Investment Levels in Manufacturing Up 48%

Smaller domestic industrial companies are driving the U.S. economy as they discover new timesaving equipment and procedures. According to recent research, more small U.S. manufacturers are investing in their facilities and equipment, leading to larger productivity gains and new business opportunities.

PayNet Inc., a provider of credit ratings on small businesses, recently released its manufacturing index, which tracks investments made by small manufacturers. This can include property, plant, equipment, tools and business units.

The last index reported (Q4 2012) showed a return to levels last seen in 2006. Since the Great Recession, the amount of investments by small manufacturers is up 48%, driving higher productivity across all industry sectors with the exception of printing and publishing.

small-business-manufacturing-index-557x411Manufacturers of industrial machinery and equipment have fully recovered to prerecession levels. Instrument producers also showed positive gains.

“The process of reinvention and recreation is core to business right now and surviving companies have figured this out,” said William Phelan, president of PayNet, in a press release.

What we now have in America is a combination of significant economic forces. What has spun out of the recession are new, innovative manufacturers with a much more flexible workforce. According to PayNet, production has increased 15% at the same level of investments.

Our advances in production, our ability to cut out waste and a rapidly developing domestic market is leading to more opportunities on our own shores. According to an analysis by The Boston Consulting Group, by 2015 it will be just as economical to manufacture in some parts of the U.S. than in China as the labor-cost advantage of offshoring is quickly eroding.

Here at Master Power Transmission, we’ve invested in our plant, equipment and people to knock down delivery time from 4-6 weeks to within 48 hours on more than 70% of our products. We are also reinventing ourselves to go after new business opportunities, such as the launch of the Reeves INNOVAdrive, a new ready-to-install variable speed drive package.

For more on how we achieved this, check out this short video.

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