A Businessweek article today says:
Jan. 3 (Bloomberg) — Stocks surged, driving the Dow Jones Industrial Average to the highest level since July, and commodities rallied on signs of increasing manufacturing output around the world.
Hard to believe, maybe because it has been so long or maybe because there is still so much bad news out there, but we’ve been seeing it as well. Increasing Manufacturing, Increased Needs In Manufacturing, More Jobs, More Trickle Down.
More manufacturing is a really good thing and one of the best things we can see as recruiters. More manufacturing is a big plus for most other industries as well.
Todd Kmiec and Associates
Manufacturing has expanded concurrently with exports. With the weaker dollar, it is easier for American companies to produce at competitive rates. Exports have increased substantially over the past couple of years.
Manufacturing is increasing because companies realized it is getting more expensive to make it overseas and ship it back to US (quality management is a huge cost) and at the same time costs here have dropped to be competetive.
The argument most management made was to keep Design and Engineering here in the US while sending manufacturing overseas. The reality is Manufacturing and Design/Engineering go hand in hand and typically by moving manufacturing you lose the iterative process of design improvements (or atleast it becomes very cumbersome to manage).
Good sign, companies are making more here for customers in the US..