Ringing in a New Year of Continued Manufacturing Growth
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2019 Manufacturing Projections
As manufacturers begin looking for ways to evolve in the new year, it is necessary to reflect back upon the year gone to learn and grow from the successes we’ve had, goals we want to achieve, and existing methods we want to improve upon.
In 2018, the U.S. had a year full of new trade policies which heavily impacted the manufacturing sector in different ways. The United States remains a major force in global manufacturing and saw expansion in many key areas of the industry. We saw positive signs regarding job stability, wages, benefits, and career paths which have increased interest and improved the brand image for manufacturing, an important factor for future generations.
Not only did the manufacturing sector benefit from a healthy 2018, but so did buyers, suppliers, and industries such as transportation, cargo control, construction, pipe manufacturing, automotive, and more general industrial markets. At Universal Polymer & Rubber, one of our high points was the acquisition of Gasko Fabricated Products, a die-cutter of polymer and hybrid materials capable of high production volumes.
The Future Looks Bright
The MAPI Foundation projects a bright outlook full of steady growth for manufacturing through 2021. This is, in part, due to the projected strength of capital equipment investment. This positive outlook, however, is tempered by the recent tariffs which could have a significant impact on U.S. manufacturers. While some businesses are benefiting, the longer term effects may provide a challenge for some smaller manufacturers, including increased costs.
Recent tariffs may lead manufacturers to raise prices, impacting consumers and/or leading to cuts in production. Moving into 2019, it’s up to manufacturers to discover new, innovative ways to save and mitigate the impact of any increased costs before price points hit the customers. In the end, the industry as a will need to adjust to any rapid changes.
Growth for Rubber and Polymers
The rubber and polymer industries are projected to have sturdy continued growth this year. As vehicle use increases, so will the world demand for tires, increasing the demand for rubber and rubber fabrication services. Likewise, the construction industry will drive the growth of polymers. Polyurethane foams, which are used heavily in construction applications, are expected to drive significant market growth for industry stakeholders.
Despite concerns about tariffs, the projections for 2019 show a continued increase in demand for rubber- and polymer-based products. As a manufacturer of a comprehensive range of polymer and rubber parts and components, UPR remains committed to helping our customers compete and grow in the upcoming year.
