According to survey data released by Gardner Business Media, American manufacturers have rebounded from the Great Recession. In fact, the Index of Durable Goods showed that production of durable goods is at an all-time high.
This surge in production means manufacturers are investing in new metal cutting technologies and machinery to the tune of a forecasted $7.442 billion in 2014. The study points to 3 key reasons for these investments:
- Capacity utilization fell to about 60% during the depths of the recession. Today that figure is 77% and climbing steadily. This indicates a need for additional capacity, especially for specialized types of manufacturing.
- Automation continues to gain traction as companies see adding robotics, pallet systems, bar feeders, automatic unloaders and other peripherals as essential to reduce part costs to remain competitive and protect profit margins.
- Reshoring is gaining favor as American productivity, rising foreign labor costs, stable energy costs and the spreading concept of localizing resources all make it more attractive to bring production back home.
The Gardner survey forecasts that manufacturing facilities of all sizes plan to make significant capital investments. Here are the key industry end markets and the expected investment by manufacturers who service them:
- Automotive ($647,000,000)
- Aerospace ($193,000,000)
- Electronics ($442,000,000)
- Oil & Gas ($271,000,000)
- Medical ($304,000,000)
- Die/Mold ($549,000,000)
Click here for more details on the survey.
And if you’re contemplating investing in manufacturing equipment to improve your productivity, profitability and competitiveness, the applications and automation experts of Gosiger bring 90+ years of machine tool and manufacturing experience to helping customers improve their processes and become even more successful. Visit www.gosiger.com or contact Gosiger for more information.