US manufacturing expands at fastest pace in 10 months as orders, hiring and production rise

[steve2470]

http://www.washingtonpost.com/politics/us-manufacturing-expands-at-fastest-pace-in-10-months-as-orders-hiring-and-production-rise/2012/05/01/gIQAs4R2tT_story.html

WASHINGTON — U.S. manufacturing grew last month at the fast pace in nearly a year. New orders, production and a measure of employment all rose.

The Institute for Supply Management, a trade group of purchasing managers, says its index of manufacturing activity increased to 54.8 in April. That’s the highest level since June and up from 53.4 the previous month. Readings above 50 indicate expansion.

The positive report helped the stock market turn positive.

A measure of employment rose to a nine-month high, an indication that factories are still hiring at a healthy clip. That’s a good sign ahead of Friday’s April jobs report.

[cthulu2016]

1. Good

[Cronkite]

2. While it is great manufacturing is expanding wages aren't what they used to be.

This is just anecdotal evidence from my local area.

1) G.M. is rehiring at the Spring Hill Tennessee plant (good news) . The bad news is that the workers will earn 15 dollars an hour. The related auto suppliers are also hiring however considering wages at the G.M. plant are 15 the suppliers are offering anywhere from 8 dollars to 12 dollars an hour.

2) The Nissan plant in Smyrna, TN recently hired over 1000 workers for its new "Leaf" electric vehicle. EVERY one of those hired were "contract" workers paid 11 dollars an hour. I do not know if there is a plan to hire them full time and at what wages BUT 11 dollars an hour is the current pay.

3) Bridgestone/Firestone tire plant.- They shut down passenger tire production at the LaVergne plant in 2009 and reduced production of Truck/Bus tires for over a year. During this "trouble" the company and union agreed to wage cuts for current employees from 24/hr to 20/hr (my numbers may be off a bit). When they started increasing production it was after the recall rights expired for laid off workers. They started hiring production workers at 13.80 an hour.

4) I see plenty of third tier auto suppliers in my area offering 8 dollars an hour for production jobs when I KNOW for a fact the jobs used to pay 11 to 12 dollars an hour.

Manufacturing may be "coming back" but the jobs that offered workers a middle class standard of living is gone. The days of a basic production job lifting you out of poverty are gone for good.

[crazylikafox]

3. More corporate welfare.

The taxpayers will have to pick up the difference through Earned Tax Credits, foodstamps, medicaid or other health care support, etc. etc. etc. to keep families surviving. If they can't pay a living wage, TAX THE HELL OUT OF THEM so that we can recoup the cost of worker support out of their "profits". Instead, the Repubs want to lower their tax rate even more??????

[spartan61]

4. Maybe we should remind the various companies of Henry Ford.

He raised his workers wages so they could afford the product they were making. He knew that his company wouldn't last very long if there were no sales for his cars.

[FogerRox]

5. Why stop there, 12 countries are now in a double dip recession

http://www.dailykos.com/story/2012/05/01/1087765/-Alex-can-I-have-austerity-for-1-3-trillion-bucks-?showAll=yes

Great points BTW about downward wage pressure.

[Zalatix]

6. This is good news. Better than said jobs going overseas.