Georgia manufacturing “reversed course” in November, adding jobs and becoming more productive as well, according to a monthly survey.
Growth should be sustainable, concluded the report released late Thursday by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business.
Despite decades of decline that combined off-shoring of some industries and automation of many jobs, manufacturing remains a significant part of the economy — partly because many of the products are exported.
More than 366,000 people — roughly 8.3 percent of all of those employed in Georgia — work in the sector, according to the Bureau of Labor Statistics.
To assess manufacturing’s health, KSU uses answers from companies around the state and calculates an index that is similar to one used to take the pulse of national manufacturing.
KSU’s Purchasing Managers Index increased 2 points to 56.5 in November. That is slightly above its six-month average of 55.8.
Any score above 50 is a sign of growth.
New orders for products is a key component, since that indicates something about the future direction of the sector. Orders in the pipeline means work to be done in coming weeks and months.
That measure was 65 in November after hitting 70.5 in October.
That positive outlook is underscored by company expectations, said Don Sabbarese, co-director of the Econometric Center and professor of economics at Kennesaw State University. Moreover, “Fifty percent of respondents reported future production is expected to increase for the next three to six months.”
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