Another interview I had this month was with the President and chief executive officer of Siemens Financial Services, a unit of Siemens AG with offices in New York City. Bill Zadrozny noted industry estimates reveal that 80 percent of manufacturing plants are expecting increased revenues this year. In line with that, 62 percent of manufacturers say they will boost investment in software and computers in 2004. Siemens Financial Services provides lending and leasing for manufacturers, so Zadrozny is in a position to talk with the top financial officers of many manufacturing companies. "We talk to real people doing real deals."
"Over the last six months, even before the GDP (U.S. gross domestic product) figures revealed it," Zadrozny stated, "we saw an increasingly bullish situation for manufacturing investment in automation and other factory equipment. This activity seems to be across the board in different types of industries. The first reaction of most manufacturers right now is to not build a new plant, but rather apply automation to increase capacity and reduce production costs. We're also seeing an increase in spending on information technology products. This increase is due partly to the reduction in investment after the huge Y2K expenditures and partly to the flat business environment of the last few years."
There are still media outlets spinning a tale of doom and gloom about manufacturing in America. Obviously all is not rosy, but every indication is that business is picking up. Those challenges that remain in the land of government and regulation are being addressed, albeit slowly. The thing to keep in mind is to measure the important metrics. Manufacturing has undergone a shift similar to that of agriculture of about a hundred years ago. When machines made farmers more productive, the displaced laborers flocked to cities to staff the young manufacturing industry. Now, manufacturing is more productive and excess labor is moving toward a burgeoning service and retail sector. So, if you're just measuring employment, then you could be missing the real health of the economy.
12:50:15 PM 
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