Factory production in the US grew faster than the nation's overall economy for the past year. Many factors suggest that US manufacturers will be spending more this year to maintain their contributions to this area.
Industrial production, which is the real measure of manufacturing output, increased by 0.3% in December, and by 6.8% in the fourth quarter. Capacity utilization, which measures how well a factory uses labor and capital, increased to 77.2%, a post recession high.
Yet, the manufacturing industry, only added 60,000 jobs to the economy, which equates to about one-third the growth rate for all the other sectors during the year.
In total, this data reveals that the US manufacturing industry has significantly increased their productivity by using its workers and machinery better than most. With wages in China rising, worldwide consumption increasing as the European economy recovers, the demand for US made goods will be even higher this upcoming year
For US manufacturers to maintain their current productivity trends, they will need to produce more. They will look to get the most for the money that they spend on building new factories or increasing production from existing ones..
Located in the center of the country's most populated corridor, with a willing and eager workforce, lower cost of living keep salaries reasonable, and educational system willing to provide specialized training that the corporations desire, the Valley is the ideal place for a factory to built or expand.