Industrial Manufacturing Industry Expects to Create 11,000 U.S. Jobs in Fourth Quarter

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Researched by Industrial Info Resources (Sugar Land, Texas)--Jobs creation has remained a significant problem throughout the United States this year. Each month 125,000 new jobs must be created to maintain pace with population growth. Overall, jobs creation has been somewhat spotty in 2011. Some months have had solid gains, while others have barely reached the growth threshold or have been woefully low. As a result, the national unemployment rate has essentially remained unchanged for much of the year. However, companies within the Industrial Manufacturing Industry have continued to invest in new facilities throughout the year, even as the economy has remained unstable. Looking within the industry at plants that are scheduled to begin operations in the final quarter of the year, the Industrial Manufacturing Industry is poised to create 11,000 new jobs in the months of October, November or December.

Growth in the jobs arena has been slow in the Industrial Manufacturing Industry this year. Following the devastating recession, companies have taken a much slower, more cautious approach to how and where they are willing to invest their money. As a result, new plants are no longer being developed at a pace. Given the economic turmoil the country has seen in recent weeks, this change in development philosophy has proven itself. During the recession, companies learned that they could maintain the necessary production levels while operating fewer facilities and keeping employment at a minimum. However, as production levels have risen over the past 18 months or so, companies have been forced to expand--if in a more limited fashion than in the past.

As these new facilities come online and begin production, jobs will be created. While there will not be as many new jobs as in past years, any jobs creation is a good thing. Grassroot project activity has slowed and companies have taken advantage of the fact that many businesses failed during the down times. This left a glut of former manufacturing plants in place--plants that can be revamped and retrofitted to meet the needs of manufacturers at a significantly lower cost than new-build facilities. Companies have jumped at the chance to take advantage of this situation and are doing more purchasing of existing closed plants than ever before. While these types of expansions still require additional employment, it has meant that spending has been slightly lower, and in many cases fewer new employees are required.

Traditionally, the Great Lakes region of the U.S. has been a hotbed of Industrial Manufacturing Industry activity and growth. The region is the blue collar heartland, with its significant automotive and heavy manufacturing emphasis. While this region was devastated by the recession as thousands of plants were closed, recovery has been slowly occurring within its borders as companies are re-investing in the region that best suits their needs. In the fourth quarter, the second-largest concentration of new jobs will be made available in this region, as 12 new plants will begin operations, creating 3,200 new jobs.

Click on image at right for breakdown by market region of planned 4Q11 Industrial Manufacturing plant openings and new jobs creation in the U.S.

The Southeast region of the U.S. will see the largest jobs gains for the quarter. This region has seen significant growth in recent years, as many companies that formerly resided in the North have moved South, thanks to more lenient laws regarding workers and unions, as well as the offers of significant tax breaks that have been given by the states in order to attract new business. The automotive sector has taken advantage of these benefits, and several plants have been established in the region, which has drawn numerous tier suppliers to the area as well.

While growth has been slow across the board within the Industrial Manufacturing Industry, there continues to be growth, which is a good sign. Jobs are being created each and every month, and this is likely to continue into next year, even as the overall economic situation in the U.S. gets rockier and rockier. However, if the economy does not stabilize in the near future, much of this growth and jobs creation is likely to dry up as companies take more of a wait-and-see attitude. Without a stable economy--or at least an economy that appears to be improving--companies will cease to feel comfortable enough with the economic situation to continue to expand their businesses, or they could consider taking production overseas. This would lead to fewer new jobs and, over time, an increase in the unemployment rate, something that no one wants to see happen.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.