere & Co. (DE), has gained 26 percent since Oct. 3, while the S&P 500 has risen 13 percent.” Ann Duignan, an analyst at JPMorgan Chase & Co., said that “there’s ‘no evidence’ of a collapse in North American manufacturing as shipments still are growing.”
Honda To Expand Production Of Light Trucks, Engines At Alabama Plant
Bloomberg News (11/15, Ohnsman) reports, “Honda Motor Co., Japan’s third- largest automaker, will spend $84 million and hire 100 more workers to expand production of light trucks and engines at its assembly plant in Alabama.” In a statement, Honda said that “the investment will boost annual capacity for the Lincoln, Alabama, plant to 340,000 vehicles and engines by 2013 from 300,000 now.” Bloomberg News notes, “Asian automakers including Honda are expanding output capacity in North America as US sales recover from a recession in 2008 and 2009. Demand for new cars and trucks grew 10 percent this year through October, and most companies and analysts are forecasting total sales of 12.5 million to 13 million vehicles in 2011.”
The AP (11/15) reports, “The $1.5 billion plant began production with the Odyssey minivan. The plant employs about 4,000 people and is the sole North American producer of the Odyssey, the Pilot SUV and the Ridgeline pickup.”
The Birmingham Business Journal (11/15, Poe, Subscription Publication) reports, “The latest investment, which brings Honda’s total investment this year up to $275 million and 140 jobs, is tied to the addition of the Acura MDX luxury SUV to the plant’s production lineup, the company said.”