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The latest news for the US economy is encouraging, but not fantastic. According to US World News, the US economy grew at 1.7% last quarter, picking up a bit from the 1.1% growth rate in the first quarter this year. Housing has continued to drive growth but latest data is hinting at a slowdown in the housing market. Manufacturing’s strong performance has been a major factor in growth rate.
The strongest areas in manufacturing are as follows:
Automotive: The automotive industry has always been strong factor in US economy, as the supply base for Automotive is long, deep and broad. Major increases in car sales have a strong ripple effect in component and raw material suppliers. Latest data shows a 5.5% growth rate this year, the best rate since 2007.
Energy: With the more demand on natural gas and advances in domestic oil production, the US energy industry is going to rival OPEC for world dominance. This has created a stronger demand for drilling and exploration machines, equipment and supplies providing some very strong growth for the heavy industrial equipment.
Industrial Equipment: Manufacturing in this area has experienced a 25% growth rate. Very little of this industry uses offshore resources. Another related area is machining, which is driven by the automotive, energy and industrial equipment industries.
Structural Metals Manufacturing: This area experienced a 23% growth rate in the last 12 months. Much of the demand due to energy and automotive, but industrial equipment is also driving that demand.
The biggest growth area in US manufacturing could be classified as “heavy manufacturing”, this area is also creating strong growth in material handling equipment. Automotive is also a strong driver for material handling equipment.
One common thread to just about all the above areas is that the final product tends to be large and/or more expensive. These are the type of products that Packnet is best suited for in developing custom packaging and crating solutions.