Industry Trends & Analysis

U.S. factory output increased for a sixth straight month in February while consumer sentiment rebounded in early March, underscoring the economy's resilience even as growth appears to have slowed significantly in the first quarter. That was supported by other data on Friday showing a gauge of future economic activity rose in February to its highest level in more than a decade.

Having worked in manufacturing since 1992, I've learned many things about machine shop marketing and branding from fellow shop owners. Some spend, literally, no money on marketing while others spend a lot. I've also learned what works and what doesn't.

According to the U.S. Bureau of Labor Statistics' monthly employment report, 28,000 new manufacturing jobs were added in the U.S. in February—more than double the January number. Over the past 3 months, manufacturing has added 57,000 jobs. The rate of increase in February marked the fastest pace of manufacturing job creation since late 2014.

Economic activity in the manufacturing sector expanded in February, and the overall economy grew for the 93rd consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business. The February PMI registered 57.7 percent, an increase of 1.7 percentage points from the January reading of 56 percent. The New Orders Index registered 65.1 percent, an increase of 4.7 percentage points from the January reading of 60.4 percent. The Production Index registered 62.9 percent, 1.5 percentage points higher than the January reading of 61.4 percent.

While the Trump administration focuses on trying to bring back coal-industry jobs, the outlook for renewable-energy employment, including in manufacturing, has increased. Solar showed bright prospects in 2016 and the wind industry is picking up.

Georgia will see an influx of more than 500 new aerospace manufacturing jobs at Columbus-based Pratt & Whitney, which reportedly will invest $386 million into expansion.

Working in the bleak midwinter while the metalcutting sector transitions through a downturn sounds like a recipe for the blues. But it doesn't have to be. When things are a bit slow, it can be a good time to do some housekeeping and other chores around the shop that get put on the backburner during more active times. Investing in automation and other productivity-boosting equipment can also be wise during a soft stretch.

Down, but getting back up: December 2016 U.S. cutting tool consumption totaled $176.04 million, according to the U.S. Cutting Tool Institute (USCTI) and AMT — The Association for Manufacturing Technology. This total was up 4.4 percent from November's $168.69 million and up 12.5 percent when compared with the total of $156.49 million reported for December 2015, as reported by companies participating in the Cutting Tool Market Report collaboration. With a year-to-date total of $2.042 billion, 2016 is down 4.3 percent when compared with 2015.

AMT — The Association for Manufacturing Technology released its December 2016 U.S. Manufacturing Technology Orders Report this week, noting that orders finished 2016 down 4 percent compared to 2015. But the report also holds some good news: month over month data showed December orders up a whopping 20.6 percent compared to November.

The Robotic Industries Association has announced that in 2016 the North American robotics market broke all-time records for orders and shipments. During the year, 34,606 robots valued at approximately $1.9 billion were ordered in North America, representing growth of 10 percent in units over 2015.

Ohio is soon to benefit from new job-creating investments by a number of major manufacturers. The Dayton Business Journal reports that companies including General Motors, Navistar International and Whirlpool have announced projects that will add to the 885,539 manufacturing jobs the Buckeye State currently boasts.