A monthly round-up of the MAPI resources available to NFPA members through NFPA's membership in MAPI.

Issues in the Brief
 
Inflation: Missing in Action?
Over the past several years, economists have warned that the rate of inflation will eventually pick up because of the Fed’s expansion of the monetary base (outstanding currency held by the public and deposits held by banks). Higher inflation has yet to materialize, however, raising the question of whether such fears are warranted. Nonetheless, concern that inflation will eventually erupt is one of the reasons the Fed is considering reining in—or “tapering”—its quantitative easing programs.

Manufacturing Is Still in a Cyclical Recovery, Pace Varies by Industry
While manufacturing is credited with being a driver of U.S. economic growth since the recession, its damage from the downturn was more severe than for the overall economy, leaving the sector in a much deeper hole to climb out of.

Global Taxes, Global Problems
While U.S. companies and lawmakers continue to speculate on the likelihood of tax reform, the Organisation for Economic Co-operation and Development, at the request of the G20, is working on an international tax reform project, an effort that could have widespread impact on multinational manufacturers and possibly result in significant changes to U.S. corporate tax laws and related treaties.

Economic Update

Manufacturing Activity September 2013
Senior Economist Don Norman reviews the most recent manufacturing data. The manufacturing industrial production index increased a relatively strong 0.7 percent in August, compared to a 0.4 percent decline in July. The gains were widespread, with 17 of the 25 industries showing expansion.

U.S. Industrial Outlook, September 2013
U.S. Industrial Outlook After a Spring Lull, a Midsummer Rebound Expected Summary of Findings and Forecasts Every three months, the Manufacturers Alliance for Productivity and Innovation (MAPI) provides a detailed look at the health of the domestic manufacturing sector and reviews the performance...

Europe’s Second Recession Seems to be Ending

Kris Bledowski, senior economist at MAPI, believes that Europe’s second recession probably hit bottom in the second or third quarter of this year. Net exports are the main contributor to the turnaround, mostly because of falling imports. An inventory swing provides a secondary boost. On the...

Advanced Manufacturing in the American South: An Economic Analysis Supporting Regional Development
A cluster strategy of economic development is the appropriate framework for promoting the evolution of a strong advanced manufacturing sector in the American South and beneficial spillover impacts for the broad regional economy. Innovation deficits and labor force gaps are the biggest...

Europe's July Manufacturing Output Falls
July’s industrial production fell 1 percentage point in the EU compared to the month before and was down twice that compared to the previous year. Manufacturing output will probably decline about half a percent this year in the Eurozone before climbing about a percentage point in 2014. Weakness was...

Manufacturing Facts: A New MAPI Production, is a collection of the key facts and figures that define the state of the U.S. manufacturing industry.

Manufacturing Facts: Measuring the Quantity of Manufacturing GDP is Distorted by High-Tech

An excerpt from The Facts About Modern Manufacturing: Manufacturing’s share of GDP since 1977 has either remained unchanged or declined by nearly one-half depending on whether the value-added is inflation-adjusted or in current dollars. The major issue in measuring activity is quantifying the contribution of computers and electronic products. Government statisticians account for the increased quality of computers and electronic products over time through lowering the price indicator for the industry.

Notice
Available for NFPA member companies’ exclusive, confidential, internal use only. No one may make or distribute copies or reuse all or any part of this report without the written permission of NFPA.
Disclaimer
This report is made available by NFPA as a service to the fluid power industry and contains information provided by companies in the industry. NFPA does not recommend or endorse any particular use of this report. NFPA, its directors, members and employees are not responsible for errors or omissions in the report or for loss arising from its use and disclaim all warranties and guarantees, express or implied, with respect to the information in this report.