September 22nd, 2011 
Jonathan Dionisio 
A couple of weeks ago, I did a review on how the manufacturing industry is holding up (read Assessment: The Resiliency of the Manufacturing industry). Admittedly, according to economic data here and in other countries, the industry does seem to be experiencing growth at a slower pace. But new data from the Federal Reserve manufacturing production index shows that manufacturing businesses for sale remain ideal acquisition opportunities.
Citing the Federal Reserve’s statistical release, manufacturing rose 0.5 percent in August, after a similarly sized gain in July. Overall, industrial production increased 0.2 percent in August after having advanced 0.9 percent in July.
Overall, production index for durable goods manufacturing has been increasing. Among the major durable goods industries, gains were recorded in businesses involved in primary metals; computer and electronic products; electrical equipment, appliances, and components; motor vehicles and parts; aerospace and miscellaneous transportation equipment; and furniture and related products. Motor vehicle and parts increased at an average of 3.1 percent in July and August, although it has not yet returned to the level it had attained prior to the supply chain disruptions.
Meanwhile, index for nondurable manufacturing edged up 0.1 percent in August. Increases were present in petroleum and coal products and chemical production. However, indexes for the remaining nondurable manufacturing industry groups moved down. The production index for mining increased 1.2 percent in August, primarily as a result of gains for crude oil, natural gas, and coal.
I believe the manufacturing industry will never lose its luster. It will remain profitable no matter what the economic situation is. Fact of the matter is that this industry is one of the most vital aspects of the economy and the nation as well. As such, manufacturing businesses will always be good investments. With the current economic situation, your company may be hesitant in buying a manufacturing business for sale, but rest assured that you are making the right moves to put your company on more stable ground.
Sources:
http://blogs.wsj.com/economics/2011/09/16/vital-signs-growing-manufacturing-output/
http://www.federalreserve.gov/releases/g17/current/g17.pdf
Posted in 
Tags: 
