Considering its development and consistency, the manufacturing sector in the United States showed significant growth.
Manufacturing companies added almost 467,000 more employees in the nation’s manufacturing over 12 months. In addition, the Federal Reserve said that in September, manufacturing production reached its highest point in 14 years. The achievement occurs while the nation’s economy experiences a slump marked by high-interest rates, rising oil prices, and investors’ poor trust in the market. However, the manufacturing industry continued to manufacture computers, candy bars, and vehicles to meet customer demand.
A recession is imminent, as predicted by Wall Street analysts and economists. The manufacturing sector, however, is not deterred by the current circumstances from expanding and getting better. Although managers remain hopeful they may grow manufacturing despite rising demand, labor shortages and supply interruptions pose a challenge for the business.
The manufacturing industry in 2022
Sales for the auto industry exhibited a back-and-forth pattern. Moreover, the scarcity of semiconductors is primarily responsible. Nevertheless, despite the obstacles, the industry is capable of outperforming expectations, as seen by the 1% increase in output in September.
“Since we bought them, we’ve grown the company from 33 employees to 53. We’ve invested in new technology, robotic press brakes, and new bathrooms for the employees. It’s an aggressive push to reinvest back into the factory because we’re so enthusiastic and optimistic about the future,” said Drew Greenblatt, a manufacturing company, following its purchase of the Madsen Steel Wire Products factory.
Disruptions in semiconductor supplies
For the manufacturing industry, the interruption of the semiconductor supply still presents a challenge. During the pandemic, for instance, businesses had trouble locating sufficient supplies of semiconductors, although they are necessary for making automobiles. With the pandemic over, the situation did, however, start to improve. Nevertheless, according to corporate administrators, the state is still a far cry from being ordinary.
“I try to keep enough parts on the shelf. But if I have two on the shelf and I sell two, I can’t sell another one till I get a new one back. And with four or five months’ lead time, I can’t anticipate what I’m going to need that far in advance,” says Betty Jane Parrott, CEO of a family-owned business.
“A lot of the baby boomers retired during COVID, and they were the ones that had years and years of experience. We’ve been looking for qualified welders for probably a year. The skilled people, the trained people, are very, very hard to find,” she added.
Getting back on track
Over expectations, factories hired more people. Hiring 20,000 people on average every month is getting close to the employment levels from before the pandemic. Firms hired 27,000 new personnel in the industry in August and employed 22,000 more in September.
“Manufacturing is roaring back, the strongest manufacturing job recovery since the 1950s,” said President Joe Biden.
“Every president wants to increase manufacturing. But the future of jobs is in the service sector,” Betsey Stevenson from the University of Michigan said.
“We’ve become so much more productive at making things, and we just only need to spend a small share of our resources — our people, our time, our factories, our equipment — making stuff,” he added.
“We’re just seeing the demand. We want to have the best technology for our people to make it through potentially stormy times,” Greenblatt concluded.