X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

A new report from MAPI/Manufacturers Alliance finds that 24 of the 25 manufacturing industries it tracks lost jobs between December 2007 and January ’09. Though the organization expects economic growth to return in second half of this year, it does not anticipate a manufacturing employment rebound until early next year.

According to the report, motor vehicle and parts employment experienced the largest decline at 21%, which in turn led to 10% job loss in the plastic and rubber products industries and 9% in primary metals. Meanwhile, the plunge in the housing market led to 19% job loss in furniture, 17% in wood products, 11% in nonmetallic mineral products and 10% in textile product mills. Even food and beverage manufacturing, which tends to fluctuate very little, saw employment decline 1% and 2%, respectively.

On the other hand, job loss in the high-tech sector is mixed. Electronic instruments employment declined a modest 2% in the 13-month period, while computer and peripheral employmentdeclined only 1% and communication equipment employment was unchanged. On the other hand,semiconductor and electronic components employment, which are more exposed to the auto, appliance, and consumer electronics downturn than other high-tech industries, fell a more severe 7%.

Though the most recent manufacturing report from the Institute for Supply Management in Tempe, AZ indicates a very slight uptick in February compared to January, Manufacturers Alliance/MAPI president and CEO Thomas J. Duesterberg attributes the small increase in to some resumption of automotive production after the long holiday closures rather than a genuine upturn in fortunes

“The only good news in the February ISM report is that manufacturing did not fall further from the depths it reached in January,” he says. “[M]anufacturing is still mired in the worst downturn since the 1973-74 recession, and there is little on the horizon to suggest improvement. Construction and exports continued to weaken in February, the decline in capital spending is at near depression levels and business confidence remains weak.”

While his organization’s projections suggest that inventory liquidation, low interest rates, global stimulus programs and pent-up demand may lead to stabilization and weak growth late this year, Duesterberg says huge risks still remain.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.