US Auto and Parts Industry Outdoing Foreign Manufacturers

Many companies still looking to make their way into mainland China

There is a cyclical upswing for the global auto industry that has seen an acceleration in August at a faster rate than seen since the 2011 fiscal year as the United States continues to stride forward past its unfortunate 2008 recession. Meanwhile, Europe seems to be continuing downward with it’s struggles.

“Higher production levels at automobiles and auto parts firms partly reflected a further rise in new-order volumes,” said a report Wednesday from Markit Economic Research. “Total new business rose strongly and for the sixth consecutive month in August, despite a slight reduction in new export work.”

Markit Global Sector Purchasing Managers Index (PMI( which is a monthly survey that looks at over 20,000 companies in 28 countries, looked at both the auto and auto-parts manufacturers. The survey noted they saw consistent outpacing of the global manufacturing average by the U.S. Manufacturers in recent years.

Each of the manufacturing sectors had a 56.2 in August output as compared to the 41.7 for all manufacturing output by foreign makers. The monthly readings over 50 indicate a general growth, while lower is a decline.

Manufacturing in the auto and auto parts industry has led all forms of manufacturing in recent quarters, save for beverages. Within the month of July, 8,500 auto manufacturing jobs were advertised online with the United States, according to Wanted Analytics. The Ford Motor Company boosted its output at Flat Rock Assembly in Michigan in order to meet the escalating demands for its product, while Toyota Motor Corp stated that the automaker would find ways to boost production within Mexico.

There are still a number of companies that are looking to expand into China and grab some form of foothold on the mainland to drive up demand. The last earnings season has still been tepid across the board lately, and such a boost could be exactly what they need.

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David Pulman: Global Manufacturing and Supply (http://www.forbes.com/profile/david-pulman/) provides quality capabilities and services for all companies looking for a global logistics and manufacturing strategy expert.

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