Manufacturing at Its Highest Level in 7 Years

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In 2010, the Institute for Supply Management reported that U.S. manufacturing jumped for 19 straight months. This positive momentum in the domestic manufacturing industry culminated in its reaching the highest level in seven years in February 2010. This is excellent news, and we will cover its ramifications in this article, along with the reasons why this is such good news. Things have looked pretty down for manufacturing for a while and the cause of that is mostly from a rather large event that started about two years before this recovery.


This rise in manufacturing across the country is a major turnaround from the dismal years of 2008 and 2009. The economic downturn during that time period, known as the Great Recession, was a major drag on most sectors of the American economy, so it is no surprise that manufacturers were hit hard. From house sales to car sales to just about every other kind of product’s sales fell, so it makes sense that manufacturers would need to cut back on production for at least a little while to deal with the excess inventory levels and avoid exacerbating the problem. After all, supply and demand are important things to balance and if the demand for products decreases while the supply increases, something has to give to return the situation to something resembling normalcy. And the things that change are usually a product’s price and supply.

That was certainly the case with the housing market. Too many houses had been built and too few people could afford them because of the ahistorical rise in real estate prices in most parts of the country. So homebuilders had to respond by cutting projects and many suffered financially and even went out of business as a result. But we are beginning to see somewhat of a recovery (or at least a stabilization) in house prices, so positive things may be on the horizon for that market.


Manufacturing is riding a wave of momentum in consumer demand and production demand that will hopefully continue in 2011 and then on through the foreseeable future. Some worry that international unrest, high oil prices, and a weak housing market could hinder the economic growth that has propelled the manufacturing industry’s recovery. But there are plenty of reasons to be optimistic.


Make sure you are ready for sudden rises and drops in production by using manufacturing inventory software. If you move too slowly, you could produce too many products and then have to take a loss on them. You could also miss out on opportunities to generate more revenue if demand suddenly increases and you do not have enough products to handle it.

Manufacturing inventory software helps you maximize your efficiency. It makes inventory management easier by monitoring inventory levels, giving you access to detailed information, and helping you keep an optimal amount of inventory on hand. Whether or not the manufacturing recovery will continue, your business can gain more success by taking advantage of manufacturing inventory software.


2010 saw a major turnaround in the manufacturing industry from the down years of 2008 and 2009. And there are plenty of signs that indicate a positive trajectory in consumer demand, which bodes well for manufacturers for many years to come. They can use inventory software to help them make the most of these opportunities.

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