The manufacturing industry is currently showing its resilience and is gaining momentum heading into the fourth quarter of the year. Not only is this news important for the sector itself, but also for the overall health of the U.S. economy. The housing market hasn't picked up the pace yet, but factory output is helping push the country in the right direction.
Economic news positive for U.S. manufacturers
One of the leading financial data firms, Markit, recently released the "U.S. Manufacturing Purchasing Index," a report that looks at multiple aspects of the industry to assess its current levels. Reuters, citing data from the study, reported September's growth rate figures matched those for August, which reflected the fastest expansion in roughly four years. This information is bolstered by the fact that hiring and payrolls seem to be on an upswing as well. The employment sub-index jumped from 54.6 last month to 56.6 in September.
The Markit report uses a scale with which the dividing line between expansion and contraction is 50. August and September both reached a score of 57.9, which signals strong growth. Chris Williamson, chief economist at Markit, explained the third quarter of 2014 has been one of the most optimistic periods of time for those in manufacturing. It's also a good sign for broader economic benchmarks, as manufacturing reflects about 12 percent of the total economic activity in the U.S., Reuters said.
How can employers take advantage of the situation?
There are regional differences among the strong national indicators. For instance, the Eastern U.S. has witnesses strong employment trends. For example, there has been an expansion in hiring, wages have risen incrementally and the average hours worked during the week have been extended.
A healthy manufacturing industry is a good for enterprises, but there's a caveat to the positive outlook. In order to sustain growth, employers depend on quickly and efficiently sourcing highly skilled employees. Manufacturing recruiters help organizations avoid issues stemming from the talent gap. Companies that depend on research and development, rapid production techniques and supply chain management are often at a loss seeking out strong candidates. As a result, they lose out on achieving their full potential because of inefficiencies in recruitment.
With every month, the manufacturing conditions in the U.S. improve. However, the foundation of expansion is having the right people in important positions.