The Manufacturing Sector on a Tear

Posted by Kathleen Schmatz on February 18, 2013

“The manufacturing sector is on a tear,” one economist recently said.

For the first time in many years, it’s manufacturing that is being relied upon to lead the economy out of recession. A recent article in reported, “American factories are humming and driving the economy forward.”

Another economist said, “After losing six million manufacturing jobs between 2001 and 2009, the American manufacturing sector has re-emerged as a beacon in an otherwise lackluster economic recovery.”

No one thinks manufacturing will return to its peak of the 1950s, but since the recession began improving a little over two years ago, factories have been contributing disproportionately to the recovery in hiring and the overall economy.

This manufacturing resurgence trend is very good news for the automotive aftermarket industry, all industries and all Americans. Manufacturing in the U.S. produces $1.8 trillion of value each year, or 12.2 percent, of our GDP. Manufacturing employs 12 million Americans.

And just this morning, I read about recent studies that found approximately 40 percent of U.S. manufacturing firms are considering moving their manufacturing plants back to America. Clearly, re-shoring is an encouraging trend that will impact manufacturing’s role in driving economic growth.