What 2018’s Manufacturing Growth Means for the New Year
Hopefully, you are one of the manufacturers who was the beneficiary of significant growth in 2018. But whether you saw big gains or small ones, you may be wondering what this manufacturing growth will mean for 2019. What does the future of manufacturing hold? Will growth continue to rise, or will things level off or decline? Here are a few industry insights that may help you anticipate and prepare for the future.
Manufacturing Growth in 2019
Although one can never predict the future of markets with 100 percent accuracy, the good news is that signs point to continued manufacturing growth through 2019. U.S. manufacturing data indicates the likelihood of sustainable, continued improvement in the immediate future.
One example to note is the rise in orders for manufactured goods, especially durable goods, which are up almost eight percent from last year. While the growth rate may decelerate, many economists believe that manufacturing will continue to grow, perhaps as a consequence of recent tax cuts and deregulation.
The ongoing trade complications with China are naturally a cause for concern for manufacturing, but even under these conditions, the industry seems to be holding fast. If the trade situation with China can be sorted out in 2019, manufacturing may grow at an even greater rate.
How to Respond to Manufacturing Growth Trends
Just as in down markets, it’s important for manufacturing owners and managers not to lose their heads in the face of a positive growth market trend. Seeing an influx in orders may make manufacturers eager to increase productivity. This can be good to an extent, but it can also result in a rise in labor and material costs — which could undo all the positive gains if they are allowed to get out of hand. A measured response to this fortunate growth cycle is usually the best approach.
Manufacturing Growth and New Technology in 2019
Another question you may be asking is whether this growth makes it a good time to invest in new manufacturing technology. It’s important to be mindful of the fact that this growth could level off at any time. You don’t want to take yourself out of the game by restructuring your operations at just the time you could be profiting the most.
If a new technology seems likely to streamline your operations and lower costs in the future, now may be a good time to try implementing it. If the new technology you are considering will require a costly and time-consuming redesign and only pay off if growth rates continue to climb, though, you may want to proceed with caution.
A growth period can be a good time, however, to make sure all your machines are in good working order. Regular maintenance of your manufacturing equipment and repair when needed can help ensure you maximize the benefits of the growth period. For any manufacturing equipment repair and maintenance needs, you can always contact Global Electronic Services.