08 Feb The Latest Insights for the Manufacturing Industry
Anthony Citrolo, CPA – The NYBB Group
Opportunity: US Durable Goods Orders Increase
According to the Quarter 3 Industry Update from First Research by Dun & Bradstreet and M&A Source, a trending rise in new orders for durable goods in the US suggests that manufacturers may need to make adjustments to meet new market demands.
In 2017, President Trump signed the Tax Cuts and Jobs Act into law, designed to overhaul taxes and stimulate business investment. In the first eight months of 2018, new orders for durable goods increased 9.2% compared to the same period in 2017. According to the Wall Street Journal, this spike in orders may be a sign that the law is having the desired effect.
Increases have occurred in most major manufacturing industry sectors including primary metals (16.7%); transportation equipment (11.2%); fabricated metal products (10.7%); computers and electronic products (7.7%); machinery (6.5%); and electrical equipment, appliances, and components (6.1%).
Manufacturers should be prepared to meet this growing demand and capitalize on the opportunity to increase revenues. They should also monitor any additional legislature, the overall state of the economy, and other external factors that could have an effect on demand.
If you would like to discuss this article or schedule a private and complementary consultation, please contact Anthony at Anthony@nybbinc.com or 1-516-346-5272.