A Dual Personality: Industry Trends & Analysis

Numerous factors determine whether a manufacturer is profitable or not.

Lately, one of those factors for a U.S. manufacturer is whether it is is focused on the domestic market or pursuing a global approach.

The impact of a manufacturer’s market focus was the subject of an article published May 23 in The Wall Street Journal by Lisa Beilfuss, titled “For U.S. Manufacturers, a Split Picture.” In the article, she wrote, “Global industrial giants are struggling under the weight of a strong dollar, reeling commodity markets and weak demand in emerging and advanced economies alike, from Brazil to Europe to China. But domestically oriented U.S. manufacturers are faring better, with steadier business buoyed by the relatively brighter auto, housing and job markets.”

Economic indicators shed light on this split condition. The U.S. unemployment rate recently dipped to 4.7 percent, and its gross domestic product rose 0.8 percent in the first quarter after increasing 2.9 percent last year. While those numbers aren’t spectacular, they show the U.S. economy is performing better than many other nations, such as a couple of the BRIC countries.

When exporting, Brazil, Russia, India and China are frequently mentioned as target markets. For example, after attending the 2012 Global Forecasting & Marketing Conference, I wrote about a panel presentation that highlighted exporting to BRIC markets as a growth driver and a way to avoid boom-to-bust cyclicality because it is rare that all markets are down at the same time.