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MADE IN THE USA
We highlight economic forecasts , trends and challenges for U . S . manufacturers .
“ Manufacturing production is likely to exceed pre-pandemic levels in the third quarter of 2021 , with robust sales buoyed by pent-up demand , fiscal and monetary stimulus and economic recoveries in markets .”
In Dec 2020 , IHS Market forecasted the U . S . economy to start 2021 slowly and accelerate in the second half .
“ If another modest stimulus bill is implemented soon , and a highly successful COVID-19 inoculation programme is well underway by summer , full year real GDP growth is expected to exceed 4.0 per cent in 2021 , with a reasonably good probability of growth reaching above 5.0 per cent in the second half of 2021 . A more significant stimulus bill of more than US $ 900 billion would be expected to raise full year U . S . GDP growth to more than 5.0 per cent in 2021 . However , without additional fiscal stimulus , and if lockdowns are implemented to contain the latest surge of infections , real GDP growth is projected to be near 3.0 per cent in 2021 , with greater downside risks ,” said the analyst .
As the Biden Administration aims to significantly increase federal investment in renewable energy under the American Jobs Plan , the United States already ranks as the most attractive market for renewables investment , according to results from a new ranking by IHS Markit . Electric vehicle ( EV ) registrations in the U . S . in 2020 also reached a record market share of 1.8 %, demonstrating increased consumer interest for electric vehicles , according to further analysis .
Manufacturers ’ outlook survey
The US National Association of Manufacturers ( NAM ) brought out its second quarter 2021 manufacturers ’ outlook survey recently .
“ Manufacturing activity plummeted sharply as businesses grappled with the COVID-19 pandemic and the global recession in the spring of 2020 , but the sector has bounced back sharply since then . Now manufacturing production is likely to exceed pre-pandemic levels in the third quarter of 2021 , with robust sales buoyed by pent-up demand , fiscal and monetary stimulus and economic recoveries in markets around the world ,” said the report .
The Manufacturers ’ Outlook Survey for the second quarter of 2021 found that 90.1 % of respondents felt either somewhat or very positive about their company outlook . It was the fourth straight quarterly increase in optimism in the survey , with the outlook bouncing back from the 33.9 % reading one year ago , which was the worst since the Great Recession .
“ More importantly , this suggests that manufacturers had the strongest outlook in nearly three years , since the third quarter of 2018 , and manufacturers are predicting the highest levels of production , sales and job growth in Outlook Survey history ,” said the NAM .
While manufacturing remains a bright spot in the economy , there have also been significant supply chain disruptions in the marketplace
26 | sheetmetalplus . com | ISMR September 2021