Category Archives: Economy

US Manufacturing and how it affects companies like Hi-Tek

Sustainable U.S. Growth
U.S. manufacturing ended last year with its best performance since 2010 following the end of the Great Recession. Now manufacturing has leveled out to what many economists consider a more sustainable pace of growth. Most factories here in the U.S. have adjusted to less than robust overseas demand and have come to reap the benefits of a more steady domestic market. These manufacturers have greeted 2015 with a new sense of optimism and have generally dismissed concerns over a December slowdown in growth as just a temporary blip on the economic radar screen. Still, the Institute for Supply Management has stated that its purchasing managers’ index for 2014 averaged a very impressive 55.8, again the best level since after the 2007-09 recession.

The Rest of the World
This all comes amid concerns regarding a global economy that has slowed down and could result in less demand for U.S. goods. Paul Dales, a senior economist at Capital Economics, stated that it “makes sense that manufacturing activity should be coming off the boil when global demand has eased and the dollar has risen.” He goes on to assure however that the “strength of domestic demand will ensure that industry and the wider economy still perform particularly well in 2015.”

Indeed, for most sectors of the U.S. economy, the recently lower prices of oil and other energy related products have been a big boon since they trigger much lower input costs for companies.
One company that has exploited opportunities afforded to it as a result of these economic changes is Hi-Tek Manufacturing, a firm that is known for its superior manufacturing and support of component production for the world’s major gas turbine and airframe manufacturers. Their highly engineered, complex components and assemblies for aircraft engines, airframes and land based industrial gas turbines have continued to see increased demand here in the U.S. and around the globe as well.

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Ohio Manufacturing

Ohio supplies the world with durable goods. These six leading export industries account for the 60% or $28B of the State’s total exports of $46B. In 2011, Ohio’s leading export was Machinery and it generated revenue of $8.5 billion. In about half of Ohio’s 88 counties, 12.6% or more of all workers are employed in manufacturing.

Industry leads the way in solid waste reduction and recycling. Reduction and recycling include source reduction activities, reuse, recycling, composting and incineration. Industry is an enormous consumer of recycled materials, such as metals, glass, paper and plastics; thus manufacturers are strong advocates for improving recycling systems in Ohio and the U.S.

Manufacturers have invested billions of dollars in environmental control technologies and more efficient processes, which has significantly reduced emissions. Ohio manufacturers have made tremendous progress in reducing toxic releases to the environment, every year.

The leading Ohio industries in terms of dollars of product shipped are: iron and steel mills and ferroalloy manufacturing ($14,557 million); petroleum refineries ($12,532 million); aircraft engine and engine parts manufacturing ($8,818 million); plastics products manufacturing (nec) ($7,977 million); soap and cleaning compound manufacturing ($6,802 million); and motor vehicle metal stamping ($6,488 million).

Ohio ships more than 20% of all U.S. production in these nine product categories:
Rubber product manufacturing (nec), structural clay product manufacturing (nec), pressed and blown glass and glassware manufacturing (nec), iron and steel pipe and tube manufacturing, custom (metal) roll forming, machine tool (metal forming types) manufacturing, rolling mill machinery and equipment manufacturing, motor vehicle metal stamping, and aircraft engine and engine parts manufacturing.