Manufacturing Output Rises in the Us

620 WordsApr 23, 20143 Pages
An economic revival is here according to an article in The Atlantic titled “America’s Coming Manufacturing Revolution”. In the author’s own words, “The combination of lower energy prices, innovative information technologies, and advances in robotics and materials science are powering a manufacturing revolution that will reinvigorate the U.S. economy,” (Naím, Apr. 21, 2014). Bold words considering the recent financial crisis and drama in the geopolitical arena, but is there enough evidence to back his claims of this so called “manufacturing revolution”? Several news outlets are reporting gains in manufacturing operations such as increases in labor and use of factory space. Using this information, I hope to describe the elements used to…show more content…
The Federal Reserve Bank assessed “potential being used at factories, mines and utilities in the U.S. reached 79.2 percent in March”. Comparatively, the national average from 1980 until now is 79.4 percent (Chandra, Apr. 20, 2014). According to an article in Reuters, this is the highest capacity utilization since June 2008. (Nawaguna, Apr. 16, 2014) Incidentally, as resources are used more efficiently, manufacturing output will increase. Higher labor costs and allocation of factory space are excellent indications that manufacturing output has indeed gone up within the United States. However, I would not consider it a “revolution” by any means because most of the data suggests this is only a gradual upward trend and hasn’t changed any aspects of business. Although, if this upward trend continues, we can expect more job openings, greater use of factory space, and more “made in the US” products floating up around the markets of the world. Luckily, accountants aren’t paid to forecast so my essay ends here. References Chandra, Shobhana, Manufacturing Gains in U.S. as China Stalls: Global Economy, Bloomberg, April 20, 2014. 19/manufacturing-improves-in-u-s-as-china-stalls-global-economy.html Naím, Moisés, America’s Coming Manufacturing Revolution, The Atlantic, April 21, 2014.
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