Tuesday, May 29, 2012

Dun and Bradstreet Reports Recession is Over for US Manufacturers

 The worst may be over, according to Dun and Bradstreet’s Business Insights report for May 2012. The manufacturing industry, which suffered in 2008 and continued to decline in 2009, may be on the path to a stable recovery. Data from 2010 and 2011 shows a slow but steady two-year increase in production and exports and a simultaneous decrease in bankruptcies, business failures, and delinquencies that should continue into 2012.  

While it is undoubtedly true that manufacturing production is up and failures are down, this growth cycle is much less pronounced than usual. This means two things for B2B companies. The first is that, while there is definitely an upward trend, there isn’t a sharp post-recession demand spike, which means that businesses won’t be looking to expand as rapidly as they would in a more normal growth cycle.  Secondly, as this manufacturing growth is being built on a slow but steady increase in demand, companies are investing more conservatively in capital and labor force expansion.  For B2B organizations this means that manufacturers will be looking to vendors who provide services and products that are leaner and more efficient than those contracted pre-recession.  

So, while the growth cycle isn’t as strong as was anticipated, the resurging strength of the manufacturing sector means that companies that are positioned to provide efficient goods and services to manufacturers should see gains, while those that are more bloated and less flexible may be passed by.  

Written By: Wilson Schwenke, Beacon Marketing Group, Inc. 

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