The manufacturing industry closed 2011 on a positive note, as industry data showed increased business activity from factories in the US.

The December Manufacturing Index report from the Institute of Supply Management registered at 53.9 percent. This is 1.2 percent higher than the November index and the highest since June of last year. Aside from that, new orders, employment, production, and price index also gave out encouraging results.

ISM’s New Orders Index registered 57.6 percent was the highest since April 2011, indicating that customer inventories need to be replenished immediately. The manufacturing industry continued to add jobs as employment index reached 55.1 percent, the highest since June. Production increased by 3.3 percent. Although slightly higher than last month, prices of raw materials used in manufacturing continued to decrease for the third consecutive month as the December Prices Index registered at 47.5 percent.

Based on the report, nine are reporting growth in December, in the following order: Apparel, Leather & Allied Products; Printing & Related Support Activities; Textile Mills; Petroleum & Coal Products; Machinery; Food, Beverage & Tobacco Products; Computer & Electronic Products; Primary Metals; and Paper Products.

“Manufacturing is finishing out the year on a positive note, with new orders, production and employment all growing in December at faster rates than in November, and with an optimistic view toward the beginning of 2012, " said Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee.

From the looks of it, everyone agrees with Holcomb’s views. Economist Peter Newland of Barclays Capital said in a note Tuesday, "This provides encouraging momentum heading into 2012." Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York said "We’re not roaring ahead here, but it’s also not collapsing. That’s consistent with our overall view of the economy in 2012."

Overall, 2011 has been a good year for manufacturing companies. I imagine that after doing their financial reports, many companies would have learned that they increased their profits, have better EBITDA, and showcase a better future ahead – all of these things that make manufacturing businesses attractive acquisition opportunities. 

Despite all the challenges last year, this industry has remained strong. So if your company is interested to buy a manufacturing business for sale, now is the time. Start building your future. Register as a buyer at Corporations4Sale.com and buy that business for sale!

Sources:
http://www.ism.ws/ISMReport/MfgROB.cfm?navItemNumber=12959
http://www.reuters.com/article/2012/01/03/us-usa-economy-idUSTRE7BM0AB20120103
http://online.wsj.com/article/SB10001424052970203462304577138512035840668.html
http://money.cnn.com/2012/01/03/news/economy/ism_manufacturing/index.htm
http://www.nytimes.com/2012/01/06/business/us-manufacturing-is-a-bright-spot-for-the-economy.html