Manufacturing Drives Solid Economic Growth

Durable-goods manufacturing was the largest contributor to U.S. real GDP by state growth in 2011. This industry increased 7.9 percent in 2011, after increasing 17.0 percent in 2010. It was the leading contributor to real GDP growth in six of the eight BEA regions and in 26 states. Durable-goods manufacturing contributed 3.94 percentage points to growth in Oregon and 1.17 percentage points to growth in Michigan.

This is another indication of why the reinvention of manufacturing is so critical to Michigan and to the U.S. Manufacturers are winning the battle. Some of their stories will be told in Last Chance Mile: The Reinvention of Manufacturing, an e-book special set to be published in June 2012.

When manufacturers win, we all win. Case in point: one of the stories that will be told in Last Chance Mile: The Reinvention of Manufacturing, the story of American Axle and Three Rivers, Mich.  Here's a taste:\

The American Axle & Manufacturing Inc. (AAM) corporate expansion, including $102 million at the AAM Three Rivers campus is evidence of the tier-one auto industry supplier’s belief that the nation’s economy is recovering and the industry is positioned to sell 14 million units in 2012.

AAM’s corporate optimism is not unusual, any more. That feeling is in line with the Q4 2011 Manufacturing Barometer released Jan. 26 by PwC US. It shows U.S. manufacturers are planning to pump up their investment spending this year and that includes “significant emphasis on expansion into new markets” which is a major reason that AAM is making this billion dollar-plus investment.

The AAM-Three Rivers $102 million expansion is being done to handle production for a new, unnamed customer that AAM Investors Relations Director Christopher Son would only describe as “a major global, non-General Motors, OEM.”

“One of our drivers is to diversify our customer base, while at the same time still growing our relationship with General Motors,” he said.  Thirty- percent of AAM’s business is now with non-GM OEMs. With this new contract and additional business that will be coming in, Son said AAM is on its way to expand its non-GM business to about 50 percent by 2015.

Excerpt from Last Chance Mile: The Reinvention of Manufacturing

That good news that was released by the U.S. Bureau of Economic Analysis was not limited to manufacturing.

Real gross domestic product (GDP) increased in 43 states and the District of Columbia in 2011, according to new statistics released today by the U.S. Bureau of Economic Analysis (BEA) that breakdown GDP by state.

Real GDP increased in all eight BEA regions in 2011, although growth slowed in most regions. The Far West (2.1 percent) was the only region where growth accelerated. The Southwest region grew the fastest (2.7 percent), led by Texas with a 3.3 percent increase.

Professional, scientific, and technical services and information services were also leading contributors to U.S. real GDP by state growth. Professional, scientific, and technical services increased 4.9 percent in 2011, matching its 2010 growth rate. This industry contributed to growth in all eight BEA regions and in every state, and was the leading contributor in the District of Columbia, Virginia, Massachusetts, New York, Maryland, New Jersey, Florida, and Arkansas.

Information services, which includes publishing and telecommunications, accelerated in 2011, increasing 5.1 percent after increasing 3.0 percent in 2010. This industry contributed to real GDP growth in 42 states and the District of Columbia. It was the largest contributor to real GDP growth in Colorado and Utah.