Many manufacturing companies experienced annual contraction in their business in 2020 as a result of the pandemic and other factors. Some companies thrived. In January’s manufacturing-focused webinar, we will look at a broad swath of industries and determine where and when rise will begin, if it hasn't already.
For those businesses that are thriving, we’ll also assess how long the extraordinary demand will persist. We will look at 2021 and into 2022 for businesses in all phases of the business cycle and determine the best course of action to maximize profits and market position.
With data through November 2020, the US Total Manufacturing Production Index is down 6.6% on a year-over-year basis. However, the 3/12 (quarter-over-quarter) rate-of-change is at –4.2%, and this ITR Checking Point™ indicates that the cyclical momentum is shifting from negative to positive and that manufacturing ascent is likely in 2021. We expect business cycle rise to characterize all of 2021 and persist into 2022.
In addition to business cycle phase changes, there are many important factors that will influence the level of manufacturing activity we can expect to see in 2021 and beyond. The impacts of recent trade wars and the COVID-19 pandemic present a potential upside for the US manufacturing sector as companies reconsider supply-chain risks, assess their cost structures, and seek to develop alternate sourcing methods through reshoring.
With all that in mind, what can you expect from the manufacturing sector in 2021?
In our Insider™ exclusive January webinar, we will outline our predictions for the year ahead in the manufacturing industry. We will assess industrial activity levels around the world and take a closer look at the specific market sectors that make up manufacturing, such as automotive, chemicals, defense, electrical equipment, food, machinery, medical, mining, and oil & gas. Using ITR’s proven leading indicator methodology, we will help you prepare for what’s coming and empower you to make higher quality decisions at the right time.