Manufacturing Production Will Likely Grow by 3% in 2010

Feb. 24, 2009
MAPI predicts a 9% decline in 2009.

A harsh 2009 may give way to a moderate rebound in 2010, according to the Manufacturers Alliance/MAPI U.S. Industrial Outlook: Accelerating Decline, a quarterly report that analyzes 27 major industries. On an annual basis, MAPI forecasts manufacturing production to fall 9% in 2009 and grow 3% in 2010.

"Fortunately, we see an eventual end to the current recession, perhaps by late 2009," said Daniel J. Meckstroth, Ph.D., Chief Economist for the Manufacturers Alliance/MAPI. "A second round of federal fiscal stimulus, this time of major proportions; growing pent-up demand as spending is postponed; lower commodity prices, particularly oil; lower mortgage and borrowing rates resulting from Federal Reserve monetary stimulus; and declining imports will all contribute to a rebound in industrial production activity in late 2009," said Daniel J. Meckstroth, Ph.D., Chief Economist for the Manufacturers Alliance/MAPI.

Manufacturing industrial production, measured on a quarter-to-quarter basis, declined at a 16% annual rate in fourth quarter 2008 after falling at a 9% annual rate in the third quarter.

Non-high-tech manufacturing production declined at a steep 15% annual rate in the fourth quarter of 2008. Non-high-tech manufacturing production is expected to decline 8% this year and rebound a modest 2% in 2010. High-tech industrial production fell at a 29% annual rate in the fourth quarter of 2008. MAPI predicts it will decline 10% in 2009 and post 6% growth in 2010.

Steel production declined 41%, material handling equipment dropped by 25%, and industrial machinery and domestic electronic computer equipment production each decreased by 23%.

Domestic electronic computer equipment will decline 16% in 2009 and 13% in 2010, while electrical equipment will decline 10% in 2009 and 1% in 2010.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!