With the end of the year approaching, many professionals in the manufacturing industry start making predictions about the future. However, intelligent estimates about tomorrow begin by understanding what's happening today. Manufacturing is an integral piece of the economy, reflecting a demand for goods and employing many of the most skilled workers capable of manipulating complex circuitry, equipment and other items necessary for production. A recent article from The Wall Street Journal helped illuminate the trajectory in the manufacturing sector by specifically looking at the equipment factory orders needed to maintain operations.
Machine shop operators optimistic about the future
The WSJ indicated car sales, appliances and aviation products are slated to increase in demand in the coming year. Machine shop operators welcome this news because all of these products require metal cutting and shaping instruments. John Johnston, owner of Michigan-based Electro-Way Co. and International Manufacturing Technology Show attendee, operates an advanced machining operation. The company uses equipment that bends metal using electrical currents instead of more traditional shaping tools. Furthermore, the company will purchase new equipment near the beginning of 2015, Johnston explained.
At the same time, Japanese manufacturer DMG Mori Seiki president Mark Mohr stated his company anticipates U.S. sales will grow 4 percent through the remainder of 2014 and likely by more than 10 percent next year. The 2013 winter proved detrimental to many machinery manufacturers, as the cold weather brought the anxieties of many purchasers and limited growth. The WSJ cited data from Gardner Research saying spending may rise 37 percent next year.
Durable goods on the upswing
News of rising numbers for factory equipment orders comes on the heels of news that durable goods – bolstered by the aerospace sector – are heating up. Bloomberg reported planned purchases for commodities meant to last more than three years rose above 22 percent after June's figures came in. This number reflects a strong demand for new airplanes and automobiles, which should be good news for those in manufacturing industry.
However, renewed interest in these kinds of merchandise means manufacturers will need to employ workers with advanced knowledge of machining processes. Modern factory equipment requires technical skills that are often hard to find. Engineering recruiters can help businesses locate employees with the necessary abilities to sustain the commercial demand for durable goods.