Uncertainty resolved, manufacturing might increase in next six months

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Most economists agree: Manufacturing needs to grow if the U.S. economy is going to grow. That’s been happening only slowly so far this year, which is part of the reason why the economy is growing slowly too.

But that might turn around in the next six months. That’s according to a survey by Grant Thornton LLP, which surveyed 63 manufacturing companies across the country. Nearly half said they thought the U.S. economy would improve in the next six months. And 49% said they planned to increase staff in that same time period.

Wally Gruenes, national managing partner for consumer and industrial products at Grant Thornton, attributes that to the fact that much of the uncertainty plaguing U.S. businesses over the last year has been resolved. Now, business leaders know that tax cuts are here to stay and that environmental standards aren’t likely to change much anytime soon.

‘The uncertainty surrounding some major concerns that paralyzed businesses over the past two years have been partially resolved, which sets the table for stable growth in manufacturing over the next two years,’ he said.

The survey also showed that 47% of manufacturers intend to increase purchases of capital equipment and 37% expect to spend on information technology. That, in turn, could lead to more manufacturing.

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-- Alana Semuels