Employment numbers are lagging, fueling speculation that the country’s economic woes are far from over but in spite of gloomy news on the jobs front, a June report from the U.S. Department of Commerce indicates there are areas of the economy showing steady improvement. The report also states that even though overall economic growth remains slower than expected, the manufacturing sector shows steady improvement. The manufacture of durable goods has been one of the few sources of strength in the economy since the recession ended two years ago.
Gemco Valve President, Jim Lenihan agrees with the USDC report. “2008, 2009 and 2010, the recession years, were really tough for us but we’re definitely feeling the manufacturing recovery.” First quarter 2011, Gemco Valve experienced significant growth and has booked a record number of orders during the second quarter. Lenihan believes the sharp uptick in the company’s last quarter may be the result of pent up or latent demand. “Our suppliers of raw material are also reporting good growth and most of us are hiring staff and adding capacity to our plants just to keep up with the rising demand,” Lenihan states.
The current lower valuation of the dollar against other currencies makes US goods more attractive. This is especially helpful for small manufacturers who are competing in the global marketplace. Gemco Valve is experiencing a marked increase in foreign business with orders from China featuring prominently.
The good news is that Gemco Valve is not alone in their positive outlook about business. According to a recent survey by the New Jersey Chamber of Commerce, most members are optimistic about the state’s economy, 56% of those surveyed expect an increase in their companies’ revenue. They also believe this growth and bottom line improvement will continue.
The country may not have completely emerged from its financial woes, and gains may not be felt in the greater economy for several more months. But booming business at Gemco Valve and other small manufacturers is a clear indication that economic recovery is already happening at a local level.
