Us Manufacturing Recovery

Good Essays
It is no secret that the U.S. manufacturing sector has been in decline over the last 30 years. But a strong rebound in the production of durable goods such as cars and electronics, has helped revive the manufacturing sector and stimulated recovery from the recession. As early as 2013, manufacturing output only 4 percentage points was below the pre-recession peak level. A comparison between countries shows that America has fared better than most other G7 countries except Germany. But the recovery in Germany has stalled since mid-2011, while the United States is gaining momentum. An uneven recovery Our recent study, The U.S. Manufacturing Recovery: Uptick or Renaissance , discusses the U.S. manufacturing sector and demonstrates that, although they are impressive, the overall numbers of U.S. manufacturing recovery mask important differences among producers of durable goods and non-durable goods (such as food and clothing). The recovery from the recession has been driven almost exclusively by a surge in the production of durable goods. In contrast, nondurable goods have had a lackluster performance, its production is reaching 10% below pre-recession and only 6% above the minimum levels. Even within the durable goods sector, growth rates of production have varied substantially. Cars, computers and electronics and machinery have been the engine of most of the recovery. However, spikes in the production of machinery and automobiles have strong cyclical components (both products fell sharply during the crisis), while growth of the production of computers and electronics has been constant over the last decade. The energy revolution What factors might explain the sharp rise in the production of durable goods in the United States? The lowe... ... middle of paper ... ...ime / cost, cultural affinity and better guarantees the protection of industrial property. Some of the obstacles to fight, as has been repeatedly mentioned, are the lack of infrastructure development, the eradication of monopolies, the activation of the internal market, security and reforms in education and labor. To succeed in these areas would increase FDI and thus projects in key economic areas. Manufacturing currently receives about 40% of the resources from abroad. The current administration has the historic opportunity to make these adjustments in the economy and support the development from the production of goods and services with high added value. In order to achieve the 6% estimated by the Secretary of Finance, would hardly solve the basic employment opportunities and wealth generation aimed at social welfare needs, but certainly it would be a good start.
Get Access