Signs that US manufacturing is growing are gathering as fourth quarter results hit Wall Street. A 10% rise in sales for one of EPIC’s vendors, Rockwell Automation, outpaced market expectations. Rockwell sites an upswing in the economy and a growing demand for automated system integration.
As a system integrator, EPIC has its fingers on the pulse of what is happening inside manufacturing facilities. This news, combined with other stories like Whirlpool moving operations back to the US, provides further evidence that domestic manufacturers are more willing to invest in US plants and equipment.
EPIC’s system integrators have also experienced an up-tick in manufacturing demand. Manufacturing facilities across the US are beginning to spend money on plant expansion, automation, and improvements to existing systems.
Over the last two years manufacturers have been afraid to spend money due to the state of the economy and gridlock in Washington. Instead of spending money to achieve more efficient factories, they have be funneling their spare cash into stock buybacks and dividends. This is all about to change according to IHS Global Insight’s latest report.
The economic research firm expects 2014 manufacturing spending to rise 7% compared to 3.5% in 2013. EPIC has also seen an increase in spending for the manufacturing of new technology facilities and green-field production plants. Economic signs point toward a positive 2014 in the manufacturing industry.
Where do you think the manufacturing sector is headed in 2014? (Leave your comments below)