April 25, 2006
Manufacturing in our country and around the world has undergone massive changes in recent decades, and it was particularly hard hit by the recession in the early part of this decade. But it's making a comeback, says N.C. State University economist Mike Walden.
"Factories are really humming again. In fact, the index of factory utilization shows that nationwide it is now back to pre-recessionary levels," says Walden, an economist with the North Carolina Cooperative Extension Service.
"Now manufacturing always takes a big hit during recessions because manufactured products are storable. So if a store is not selling sofas, they can simply put those in storage. And, of course, the sofa factories are going to shut down and not produce any more. So manufacturing is always hard hit during a recession.
"But the good news is that, for all of manufacturing, it is back. ... The news is even better for North Carolina. Factory output is up 12 percent as to compared to before the recession and is now at an all-time high."
Posted by deeshore at April 25, 2006 06:08 AM