Manufacturing
The president has touted the resurgence of manufacturing in America in two SOTU speeches. He has stated among other things that our manufacturing sector is adding jobs, 620,000 new manufacturing jobs over the last four years, for the first time since the 1990s. This resurgence is fueled by abundant natural gas production, which the President stated in a trip to the Marcellus Shale region outside Pittsburgh on January 30th. At this event, President Obama and US Steel CEO Mario Langhi provided some much-needed context into how the steel manufactured there is used in our daily lives. More specifically, the steel made at this facility is being used to manufacture pipelines needed to bring natural gas to our homes. And while the steel industry manufactures and provides pipelines, the natural gas industry has supplied steel plants with cheap natural gas, which keeps production costs down. Interesting that the President takes credit for increased manufacturing that largely comes from natural gas derived from fracking which he and his supporters abhor via pipelines that he does not approve. He says his administration has launched two hubs for high-tech manufacturing. One is in Youngstown, Ohio and is focused on 3-D printing and one focused on energy-efficient electronics in Raleigh, North Carolina. He has announced the next two advanced manufacturing hubs. One is in the Detroit area, and the other is in Chicago, Illinois. All these hubs are partnerships that bring together companies and universities to develop cutting-edge technology, train workers to use that technology, and then make sure that the research is translated into real-world products made by American workers. Sound good? Well it is supposed to sound good. But doe sit make a difference or just spend money? We will have to wait and see.

Factory Construction Surges

9/30/14
from NCPA,
9/30/14:

There was zero growth in spending on factories in 2013, as American factories have been in decline since 1998, and many producers have moved offshore. However, USA Today reports that the United States has seen a 12 percent increase in spending on new or renovated factories in 2014. According to the Department of Commerce, the higher-than-expected growth seen by the United States in the second quarter was in large part due to the rise in spending on new factories. Why the new spending? - Auto sales have increased, leading manufacturers to build new plants or renovate their old ones. - The same trend has taken place due to the recovery within the housing industry and the oil and gas boom. - USA Today reports that factory output is up 3.2 percent already in 2014. As of August 2014, factories were running at 77.3 percent of capacity. That figure is close to the levels seen prior to the recession and is an increase from 63.9 percent in 2009. As companies build additional factory space to accommodate increased demand, they tend to hire more workers, spurring employment. While manufacturing employment increased 88,000 during 2013, it has already increased by 105,000 in 2014.

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