The manufacturing industry, like any other, will have ups and downs.
Recent reports on the state of manufacturing have been very negative, but calling it a recession is likely over the top. These reports simply aren't looking at the whole picture.
Here are a few reasons why you shouldn't be too worried.
1. Recession isn't the right word
The word recession is scary, especially due to the last major recession. However, it's just not the right word for where manufacturing is right now.
Market Watch reported, "es, manufacturing output is down, but employment in the sector is still up, by 49,000 in the past 12 months, even considering the temporary losses from the auto workers strike against General Motors GM, +2.18%, estimated at between 45,000 and 100,000 jobs in October."
Employment didn't go down which is a major part of a recession.
2. We can't just focus on one metric
One metric going down doesn't mean a recession.
Those that are claiming manufacturing is in a recession are pretty much only looking at ISM - which isn't even a good overall marker.
Business Inside said, "As with every previous freak-out, the economic pessimists are mostly focusing on a single data point while missing the bigger picture of continued economic growth."
So, let's calm down and get to work! Jobs are open, manufacturing is overall in a great place compared to previous years, and Industry 4.0 is leading us into the future!
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