Nonprofit Blog

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.

With the 2016 General Election around the corner, it’s a fitting time to take a close look at the issues that will define the manufacturing industry’s long-term health and economic growth. As employers of more than 12 million Americans, manufacturers are uniquely positioned to advocate for policies and initiatives that will spur economic development—and fuel the industry’s comeback. We’re not here to tell you who to vote for, but we do believe manufacturers’ voices need to be heard in this election.

The rising cost of health care is on the minds of employers across the country, and the manufacturing industry is no exception. As manufacturers seek options to reduce costs, they are feeling uncertain about what the future holds, especially in light of the upcoming election and recently released news from the White House about pending increases.

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 — decreased 3.0 points during September to 49.4. Areas with the largest decrease include new orders; down 9.0 points, and employment; down 6.1 points. 

As manufacturers continue to explore new avenues for growth with emerging technologies, it is important to analyze risk and security. The manufacturing industry has experienced a 44% increase in cyber risks since 2013. This year, 92% of manufacturers listed cybersecurity concerns in their SEC disclosures. It is also the first time that BDO USA, LLP ranked cyber risk among manufacturers’ top 10 risk factors.

The upcoming presidential election has put some economic issues front and center, and one of them is the reshoring of jobs that were sent to other countries years ago to save companies manufacturing costs and – in some cases – taxes. In fact, over the past 30 years, the U.S. manufacturing industry has experienced the loss of three to four million jobs. While reshoring is gaining in momentum, it’s useful to look at the trends so see how many jobs are coming back to the U.S. and, in particular, to Georgia.

According to Don Sabbarese, Professor of Economics at Kennesaw State University, "The August report show that the rise in Georgia new orders and production rise to offset decreases in employment, supplier delivery time, and finished inventory." At Smith & Howard, we continue to see the challenge of finding skilled workers remains at the forefront of an otherwise optimisitic view from respondents. 

Imagine this: Company X is a plastics manufacturer attempting to develop new products that can be used in medicine. The company has grown in recent years, generating approximately $40 million in revenue last year, and has invested heavily in developing biodegradable plastics that can be used for the treatment of bone and bodily injuries and in various other medical procedures, as well as accelerating its 3D printing capabilities to achieve greater scale.

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.