This presentation looks at United States March 2017 production. The presentation highlight key areas as well as government policy that may influence production over the longer term.

1. United States (USA) –
Manufacturing –
April 19, 2017
Paul Young CPA, CGA

2. Paul Young - Bio
• CPA, CGA
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
Contact information:
Paul_Young_CGA@Hotmail.com

3. Overview
• This presentation looks at United States March 2017 production.
The presentation highlight key areas as well as government policy
that may influence production over the longer term.

4. Agenda
• PMI Index – USA
• BMO – Analysis – USA Manufacturing
• Summary Production/USA – March 2017
• Near shoring

5. PMI Index

6. Production USA – March 2017
Douglas Porter – BMO – Economics – April 18, 2017
Over all, U.S. industrial production had a 0.5% gain in
March, but was down 0.3% excluding utilities. The
capacity utilization rate rose 0.4 ppts to 76.1%, the
highest in over a year but still not near inflation-
threatening territory. For manufacturing, this comes out to
75.7%, a 3-month low.
The Bottom Line:
This was a noisy report......good headline, but weaker
details. Clearly another increase in manufacturing
would’ve made a big difference but the solid gain
excluding motor vehicles is a good sign. We should see
some retracement in the months ahead.

7. USA Production Falls for March 2017
• http://www.industryweek.com/competitiveness/us-factory-output-falls-most-august-amid-drop-
autos?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+IWNews+%28IndustryWeek+Most+Recent+News%29&sfvc4enews=42&cl=articl
e_2&NL=IW-07
The weakness in auto manufacturing mirrors a slowdown in sales to consumers, indicating that a broader recovery
in factories remains bumpy, with production rising 0.8% last month from a year earlier. The rebound in utility
output follows two months of sharp declines amid unusually warm weather and may reflect stronger demand for
heating with March temperatures that were a bit more seasonal.
Among other details:
• Utility output rose 8.6%, the most in data going back to 1939, after a 5.8% drop the previous month.
• Production of motor vehicles fell 3%, the most since last May. Excluding autos and parts, industrial production
fell 0.3% after a 0.4% rise.
• Oil and gas well drilling rose 7.7%.
• Production of non-energy materials fell 0.6% after a 0.7% gain.
• Production of nondurable consumer goods rose 2.1%, while output of business equipment decreased 0.4%.
• Machinery production fell 0.5% and output of computers and electronics rose 0.9%.
Patricia Laya – Industrial Week – April 18, 2017

8. What manufacturing is saying
• https://www.instituteforsupplymanagement.org/ismreport/nonmfgrob.cfm?SSO=1

9. Near Shoring – USA
Source - http://morailogistics.com/north-america-next-outsourcing-destination/
To say that offshoring producer jobs has been popular over the last few decades, would be an
understatement. Just between 2000 to 2003, around 220,000 American jobs were shipped overseas
annually according to the Reshoring Initiative.
2014 was a turning point. For the first time in over 20 years, there was a net gain of 10,000 jobs brought
back to American shores. Combine that with the fact in 2016 alone, Chinese companies invested over $20
billion into the U.S. That figure was practically non-existent just a decade earlier.
The trend is set to continue. The 2016 Global Manufacturing Competitiveness Index predicts that the U.S
will be the most competitive manufacturing economy in the world by 2020.
Kelli Saunders – Logistics – April 6, 2017

10. Trump buy America
• http://www.industryweek.com/workforce/trump-seeks-headway-buy-american-hire-american-pledge?NL=IW-
07&sfvc4enews=42&cl=article_3&utm_rid=CPG03000001519274&utm_campaign=18734&utm_medium=email&elq2=b7555e292e414ba893d7175602018c02
Donald Trump on April 18 moved to make good on one of his emblematic pledges -- "Buy
American, Hire American" -- by issuing a decree on tightening skilled-worker visa rules, but
his room for maneuver remains limited without wider congressional reform
Donald Trump - Industry Week – April 18, 2017

11. Key areas of focus
• Trump continues to focus on American jobs
• NAFTA to be re-open
• Tax reforms
• Trump clawing back many of Obama programs like clean energy
• Automotive is expected to be down 1M units in 2017 as compare to
2016
• Oil industry is seeing upside in oil rigs.
• Trump plans moneys for infrastructure