A new report from the Federal Reserve announced that production in the U.S. is up above pre-pandemic levels. It’s an increase of just 0.3% over the production last March, when the pandemic was announced.
But that’s 5.9 percentage points higher than last year at this time. This is the figure for manufacturing. Mining and utilities are also included in the 5.9 point average, although both were affected by Hurricane Ida.
Good news?
This is good news, pointing to an economic recovery, However, it may not all be smooth sailing. Oren Klachkin of Oxford Economics wrote, “Gains will be capped by enduring supply chain and hiring constraint.”
Supply chains continue to face disruption, and manufacturers are still having a hard time getting fully staffed.
Child care continues to be the top explanation workers give for continuing to delay their return to work.
Retail sales also fell, with homes and autos sliding noticeably. Publishing is up, though.
Mixed results
While there are pluses and minuses, it is overall a good thing that production has rebounded. Deloitte suggests that manufacturers have two options to bypass supply chain disruptions: increasing digital visibility and being more flexible on sourcing.
Any sign that things are getting back to normal counts as positive.
In the meantime, if you need Rexroth service or supply, call us first. We can arrange factory repair or reman for your Rexroth motion control systems.
Factory repair means your components come back to you as good as new. Remanufacturing means you get a new warranty.
We also have emergency replacement units on hand to get you back up and running fast.