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High-level analytical models from Armada and MN&A show that the outlook for machinery manufacturing over the next 18 months is likely to go on a roller coaster ride. The latest forecast released in the Armada Strategic Intelligence System (ASIS) shows machinery manufacturing growth of 7.91% in 2021. This comes after a 1.2% contraction rate in 2020.
Normally there is little controversy over infrastructure development. In fact, this is the one area where
is nearly always evident. Who can argue with the need for good roads, reliable bridges, functioning airports and seaports, and so on? Economic development is tied to infrastructure and so are jobs. What’s not to like? The issue is never about the need or value, it’s about how it is paid for. The fact is that infrastructure is handled by the government at some level – there are very few private roads, bridges, airports, and the like. That means that revenue must be devoted to the task and that either means taxing or borrowing, neither of which are popular options. It becomes a matter of value.
The definition of renaissance is “rebirth” and there are many who have been asserting that manufacturing in the US has been undergoing such a rebirth in the last few years. This is a position that seems to be justified when one looks at the investment community as well as the performance of the sector. The data from sources such as the
Purchasing Managers’ Index
Credit Managers’ Index
, Federal Reserve reports and dozens of specific industry reports all support the assertion that manufacturing in the US has rarely been in better shape than it is now. There are several reasons for this resurgence:
There are few sectors of the economy as complex and challenging as manufacturing, The competitive threats come from all directions and all the time. Staying ahead requires knowing what is around each corner - whether it is a threat or an opportunity. The ASIS projects into the future with a carefully constructed set of models that maintain over 97% accuracy so that manufacturers can anticipate. It takes time to be ready for these competitive threats - the ASIS provides that time.
Watch John Nelson from Morris, Nelson & Associates along with Chris Kuehl and Keith Prather from Armada Corporate Intelligence review the monthly IPMAN report.
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