Tennessee report sees positive signs in manufacturing economy

Auto growth, housing increases signal a stronger outlook, researchers find

06/05/2013


Falling unemployment rates, an increase in vehicle sales and a long-awaited rebound in the residential housing market are all indications that the national and state economies are making a comeback.

Despite sequestration of federal spending and a payroll tax increase that have slowed consumer spending, the economy is poised for strong growth in both 2014 and 2015, according to the spring 2013 Tennessee Business and Economic Outlook.

The study, prepared by the Center for Business and Economic Research (CBER) at the University of Tennessee, predicts the trajectory of the state and national economies by examining many economic and fiscal factors and trends.

"The economy has finally found a firm footing," said Matt Murray, CBER associate director and the report's author. "This will be the third year of payroll employment growth and a falling unemployment rate following the Great Recession."

The national unemployment rate dropped to 7.7% in first quarter of the year and is expected to average 7.6% this year, compared to 7.8% in 2012. It is predicted to fall to 7.2% in 2014.

Additionally, payroll employment for the nation is projected to be up 1.5% this year and 1.6% next year, according to the report.

"These modest employment gains will help support modest reductions in the unemployment rate," Murray said.

Vehicle sales are inching closer to pre-recession levels, according to the report. They bottomed out at 10.4 million vehicle sales in 2009 but are rebounding. Sales are expected to total 15.3 million vehicles this year and 15.7 million next year. By 2016, sales will likely be restored to the levels that prevailed in 2006.

The nation's manufacturing sector is expected to continue to see job gains as well.

Tennessee's economy improved in recent quarters, notably in its unemployment rate. The state unemployment rate is projected to average 7.8 percent this year compared to 8.0 percent last year. It is expected to fall to 7.5 percent in 2014, according to the report.

Tennessee outperformed the United States in many measures, and the state's manufacturing sector employment growth in the first quarter was more than twice as large as the growth recorded for the nation.

Manufacturing will see employment growth continue into 2015. Jobs in the state's industrial sector will be up 1.6% this year and next year. Employment losses will continue to take place in nondurable goods manufacturing.

Read the entire report



No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
MEP Giants; MEP Annual Report; Mergers and acquisitions; Passive, active fire protection; LED retrofits; HVAC energy efficiency
Integrating electrical and HVAC systems; Tracking and conserving facility water use; Energy code advancements; The future of professional engineers
Control noise, vibration in building design: Tackling acoustics and design issues; High-performance building design; NFPA 99; Combined heat, power
Putting COPS into context; Designing medium-voltage electrical systems; Planning and designing resilient, efficient data centers; The nine steps of designing generator fuel systems
Designing generator systems; Using online commissioning tools; Selective coordination best practices
Understanding transfer switch operation; Coordinating protective devices; Analyzing NEC 2014 changes; Cooling data centers
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.
click me