Made In America: For Manufacturers, Shale Boon Is A Gas

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FOR MANUFACTURERS, SHALE BOOM IS A GAS
A new report from consulting firm PriceWaterhouseCooper (PwC) paints a positive scenario for American manufacturers if energy trends continue, particularly in the thriving natural gas boon.

U.S. shale gas development continues to mature rapidly, the report notes and it says manufacturing is receiving a big boost through significant cost savings and job creation.

According to the PwC analysis, the most likely beneficiaries in a scenario of continued low natural gas prices and high yields include energy-intensive manufacturing sectors such as metals, as well as those sectors — most notably chemicals and petrochemicals — which use natural gas as a feedstock.

Other big takeaways:

• Annual cost savings for manufacturers of $22.3 billion in 2030 and $34.1 billion in 2040.
• 930,000 shale gas-driven manufacturing jobs created by 2030 and 1.41 million by 2040.

“There’s no doubt that the shale gas boom in the U.S. helped trigger a resurgence in manufacturing,” says Robert McCutcheon, U.S. industrial products leader for PwC. “Assuming shale continues to serve as a catalyst for the manufacturing sector, we revised our cost savings and longer-term employment estimates significantly upward, and could see those numbers go even higher as more businesses and global interests look to exploit shale opportunities,” he said.

The PWC study – titled “Shale Gas: Still a boon to U.S. manufacturing?” – can be accessed here.

STATE EMPLOYMENT REPORT INDICATES POSITIVE TREND FOR MANUFACTURING JOBS
Arkansas’ November 2014 non farm payroll report held some good short-term news for the state’s manufacturing sector. Overall manufacturing employment stood at 157,300 in November, up 500 from the previous month and 5,400 workers from the previous year.

The strength comes from durable goods versus nondurable goods. Durable goods manufacturing accounted for all of the month-over-month gains, while it also represented 4,600 new workers during the past year. Nondurable goods was unchanged in employment month-over-month, while the sub-sector posted an 800 job gain from last November.

STABI-LOC EXPANDING IN SPRINGDALE
Construction is underway for a new 30,000 square foot facility for Stabil-Loc Inc. in the Springdale Industrial Park. With an investment of more than $1 million the new facility will allow the company to add needed manufacturing space and double its workforce in the coming year.

“We’re excited about this growth opportunity since moving the business to Springdale from Kansas City just two years ago,” said Steve Patton, company founder. His son Kyle Patton, president of Stabil-Loc, said the new building is needed as they now operate in just 10,000 square feet of rented space near their building site at 1948 Turnbow Ave.

Stabil-Loc specializes in the engineering, manufacturing and installation of foundation piering systems for residential and commercial applications. He said the company recently restructured to allow for franchise dealerships who can sell their patented piering sytems, which should provide a steady boost to the Springdale manufacturing center’s work orders.

“We have 60 franchisees around the country and this new facility will make a major difference in our ability to serve our customers,” Kyle Patton said.

BUSINESS LEADER CONFIDENCE SURVEY SET TO GO
Talk Business & Politics, the Arkansas State Chamber of Commerce, and CEG Partners are beginning our third round of surveying the state’s top company leaders for our 2015 Business Leader Confidence Survey.

If you are in leadership in your organization – CEO, COO, CFO, company president, division manager, or a small business owner – we want your input. If you or your company want to participate in our end-of-the-year survey, reply to this email and TB&P Editor-in-Chief Roby Brock will send you a link to the survey.