Manufacturing Outlook

September 19th, 2008 at 02:03pm Bob Trojan

Here’s a link to the latest monthly report on manufacturing from the Federal Reserve of Chcago….
http://www.chicagofed.org/economic_research_and_data/files/cfmmi_july2008.pdf
I heard William Strauss from the Federal Reserve in Chicago give Boone County a review of the economy.  The meeting was open to the public and there must have been 50-60 people in attendance.  Although he covered various economic data and topics, he made a number of points about manufacturing:

1. Manufacturing output is slightly below similar period of 2007.

2. Manufacturing Output is at record levels.  Output may be down on those producers of consumer goods, but is up for those making equipment for industry.  Example cited was the large $10 million CAT truck.  CAT is also expanding their facilities for these vehicles and their backlog goes into year 2012!

3. Although Lite vehicle and lite truck sales are falling 11% and 19%, car sales are falling only 3%

4. Between Detroit Big 3 auto and the New Domestics (Honda, Toyota, etc) production in the U.S> from 1980 to now is about the same.

5. Buy America: Ford Mustang has a 70% U.S. content, Toyota Sienna has a 85% U.S. content.

6. While the Big 3 production and sales are declining over the past 28 years, U.S. made sales of Honda, Toyota, Nissan and the others is growing.

7. Productivity is key and recently it has been averaging twice the historical rate.

In all, what I heard didn’t make me want to jump out of the nearest high rise building.

Entry Filed under: People, Productivity, Education & Training, Economy