Exit and Growth Strategies for Middle Market Businesses

News From the Industrial Industry

By John Hammett | Nov 05, 2015

Industrials FactoryDespite a decline in industrial production of late, US manufacturing production is forecast to increase 2.1% in 2015 compared to 2014, according to the MAPI (Manufacturers Alliance for Productivity and Innovation) Foundation. Manufacturing production is expected to further accelerate in 2016, with a rise of 3.4% amid employment and income growth, which should spur consumer spending. Credit availability and low interest rates should help stimulate demand for expensive purchases like automobiles and housing. Non high-tech manufactured goods production – which account for 95% of the manufacturing sector – is forecast to rise 2.3% in 2015 and 3.3% in 2016. Production of high-tech goods is expected to increase 1.5% in 2012 and 6.1% in 2016. While overall manufacturing production is forecast to be strong, demand for oil- and gas-related products, such as oil and gas field machinery, is expected to remain weak.

Industry Indicators

  • Total US manufacturers’ shipments, which indicate industrial industry activity, fell 3.8 percent year-to-date in July 2015 compared to the same period in 2014.
  • According to data from the Interindustry Economic Research Fund, Inc. (IERF), an economic research group, revenue for the US manufacturing sector is forecast to grow at an annual compounded rate of 5% between 2015 and 2019, based on changes in physical volume and unit prices.
  • US durable goods manufacturers’ shipments of machinery, an indicator of demand for industrial machinery, fell 0.9 percent year-to-date in July 2015 compared to the same period in 2014.
  • US steel mill product prices, an indicator of commodity steel costs for industrial machinery manufacturers, fell 14.1 percent in August 2015 compared to the same month in 2014.

Read the Entire Industrials M&A 4th Quarter Newsletter Here

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