The latest numbers from March 2014 supports recent reports regarding yearend confidence for the revival of U.S. manufacturing. According to Bloomberg News, “The Institute for Supply Management’s index increased to 53.7 from 53.2 a month earlier, the Tempe, Arizona-based group said today. Readings above 50 indicate expansion. The median forecast in a Bloomberg survey of economists was 54.” These numbers represent a strong start for Q2.Among the key players in the manufacturing revolution are carmakers, including Ford, Toyota, and Chrysler. U.S. gains have positively impacted international carmakers as a bonus, economists say.
Asian stocks experienced gains in response to U.S. growth as well. Businessweek reports, “Nissan Motor Co., a Japanese carmaker that gets 34 percent of its revenue in North America, added 2.1 percent.” However, analysts still put the United States at the top of the current car manufacturing chain as Toyota puts its brand into overdrive. European stocks have followed suit.
Last year, Chrysler and other auto manufacturers were nearing recession-end lows with deals brought forth to bail out former U.S. car-maker juggernauts. Early in December 2013, GM’s final shares were sold to recoup the money invested in its bailout.
Even so, last year, analysts were already predicting the return of U.S. manufacturing with the Washington Post citing a Chinese tech supplier’s move to bring its operation on American soil.
Low-end tech manufacturing for computer parts and other small devices haven’t been a huge boom for the United States in the recent past. For this reason, currently, economists seem to be focusing on the gains brought forth by high-end manufacturing.
For now, it’s clear that the future of U.S. manufacturing will lean heavt on the gas pedal as the implementation of President Obama’s new transportation bill, announced Feb. 18, promises to drive even more growth for the auto industry as it speeds up to Q2.