It comes as no surprise to anyone that the U.S. manufacturing sector has had its share of challenges over the past two years. Coming out the other side of a global pandemic, the manufacturing industry is plagued by unprecedented supply chain instability and historic workforce shortages. Despite these issues, there are signs of recovery and reasons for optimism, according to Deloitte’s U.S. 2022 Manufacturing Industry Outlook.
“The recovery gained momentum in 2021 on the heels of vaccine rollout and rising demand,” Deloitte’s report states. “As industrial production and capacity utilization surpassed pre-pandemic levels midyear, strong increases in new orders for all major subsectors signal growth continuing in 2022. Deloitte projections based on the Oxford Economic Model (OEM) anticipate GDP growth in manufacturing of 4.1% for 2022. As capital expenditures rise, a combination of high business valuations, strong earnings, and low-cost debt may also encourage companies to add technology capabilities, gain share, and expand in new markets with M&A. Policy initiatives and infrastructure investment have the potential to contribute to manufacturing’s recovery.”