Industrial Insight

MAPI forecast | April 7, 2014

MAPI forecasts manufacturing production growth of 3.2% in 2014, up from the 2.3% rate in 2013. And production growth will continue in 2015, predicts MAPI, to reach 4.0%, down slightly from the organization’s December 2013 forecast of 4.1%.

“Factors that were dragging down growth (mainly tax and other policy issues) were absorbed in 2013 and will not worsen over the next two years,” says MAPI Chief Economist Daniel J. Meckstroth, Ph.D. “Consumer-driven manufacturing growth will be relatively stable and supported by employment gains. Households have low debt burdens and their wealth is rising because of higher stock and home prices.

“Business investment–driven manufacturing is responsible for nearly all of the acceleration in production growth,” Meckstroth notes. “Firms have lots of cash, are profitable, and have relatively high utilization rates. Importantly, the two-year federal budget and debt ceiling agreement substantially reduce uncertainty. Now that the Eurozone has come out of recession and emerging markets seem more resilient, export activity should pick up and provide a boost to business sentiment.”

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I'm the executive vice president for a steel casting trade association, the Steel Founders' Society of America. I've got a crazy wife, five crazy children, three crazy people that married into the family, and two crazy fun little grandsons.

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