2022 Manufacturing Industry Outlook

[dot_recommends] December 22, 2021 Manufacturing Trends

Macro and Industry Trends Look Strong for the Manufacturing Sector

2022 Manufacturing Industry Outlook

 

The 2022 manufacturing industry outlook looks good. Macro-level economic indicators and industry-level trends both point to a strong year ahead and continuing into 2026.

Positive Macro Economic Factors

Macroeconomic factors may change, but as of the latest from the Federal Reserve, they look mostly positive.

  • Real GDP Growth: Goldman Sachs projects growth between 2% and 3% in each quarter of 2022
  • Unemployment is expected to continue to decline to as low as 3.5% in 2022
  • Inflation is expected to persist but moderate to 2.6%

Positive Manufacturing Sector Indicators

  • 9.8% Growth in the Manufacturing Sector in 2021
  • Recovering global demand for Manufacturing sector products
  • Rising consumer and business sentiment
  • Industrial production above pre-pandemic levels
  • Capacity utilization exceeding past peaks
  • Revenue for the Manufacturing sector is forecast to continue to grow, with annualized increases of 0.8% through 2026 to reach $6.2 trillion

2022 US Manufacturing Industry Trends: What to Expect

IBISWorld predicts these manufacturing trends in 2022:

  • Continued reliance on diverse global supply chains with gradual adjustments for improved resiliency
  • US innovation will drive increased international demand for manufacturing exports
  • The value of imports is expected to decline over the next 5 years
  • Sector employment will rise at an annualized 0.8% rate
  • The number of establishments will also increase
  • Profits will remain stable amid rising workforce and increased investment in R&D

What are you looking forward to in 2022? Are there specific trends in your industry segment that you’re focused on now?

We’d love to hear your perspective on the 2022 manufacturing industry outlook.

Get in touch with us on LinkedIn or Tweet us. We’re always happy to talk!

–parin

Managing Partner

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