The overall MBI index for January 2013 resulted in an almost very little change, but on an individual basis of the subindices there is good news.
New orders were up significantly 41.9 to 52.6 and the resulting Production rose from 42.3 to 50.4. It has been since last summer that these two indices have grown. The backlog and exports both contracted again.
The metal working industry is still contracting the aerospace, automotive, construction machinery, electronics, forming and fabricating, and pump valves and plumbing products are still growing. Maybe this is because of the outsourcing that has happened the last 5- 10 years? Those industries growing being supported by overseas suppliers. Imagine how many more Americans would be working today with good paying jobs from the industries that support those growing industries. Today's businesses have to fight numerous government regulations, with health care being the latest with ACA. All businesses have to comply with OSHA and EPA rulings that over seas suppliers don't. The final two high costs for businesses today is insurance and litigation costs.
Steve Kline Jr. Market analyst from Modern Machine Shop MMS published these facts in the March 2013 issue and on-line at mmsonline.com. Thank you Steve for sharing your resourceful and timely information.