Made In America: Manufacturing Hiring, Wages Improving Regionally
by June 14, 2015 8:16 am 96 views
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BEIGE BOOK: MANUFACTURING HIRING, WAGES IMPROVE IN EIGHTH DISTRICT
The most recent federal Beige Book report for St. Louis’ Eighth District shows mostly positive results as manufacturing companies continue to add workers and boost wages.
Several manufacturing companies reported plans to add workers, expand operations or open new facilities, while a smaller number reported layoffs across the Eighth district that includes Arkansas and portions of Illinois, Indiana, Kentucky, Mississippi, the eastern half of Missouri and West Tennessee.
Firms in transportation equipment, furniture, food and beverage, and machinery manufacturing plan to hire new employees and expand operations. In contrast, firms that manufacture wood products and primary metals reported plans to lay off workers or close facilities. News from plastics and rubber products manufacturers was mixed, with district firms reporting both positive and negative outlooks for hiring.
Sixty percent of contacts indicated wages were higher during the past three months than during the same period last year; the remaining contacts indicated that wages remained about the same. Half of those contacts reported that employment during the past three months was unchanged from the same period last year, while 40 percent reported employment was higher or somewhat higher, and the remainder indicated a slight decline.
To see the full report, click here.
WAL-MART U.S. MANUFACTURING PUSH REMAINS ‘VERY STRONG’
Michelle Gloeckler says Wal-Mart remains focused on helping return manufacturing jobs to the U.S., with the number of success stories growing and the 2015 manufacturing summit being moved to Bentonville to better connect buyers with products “that are ready to go.”
“It is still alive, well and very strong,” Gloeckler, executive vice president, consumables and health and wellness and U.S. manufacturing lead, said when asked about Wal-Mart’s focus on its highly-touted manufacturing push last week. Read more here.
U.S. AUTO SALES AT 14-YEAR HIGH
Car sales could put the U.S. auto industry well on its way to delivering 17 million new vehicles this year — a level unseen since 2001, according to industry reports.
New vehicle sales are expected to decline 1% year-over-year to a total of 1.59 million units in May 2015, resulting in an estimated 17.3 million seasonally adjusted annual rate (SAAR), according to Kelley Blue Book.
“May sales will reach the highest total year-to-date, and could remain the highest until December of this year,” said Alec Gutierrez, senior analyst for Kelley Blue Book. “While we expect an overall decline in volume versus last year, the difference is the result of one fewer sales day from May 2014, and total SAAR will reflect year-over-year improvement. May typically is a strong sales month, as consumers take advantage of warmer weather and advertised deals for the extended Memorial Day sales weekend.”
Total sales are projected to hit 16.9 million units in 2015, a 2.5% year-over-year increase and the highest overall total since 2005, when sales fell just shy of 17 million units overall.
HUTCHINSON LEADS DELEGATION TO PARIS AIR SHOW, GERMAN STEEL CONFERENCE
Gov. Asa Hutchinson left Saturday for the world’s largest airshow in Paris and a side trip to Germany where he and a delegation of state economic development and business officials hope to make new aerospace and steel industry contacts, and bring back new jobs prospects to Arkansas. Read more on the governor’s trade trip at this link.
ARKANSAS SEES TEPID 0.8% GDP GROWTH IN 2014
Arkansas’ real gross domestic product (GDP) output lost momentum in 2014 as the Natural State’s economic growth fell well below the rest of the nation and surrounding states, according to information released Wednesday by the U.S. Bureau of Economic Analysis (BEA).
In 2014, Arkansas’ economic growth advanced only a weak 0.8%, well behind overall U.S. growth of 2.2% and an overall GDP growth of 1.7% for the vast 12-state Southeast region that encompasses most of the Southern states, according to the U.S. Department of Commerce analysis arm. Read more here.