According to the Mid-Atlantic Manufacturing Business Outlook Survey, the manufacturing job index has risen by 5 points to a robust 23.8, making September of 2018 another month of solid job growth.
The survey conducted by the Philadelphia Federal Reserve has now shown consistent growth for 14 consecutive months. Tax cuts and less regulations have augmented the economy which has led to more business hiring. These numbers are being seen around the country though some states are doing better than others.
Employment has remained in the positive zone in September, while general business activity, new orders and deliveries have also increased.
With a backlog of orders at several manufacturing firms showing the biggest build-up in over two decades, the staffing agencies in Philadelphia anticipate good job growth in manufacturing to clear the order books.
Key Indicators of Manufacturing Growth
Almost 40 percent of the manufacturing companies have registered an increase in factory activity in September, while only 15 percent have indicated a decrease. The index of new orders has gained by 9 points, while the shipments index gained by 8 points.
There has been an increase in unfilled orders and delivery times have been longer for the 11th month in a row.
More than 18 percent of the manufacturing companies have reported a growth in employment. Although the current employment index is down by 4 points, it has continued to be in the positive trajectory for 10 consecutive months.
Leading engineering headhunters in Philadelphia forecast an acceleration in manufacturing job growth as production is set to grow for the upcoming 4th quarter and companies are expecting further improvement for the next six months.
Firms Optimistic about Job Growth
Although the future employment diffusion index was down by 3 points in September, manufacturing companies in the mid-Atlantic region largely remain optimistic about the growth in jobs over the next six months.
About 36 percent of the companies expect a growth in employment, while only six percent expect a decline.
The future capital spending index for manufacturing firms remains high with nearly 44 percent of the companies expecting their capital spending to increase over the next six months. Engineering staffing experts believe that the increase in capital expenditures will boost job growth in the manufacturing sector in the region.
Jobless Claims at Record Lows
The job growth in the manufacturing sector in the mid-Atlantic region has been largely supported by consistently improving economic data and stronger economic fundamentals when compared to other regions. In September, the job claims have dropped to their lowest in the last 50 years, indicating a highly robust labor market.
In addition, The Philadelphia Federal Manufacturing index has risen more than expected in September. At the same time, the Index of Leading Economic Indicators suggests that the overall national economy could experience three percent economic growth in the last quarter of 2018.
Opportunities for Skilled Workers in Manufacturing
Manufacturing business outlook in the mid-Atlantic region shows a growth in job and career opportunities for skilled workers. According to leading staffing agencies in Philadelphia, manufacturers are reporting a greater demand for workers with specialized production skills, and are increasing hours for their current workforce to meet higher sales’ orders.
With an increase in consumer spending and industrial production, economic indicators show that the labor market in the manufacturing sector should continue to drive higher growth in the next two quarters.