Weak Dollar Privides Strength in Manufacturing

Weak Dollar Provides Strength in Manufacturing

American companies are continuing to benefit from a boom in exports due mainly to the decline in the value of the dollar earlier this year.

The Commerce Department that said orders for durable goods jumped 1.3 percent in July compared with the previous month, led by a big gain in demand for commercial aircraft. Durable goods, which also include cars, appliances and machinery, are under scrutiny not only because they reflect business spending, but because they are also an indicator of consumer confidence.

The strength in durable goods is just the latest indication that manufacturing is actually holding on quite well and that is a big plus in this weak economy. These upbeat capital goods numbers amid a downtrodden U.S. consumer sector indicates how helpful a weak dollar is in the current cycle.

U.S. factories saw a surprisingly hefty increase in their orders for big-ticket products in July, reflecting continued strength in export sales and a boost to business investment from the government's tax stimulus package. The July increase equaled a 1.3 percent rise in June; both months produced the strongest gains since a 4.1 percent leap back in December.

Demand for commercial aircraft shot up 28 percent in July. Chicago-based Boeing Co. wrapped up the huge Farnborough, England, international air show last month with orders for 197 planes, including a headline grabbing deal with Air China for 45 planes. European rival Airbus did even better, signing orders for 247 planes.

With Connecticut manufacturing heavily dependant on aerospace and in keeping with the State of Connecticut’s Next Generation Competitiveness Strategy to help Connecticut suppliers achieve World-Class productivity, the Connecticut Aerospace and Defense Initiative (ADI) was created. The State of Connecticut, through the Department of Economic and Community Development (DECD), made available ADI funds to assist companies in the introduction or continuation of Lean manufacturing techniques within their organizations. Companies can receive up to 50% reimbursement for the costs of Lean training and services supplied by a Registered Service Provider such as Leanovations.

Leanovations has helped many Connecticut Aerospace and Defense Manufacturers and their Supply Chain to obtain ADI funding to help offset the cost of training and coaching for Lean manufacturing techniques. To find out more about ADI’s 50% reimbursement for Lean visit www.Leanovations.com Funding Opportunities tab.