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Doing business in Georgia comes with a perk or two, especially for manufacturers. Manufacturing companies can operate in the state at a lower cost than other states, make leaps in innovation and secure (many) business incentives. [[{"type":"media","view_mode":"media_large","fid":"2781","attributes":{"alt":"","class":"media-image","height":"320","style":"float: right; margin: 10px;","typeof":"foaf:Image","width":"480"}}]]

Georgia’s Purchasing Managers Index (PMI) — a reading of economic activity in the state’s manufacturing sector — increased by 4.1 points in October, to 53.5. Gains in new orders and employment offset the drop in production. The Southeast and National PMI remain above the 50 point threshold.

In our September issue, we examined the origins and results of offshoring U.S. manufacturing jobs. In this issue, we continue our two-part series “From Offshoring to Reshoring – Trends in U.S. Manufacturing,” with a closer look at the more recent trend of reshoring—what’s driving it, and what the future may hold for Georgia and the nation.

Georgia’s Purchasing Managers Index (PMI) — a reading of economic activity in the state’s manufacturing sector — increased 3.2 points during July to 52.5. The most-improved area was employment; up 19.0 points in July. The Purchasing Managers Index (PMI) Report is underwritten by the Manufacturing and Distribution Group of Smith & Howard, a top Atlanta CPA firm with a focus on serving manufacturing businesses, and is produced monthly by the Econometric Center at Kennesaw State University.

Each month in Manufacturing and Distribution Matters, we provide monthly PMI updates to our readers. This month, we wanted to bring you a “big picture” look back at the first half of 2016.

Two key Georgia technology leaders are playing a pivotal role in the advancement of the large-scale manufacturing of cell-based therapeutics that can treat a wide range of serious illnesses. The Georgia Institute of Technology (Georgia Tech) – a fellow Midtown neighbor – and the Georgia Research Alliance (GRA) have joined forces to launch the National Cell Manufacturing Consortium (NCMC), an industry-academic-government partnership that recently released the National Roadmap for Advanced Cell Manufacturing. The roadmap was announced June 13 at the White House Organ Summit.

As jobs in the manufacturing industry have become more advanced, there is a growing demand for educated workers to fill open jobs in Georgia. In May, Gov. Nathan Deal approved a budget that includes tuition money for students working in high-demand fields, including industrial maintenance. The Strategic Industries Workforce Development Grant is open to technical college students pursuing a certificate or diploma in high-demand industries. You can learn more about the grant in this article or visit the Technical College System of Georgia's website. 

According to Don Sabbarese, Professor of Economics at Kennesaw State University, "New orders in 2015 have slipped since the first quarter. Production, employment and capital spending have not shown a similar pattern, which poses the question of whether a weakness in new orders will lead to a weaker trend for the other components. Other economic data including the Georgia and National PMIs suggest that might be possible." The Georgia International Business Index (GIBI) Report is underwritten by the Manufacturing and Distribution Group of Smith & Howard, a top Atlanta accounting firm, and is produced quarterly by the Econometric Center at Kennesaw State University. 

The Georgia International Business Index (GIBI) Report is underwritten by the Manufacturing and Distribution Group of Smith & Howard, a top Atlanta accounting firm, and is produced quarterly by the Econometric Center at Kennesaw State University.
   
The GIBI increased 14.8 points, from 47.7 for fourth quarter 2014 to 62.5 for first quarter 2015 based on increases in all underlying variables.