MAPI Forecast: Full Recovery in Sight - Modern Distribution Management

MAPI Forecast: Full Recovery in Sight

Researcher predicts full manufacturing recovery by April 2019; forecasts U.S. manufacturing growth of 2.8 percent between 2018 and 2021.

The MAPI Foundation is forecasting a full U.S. manufacturing recovery by April 2019, predicting 2.8 percent average growth for U.S. Manufacturing between 2018 and 2021. That’s nearly double the organization’s November 2017 forecast of an average 1.5 percent growth over the next three years.

“As of the latest data for January 2018, manufacturing output remains 4.7% below the December 2007 level,” the organization reported in its March forecast. “For the first time, however, recovery is seen in our forecast. We project that the U.S. manufacturing sector will fully regain all lost output by April 2019, just short of a decade since a trough was reached in June 2009.”

MAPI pointed to four encouraging subsectors of the manufacturing economy: aerospace, computer and electronic products, machinery, and chemicals:

  • The organization is projecting a 5.6 percent average growth rate between 2018 and 2021 for the aerospace sector, due in large part to a more robust global economy and strong air travel demand.

  • Both the computer and electronic products and the machinery sectors continue to benefit from a recent capital spending rebound, partially catalyzed by the improved economic growth outlook. The computer and electronic products sector is expected to average 4.8 percent growth between 2018 and 2021, while machinery is expected to grow an average 4.3 percent during that time.

  • The chemicals sector continues to perform well, and MAPI said it anticipates 3.8 percent annual growth between 2018 and 2021. Cyclical strength in housing and demographic forces underpinning the demand for pharmaceuticals are among the tailwinds for chemicals output growth, MAPI said.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!