Report: Most Manufacturing Segments To Grow This Year

The MAPI Foundation expects the manufacturing sector to grow by 2.1 percent this year and 3.4 percent next year.

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A new report from the MAPI Foundation expects most manufacturing sectors to see growth in the U.S. this year.

The latest quarterly U.S. Industrial Outlook from the research arm of the Manufacturers Alliance for Productivity and Innovation offered annual projections for 23 of the 27 segments tracked by the group.

Nineteen of those 23 should increase this year, led by 11 percent gains in both housing starts and private non-residential construction.

Read more: Discover a major growth driver for manufacturing firms.

MAPI economists said last week that construction should provide significant help to related industries, including furniture, appliances and building materials such as glass, drywall and cement.

In addition, the auto industry fares well in the MAPI analysis. Motor vehicles and parts should increase by 9 percent this year, while engine, turbine and power transmission equipment is expected to grow by 7 percent.

Production of construction machinery is also expected to increase by 7 percent.

Three of the segments are expected to decline, with a 14 percent drop in machinery for mining and oil and gas drilling. Iron and steel production should fall by 11 percent; both segments are feeling the effects of sharply reduced oil prices.

Electric lighting equipment should see a more modest 3 percent decline, while paper production is the only segment expected to remain flat.

Performance should improve slightly in 2016, with 22 segments expected to see increases. Housing starts should grow by 18 percent to again lead the field, while another 14 percent drop awaits the mining and oil and gas segment.

In addition to problems in the energy sector, the strength of the dollar is also serving as a headwind to manufacturing growth.

On the whole, however, employment increases and easily available credit should provide a relatively healthy climate for manufacturing. The MAPI Foundation expects the manufacturing sector to grow by 2.1 percent this year and 3.4 percent next year.

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