There a number of industries in the United States that drive the overall economy, and one of the most influential is manufacturing. If businesses in this sector struggle, it's possible that those in other fields will as well. For this reason, it is critical that manufacturers do all they can to put outdated methods of management and accounting behind them in favor of more modern solutions. After all, many organizations depend on their success.
Instead of using traditional spreadsheets, managers should revolutionize their operations by implementing manufacturing software. Using these tools, supervisors can ensure that all processes are being completed efficiently every step of the way, including needs related to inventory, invoicing and more. And by having the most modern platforms in place, companies can be confident that they won't violate current manufacturing legislation, avoiding costly compliance issues.
What impact does manufacturing have?
According to the Federal Reserve Bank of Philadelphia's most recent Business Outlook Survey, May was a month that highlighted the uncertainty that still exists in the current economy. The diffusion index of current activity, which is the organization's broadest indicator, fell to -5.2 in May from 1.3 in April. Any reading above 0 suggests expansion in the region that includes eastern Pennsylvania, southern New Jersey and Delaware. One related factor may have been decreases in demands for manufactured goods, which dropped to -7.9 compared to -1.0 last month.
However, despite this, manufacturers remained optimistic about the future. The future activity index rose to 32.3 in May from 19.5 in April. Over the next six months, 45 percent of respondents expect to do more business, while only 12 percent predict they will see less activity during this time period. Nearly one-quarter (24 percent) of firms surveyed noted that they plan to hire during the next six months, compared to 14 percent that foresee payroll cuts.
The National Association of Manufacturing (NAM) explained that there are a number of reasons the health of the manufacturing industry is so crucial to the economic outlook as a whole. For example, nearly 12 million Americans work in this sector, which generates 12.2 percent of the U.S. GDP. Additionally, in manufacturing, every $1.00 spent translates into $1.48 added to the economy, which NAM noted is the highest multiplier effect of all economic sectors in the nation.
Each company can only be directly responsible for its own outcomes, but by taking control, it can have a major effect on the health of America as a whole. Harnessing manufacturing technology can improve results for firms, and that's good news for everyone.