November 15th, 2011 
Jonathan Dionisio 
The manufacturing industry has been vital to the economic recovery. In fact, economists say that this is a manufacturing-led recovery. The manufacturing industry continues to move us out of recession, despite encountering major setbacks and several hurdles along the way. Of course, this makes manufacturing businesses for sale great acquisition opportunities.
October’s factory expansion report is no exemption from the hurdles and setbacks experienced by the manufacturing industry. The Institute of Supply Management said that economic activity in the manufacturing sector for October registered at 50.8 percent, 0.8% lower than September’s 51.6. Analysts had been expecting a 52.0 percent growth.
However, of the 18 manufacturing industries, eight are reporting growth in October, in the following order: Computer & Electronic Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Primary Metals; Fabricated Metal Products; Paper Products; and Machinery.
Although the factory expansion report results may be disappointing, there are still reasons to celebrate. For one, the New Orders Index rose to 52.4 percent. This is the first time it’s been above the expanding margin in fou r months. On the other hand, Price Index, which represents the cost of manufacturing, fell to its lowest point in six months, to 41.0 from 56.0 percent.
That said decline is primarily attributed to producers’ reduction of their inventories. Inventories Index dropped to 46.7 from 52.0 in the last month. However, economists say that this will be good for business once demand picks up.
One more reason to celebrate is that even with global manufacturing experiencing a downturn; we do not hear a lot of bearish opinions about the economy. No recent ‘double-dip recession’ statements from analysts. Yes, the country is growing at a slow pace, but it’s a continuously positive process.
As a company looking to buy a business, manufacturing companies for sale are an excellent option. With the ongoing success of the manufacturing industry and it growth potential, a move in this direction could put your company’s future on a profitable path indeed.
Sources:
http://online.wsj.com/article/SB10001424052970204528204577011672826171012.html
http://www.ism.ws/ISMReport/MfgROB.cfm?navItemNumber=12942
http://www.reuters.com/article/2011/11/01/us-usa-economy-idUSTRE79O4A620111101
http://money.cnn.com/2011/11/01/news/economy/manufacturing/index.htm
Posted in 
Tags: 
