News and Analysis
OMA members should be aware that a soon-to-be-released movie called “Dark Waters” is set to misrepresent manufacturing in the Ohio River Valley. The OMA is not about to let Hollywood and trial lawyers rewrite our industry’s story. Our “Truth About Dark Waters” campaign sets the record straight with fact sheets, videos and a blog. Check it out at TruthAboutDarkWaters.com. 10/31/2019
This week, several national news outlets — including Bloomberg — made much ado about a new federal report showing U.S. manufacturing fell to “11% of gross domestic product in the second quarter,” the smallest share in data going back to 1947. (Note: In Ohio, manufacturing comprises nearly 17% of the state’s GDP.)
Unfortunately, this is a woefully incomplete picture. Excluded from this GDP report are ancillary manufacturing activities such as R&D, corporate management, logistics operations, and advertising and branding. As a result, news media all too often fail to mention key facts such as the following:
- For every one worker in manufacturing, there are another four employees hired elsewhere. (Source: NAM)
- For every $1 spent in manufacturing, another $1.82 is added to the economy — the highest multiplier effect of any sector. (Source: NAM)
- The inflation-corrected “real GDP” for the manufacturing sector shows solid growth from Q4 of 2016 through Q1 2019. (Source: Federal Reserve Bank of St. Louis)
Finally, it should be noted that compared to other industries, manufacturing is efficient in adding value — certainly much more today than in 1947. The MAPI Foundation reports it takes 5.8 full-time equivalent manufacturing jobs to achieve $1 million in value added, compared to 7.7 for both transportation and services, and 16.9 for retail trade. 10/31/2019
The U.S. Commerce Department reports that the nation’s economic activity grew at an annualized rate of 1.9% in the third quarter — exceeding estimates. The better-than-expected data was the result of continued consumer spending, which accounts for 68% of U.S. GDP. HowMuch.net has published this insightful infographic examining how Americans are spending their money, based on recent federal data. 10/31/2019
Gov. Mike DeWine recently signed an executive order renewing DriveOhio, the state initiative promoting self-driving cars and other forms of “smart” mobility. Ohio officials are working to maintain the state’s role as a national leader in the testing and deployment of automated and connected vehicle technology.
The state recently received a $7.5 million federal grant, along with $10.3 million in matching funds from other sources, to study the use of automated vehicles on the state’s rural roads. DriveOhio was created in 2018 by then-Gov. John Kasich. 10/31/2019
According to new analysis by OMA Connections Partner RSM, the firm’s U.S. Manufacturing Outlook Index suggests a continued slowdown in U.S. manufacturing activity. RSM notes that “the trade war between the United States and China is exacerbating an industry slowdown, creating headwinds on multiple fronts,” while “automakers and logistics providers face a number of challenges.” See RSM’s insight here. 10/31/2019
On Wednesday of this week, the Ohio Senate voted 22-9 to approve Senate Resolution 376, offered by Senate President Larry Obhof (R-Medina) to urge Congress to ratify the U.S.-Mexico-Canada Agreement (USMCA), which would modernize the 25-year-old North American Free Trade Agreement. Earlier in the day, Ryan Augsburger, public policy services managing director for the OMA, testified before the Senate Transportation, Commerce and Workforce Committee in support of SR 376.
Politico reported this week that some leaders on Capitol Hill “are growing more concerned that USMCA will not get to the finish line” as Congress has only 20 days remaining in the 2019 session.
As noted in a recent editorial by OMA President Eric Burkland, approximately 103,000 Ohio manufacturing jobs rely on exports to Canada and Mexico, as one in three Ohio manufacturers export to one or both countries. 10/23/2019
Chad Moutray, chief economist for the National Association of Manufacturers, reports the U.S. dollar has risen 8.4% since January 2018 against other major currencies. He notes that a strong dollar continues to be a challenge for manufacturers’ earnings and export growth, but also pointed out the U.S. dollar has fallen 1.6% so far in October. 10/22/2019
From electrification to autonomous driving and changing consumer tastes, U.S. automakers are in an era of profound change. In its latest edition of The Real Economy, OMA Connections Partner RSM has published its analysis of the challenges facing the auto industry. In the same issue, RSM also provides its take on the impact of tariffs as they impact middle market businesses. 10/21/2019
More than ever, manufacturers are using digital technology, leaving them vulnerable to cyberattacks. According to OMA Connections Partner GBQ Partners, manufacturing is the second-most targeted sector when it comes to cyberattacks, as many companies do not have adequate security programs in place.
The OMA and GBQ Partners are offering a one-hour webinar at 10 a.m. (EST) on Nov. 7 to examine cybersecurity threats, as well as solutions for the manufacturing sector. The event is free for OMA members; $39 for non-members. Find out more or register here. 10/22/2019
If you own a manufacturing business, what are your plans for the company once you’re out of the picture? Statistics show that nearly half of family businesses have no succession plan. Review this list of eight steps to ensure a successful transition for your business, compiled by OMA Connctions Partner Gilmor Jasion Mahler. 10/23/2019