Tennessee report sees positive signs in manufacturing economy

Auto growth, housing increases signal a stronger outlook, researchers find

06/05/2013


Falling unemployment rates, an increase in vehicle sales and a long-awaited rebound in the residential housing market are all indications that the national and state economies are making a comeback.

Despite sequestration of federal spending and a payroll tax increase that have slowed consumer spending, the economy is poised for strong growth in both 2014 and 2015, according to the spring 2013 Tennessee Business and Economic Outlook.

The study, prepared by the Center for Business and Economic Research (CBER) at the University of Tennessee, predicts the trajectory of the state and national economies by examining many economic and fiscal factors and trends.

"The economy has finally found a firm footing," said Matt Murray, CBER associate director and the report's author. "This will be the third year of payroll employment growth and a falling unemployment rate following the Great Recession."

The national unemployment rate dropped to 7.7% in first quarter of the year and is expected to average 7.6% this year, compared to 7.8% in 2012. It is predicted to fall to 7.2% in 2014.

Additionally, payroll employment for the nation is projected to be up 1.5% this year and 1.6% next year, according to the report.

"These modest employment gains will help support modest reductions in the unemployment rate," Murray said.

Vehicle sales are inching closer to pre-recession levels, according to the report. They bottomed out at 10.4 million vehicle sales in 2009 but are rebounding. Sales are expected to total 15.3 million vehicles this year and 15.7 million next year. By 2016, sales will likely be restored to the levels that prevailed in 2006.

The nation's manufacturing sector is expected to continue to see job gains as well.

Tennessee's economy improved in recent quarters, notably in its unemployment rate. The state unemployment rate is projected to average 7.8 percent this year compared to 8.0 percent last year. It is expected to fall to 7.5 percent in 2014, according to the report.

Tennessee outperformed the United States in many measures, and the state's manufacturing sector employment growth in the first quarter was more than twice as large as the growth recorded for the nation.

Manufacturing will see employment growth continue into 2015. Jobs in the state's industrial sector will be up 1.6% this year and next year. Employment losses will continue to take place in nondurable goods manufacturing.

Read the entire report



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Save energy with automation; Process control system upgrades; Dispelling controll myths; Time-sensitive networking; Control system integration; Road to IANA
Additive manufacturing advancements; Machine vision enhances robotics; Fieldbus evolution; Process safety; Advice from System Integrators of the Year; Road to IANA
Salary and career survey: Benchmarks and advice; Designing controls; Remote data collection, historians; Control valve advances; Hannover Messe; Control Engineering International
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
click me