Call Toll Free: 1.877.625.2402

Manufacturing in the U.S. unexpectedly accelerated in January at the fastest pace in more than six years, reinforcing forecasts the economic recovery will strengthen in 2011.

“Businesses have figured out the economic recovery has legs so they’re growing more confident about expanding production and new orders and increasing hiring,” said John Silvia, chief economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “Manufacturing is making a very decent contribution to growth.”

General Electric Co. last month posted its third straight quarter of profit growth, beating analysts’ estimates, driven by a rebound in its finance unit, health-care and transportation divisions. “The environment continues to improve,” Jeffrey Immelt, GE’s chief executive officer, said on a Jan. 21 conference call. “The economy can get a little bit stronger every day.”

Caterpillar, the world’s largest maker of construction equipment, posted fourth-quarter profit that topped analysts’ estimates as sales advanced in China, Australia and Latin America. The Peoria, Illinois-based company last week said sales climbed 62 percent to $12.8 billion from the year-ago quarter. The company said 2011 sales will exceed $50 billion, compared with $42.59 billion in 2010. Auto dealers are also seeing improved demand. Car sales in December rose to a 12.53 million unit pace, the highest since the government’s cash-for-clunkers program in August 2009, according to industry data.

Precision Electric has also seen a major increase in both sales and service within the last several months. We have been prospecting new customers, and also experiencing increases of repair and service work with our existing customers.

Precision Electric recommends that all manufacturers keep spare equipment in case of an emergency breakdown. We also encourage you to schedule routine predictive maintenance on both your equipment in production as well as your spare equipment. Over the past several months many customers of ours have decided to have Precision Electric rebuild their spare equipment in case of an emergency breakdown. If you have equipment that needs to be repaired or replaced, let us know.

Ryan Chamberlin
Inside Sales, Customer Support
[email protected]
Call Toll Free: 1.877.625.2402

Source: http://www.businessweek.com/news/2011-02-01/u-s-economy-manufacturing-grows-by-most-since-2004.html