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Dayton Business Journal...
Report: Economic
growth to surge through 2011
by Joe Cogliano, DBJ Staff Reporter
Tuesday, May 17, 2011
A new report indicates the U.S. economy will pick up steam as it heads
deeper into 2011.
Economic growth in the U.S. is expected to continue through the year,
according to a survey of purchasing and supply executives.
A Tuesday semiannual economic forecast from the Institute for Supply
Management show expectations have improved for manufacturing for the
remainder of 2011.
On the manufacturing side, the report projects revenues will increase
7.5 percent and capital investments will increase nearly 18 percent. It
also shows that operating capacity at plants has topped 83 percent, the
highest level since Dec. 2006 and an increase from about 80 percent at
the end of last year.
“Much of manufacturing has emerged from the economic downturn and is
experiencing significant growth,” said Norbert Ore, chair of the
institute’s manufacturing business survey committee, in a statement.
“Capacity utilization is back to typical levels and manufacturers are
significantly investing in their business.”
The health of the manufacturing industry is critical to the Dayton
region because it represents 100,000 employees across 12 local counties
and contributes $4.7 billion in annual payroll and $32 billion in
annual sales, according to a Wright State University study commissioned
by the Dayton Tooling and Manufacturing Association.
Companies with significant local operations include Navistar
International Corp., Honda Motor Co., Henny Penny Corp., Illinois Tool
Works, AK Steel Holding Corp., Thor Industries Inc., Robbins and Myers
Inc., Midmark Corp. and Emerson Climate Technologies, part of Emerson
Electric Co.
While the manufacturing outlook is bright, the ISM report projects
revenue at non-manufacturing companies will grow, but at a slightly
lower level than previously expected.
Purchasing and supply managers at non-manufacturers expect a 2.1
percent bump in revenue for the rest of the year, compared to the 3.4
percent increase expected in December.
“Indications are that non-manufacturing will continue on the path of
slow and sustainable growth for the balance of 2011,” said Anthony
Nieves, chair of the ISM Non-Manufacturing Business Survey Committee.
“Price increases and slow employment growth are prominent areas of
concern in the non-manufacturing sector.”
Among the larger non-manufacturing employers in the Dayton region are
CareSource, Teradata Corp., Sogeti USA, Kroger Co., LexisNexis, Wright
State University and Reynolds and Reynolds Co.
Read it with links at the Dayton Business Journal
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