US manufacturing industry growth

NAM Q3 Manufacturers Outlook Survey shows the highest rate of optimism for 3 consecutive quarters in 20 years. 

CERRITOS, California- October 12, 2017- The National Association of Manufacturers (NAM) recently released their Manufacturers Outlook Survey for the third quarter of 2017 containing updated information on manufacturers' perception of the current state of the industry and its growth within the following year. As the U.S.' largest manufacturing association, NAM represents small to large manufacturers throughout the country and "...accounts for more than three-quarters of all private-sector research and development in the nation" (NAM). Data from the survey is pulled from the responses of approximately "...524 manufacturers from all parts of the country, in a wide variety of manufacturing sectors and in varying size classifications" according to the report.  

In their Third Quarter Manufacturers Outlook Survey, NAM reported an average optimism rate of roughly 90% among manufacturers. This is the highest record of optimism recorded since the survey began roughly 20 years ago in 1997. Comparably, the third quarter average in 2016 was only 59.7%. Furthermore, the positive trends continued throughout the report in regards to exports, production, sales, and more. Respectively, the average expected increase in sales and production was 4.5%, and overall positive outlook for business was 89.8% among manufacturers. 

Moreover, the increases in sales and production anticipated by these manufacturers also produced an anticipated increase in labor demand. Thus, surveyed manufacturers expected to increase their full-time employees by an average of 2.2%, resulting in a matching 2.2% average increase in employee wages excluding nonwage compensation. This reinforces NAM's prediction that the manufacturing industry, which contributes an estimated $12 trillion to the U.S. economy annually, will create roughly 3.5 million jobs over the next decade. 

Similarly, the NAM Manufacturing Outlook Index also indicates strong levels of confidence in business conditions year-to-date, rising from 60.8 in the second quarter to 61.0 in the third quarter. By comparison, the index stood at 41.3 one year ago.-NAM Manufacturers' Outlook Survey Third Quarter 2017

Overall, this quarter's Manufacturers Outlook Survey reveals a positive shift in the industry's outlook, and an anticipation for growth or revival in regards to production, sales, and staffing. Specifically, data within the report suggests that production within the manufacturing industry could grow as much as "...3.6 percent between now and the first quarter of 2018". With increasing optimism in the industry, SMEs in the U.S. have the opportunity to explore business expansion. Toolots is uniquely positioned to offer SMEs assistance expanding their distribution network domestically, or entering into the global market by providing assistance overcoming barriers such as inefficiency, slow innovation, and high prices. For additional information, contact us via phone at (844) TOOLOTS or via email at sales@toolots.com. 

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Ride the wave of optimism and fuel your company’s growth with Toolots, getting products in the hands of new global customers

CERRITOS, Calif - April 4, 2017 - With the Trump administration slashing federal regulations on small business growth and an “America First” focus on trade, manufacturing and homegrown industry, the National Association of Manufacturing is reporting the largest boom in United States manufacturing industry confidence in decades.

Ninety-three percent of U.S. manufacturers surveyed by NAM, the oldest and largest manufacturing association in the country, reported a positive outlook for the future. Chief Executive Officer Jay Timmons said the survey of industry executives polled higher than it has throughout the organization’s history. Respondents were also asked whether they believe the administration is on the “right or wrong track” as it relates to manufacturing.

“Just a month before inauguration (Jan. 20), the ‘right track’ number was only 26 percent; today it’s over 60 percent, so that’s huge growth,” Timmons said. The survey of manufacturing executives takes place each quarter and spans 14,000 members, according to NAM.

White House officials cited the survey during the March 31 press briefing, expressing confidence that the administration’s actions on trade - namely leaving the Trans-Pacific Partnership and recent executive orders - are helping to nurture that optimism.

“That’s a 20-year record high that’s more than 35 points higher than where it was the same time last year,” the White House press secretary said, referencing the same poll taken last year that gauged optimism within the industry at only 57 percent. “The rising confidence stems from the belief the new administration will bring much needed regulatory relief...We’re making it easier to do business, and we’re just at the beginning of this process.”

While it is taking time for the optimism to translate into quantifiable results on the ground, small, medium and large manufacturers have invested hundreds of millions of dollars, billions in total, towards bolstering American factories and a stronger domestic workforce. Riding the wave of optimism are countless companies purchasing new machinery to set ablaze their U.S. production capabilities and hiring employees to sustain increased operations.

How Toolots can help

As optimism rises across the country based on the NAM survey, more than a dozen American manufacturers have signed up to sell their Made in USA products on the Toolots online marketplace within the last three months. Toolots is a Southern California-based distributor of industrial machinery, equipment and technology that helps companies break into new markets, domestic and international. With strategic locations in California, Texas and China, Toolots does the heavy lifting to simplify logistics and fulfillment for consumers and vendors, resulting in a hands-off, worry-free approach to selling industrial equipment.

Many small to medium-sized U.S. manufacturers are in need of such a solution to get their innovative products in the hands of new customers. Toolots provides a low risk method to increase distribution of manufacturing equipment, and a comprehensive solution for sales, marketing, fulfillment and after-sales services.

With growing optimism among manufacturing executives and increasing opportunities within the labor force, small to medium-sized companies have an opportunity to provide equipment in high demand both here in the U.S. and abroad. In countries like China, factories are willing to pay a premium for Made in USA products to increase productivity and reduce operational downtime often associated with lesser-quality manufacturing equipment.

Breaking into the Chinese marketplace is not an easy task, especially for the small companies that comprise a majority of the U.S. manufacturing industry. Our logistics pipeline has served Toolots and related enterprises well for years, and our ongoing partnerships with factories across China and the United States help to build a bridge to connect their manufacturing industries. Through Toolots, partnering manufacturers are able to secure sales directly with factories in need of their products - not needing to spend time marketing, selling and distributing their goods in newer unfamiliar markets on their own, risking loss of profit, productivity or even product.

As an industry, American manufacturing employs over 12 million and contributes more than $2 trillion annually to the U.S. economy. The manufacturing industry has the “largest economic impact of any major sector” and accounts for more than 75 percent of all private-sector research and development, according to NAM. Greater than three-quarters of all U.S. manufacturing firms are classified as small businesses with fewer than 20 employees.

For more information on how working with Toolots could fuel your company’s growth during this period of record-high optimism within the U.S. manufacturing industry, contact our Global Commerce Services team today at (844) 866-5687 or send inquiries to cfoy@toolots.com.