Newsletter Masthead
January 2011

US Manufacturing Outlook for 2011


  • Goldman Sachs forecasts real GDP to rise to 3.4% in 2011 and 3.8% in 2012 (up from 2.7% and 3.6%) in part due to extended jobless benefits and continued payroll tax cut extensions.


  • Business Productivity has declined to 2.5% in the 3rd quarter.  As productivity slows, companies have no choice but to hire employees to increase productivity. 


  • Real consumer spending increased to 2.9% in 4th quarter after growing 2.8% in the 3rd quarter.  Consumer spending accounts for 70% of US economy.


  • Purchasing Manager’s Index (PMI) is an accepted measure of US manufacturing growth with a number over 50 means manufacturing is growing.  The PMI index has been above 50 (growing) for 17 consecutive months.


  • Of the 18 manufacturing industries, 11 are reporting growth in December, in the following order: Apparel, Leather & Allied Products; Primary Metals; Fabricated Metal Products; Machinery; Computer & Electronic Products; Food, Beverage & Tobacco Products; Textile Mills; Plastics & Rubber Products; Transportation Equipment; Electrical Equipment, Appliances & Components; and Chemical Products.
Other Items:
  • Through all of 2010, the nation added 1.1 million jobs, or an average of 94,000 jobs a month


  • Nonfarm payroll employment increased by 103,000 in December 2010.  Manufacturing employment decreased by 10,000. Unemployment rate decreased to 9.4% nationally.


  • South Korean trade deal should increase US exports to South Korea from 68 billion/year to 79 billion/year.  This deal is believed to be a framework for additional export deals bringing together US manufacturers, unions and lawmakers.
These items show that US Manufacturing is going to come roaring back in 2011 driving the US economy.  So is your manufacturing operation ready to handle the growth?  Do you have scale up plans?  Do you have the right people that can help your operation grow?  Let me know what your outlook is for 2011.
Ben Moore
Agent Technologies, Inc.
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In This Issue

US Manufacturing Outlook for 2011

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Manufacturing Statistics January 2011


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Manufacturing Statistics 
1) Industrial production increased 0.8 % in December 2010.  For Manufacturing, output increased 0.4 % in December. Source: Federal Reserve Board

2) Nonfarm payroll employment increased by 103,000 in December 2010.  Manufacturing employment decreased by 10,000. Unemployment rate decreased to 9.4% nationally. Source: Bureau of Labor Statistics

3) Manufacturing Trade Deficit decreased to $38.3 billion in November on exports of $159.6 billion and imports of $198.0 billion.  Sources: Census Bureau, Bureau of Economic Analysis

4) New orders for durable manufactured goods in November decreased $2.6 billion or 1.3 percent to $193.7 billion.  Source: Census Bureau

5) Inventories of manufactured durable goods in November increased $1.9 billion or 0.6 percent to $319.1 billion.  Source: Census Bureau
Agent Technologies, Inc.
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