Presidential elections can have a dramatic impact on many industries, including manufacturing. Here at Perfection Spring & Stamping Corp., we understand that during an election year, people tend to count their money, making fewer purchases and saving more as our country undergoes major change. This type of behavior affects many industries from retail to manufacturing. We can see the uncertainty of elections from Wall Street down to the local market. According to Forbes magazine, “the S&P drops an average of 2.8% when a two-term president leaves office,” such as with what is happening in this year’s election. Other outside elements like Hilary Clinton’s email investigation throughout her campaign has also proven to currently affect the stock market. With the investigation closed as of this past weekend, we saw the stock market begin to bounce back again. Others predict what could happen to the future economy if one candidate is elected over the other.
Contenders aside, manufacturing is important to any economy, and the U.S.A. is no different. According to the Economic Policy Institute, manufacturers employ over 8.8 percent of U.S. workers. Manufacturing industries also account for 12.5 percent of the U.S. GDP. Between 1998 and 2013, the U.S. lost more than 5.7 million manufacturing jobs due to growing trade deficits, including those with Mexico, China, and other nations with lower wages. Part of this was also due to the weak recovery since the recession of 2009. Since the recession, there has been growth in manufacturing, although it has been slow.
During the final two quarters of 2015, the Manufacturers Alliance for Productivity and Innovation (MAPI) found there was virtually no change in the manufacturing industry. This was due to a strong dollar (meaning higher prices for other countries), high inventories, dropping commodity prices, and risk aversion, which all contribute to slow growth. Some predictions show growth won’t really begin again until the third quarter of 2017. The MAPI’s forecast for manufacturing shows a strong increase from 2016 to 2017, with a less sizable growth forecast from 2017 to 2018.
At Perfection Spring & Stamping Corp. we manufacture high volume custom metal stampings, springs, fourslide parts, wireforms and mechanical assemblies for global markets and OEM’s. We take pride in being involved in the manufacturing industry and providing jobs to strengthen our community, and we look forward to aiding the growth of the manufacturing industry in the future.