2012年1月15日 星期日

Spending to rise in 2012; economists expect increases in automotive

Companies in Jackson are expected to retain or add employees within the automotive, manufacturing and retail areas this year, as long as the European financial system doesn't collapse and housing remains stable.

During the past three years, layoffs have discouraged people from spending on all but the most necessary items, as workers either lost or feared losing their jobs, said Kenny Holt, professor of economics at Austin Peay University.

People's lack of spending has caused two things, Holt said. The first is pent up demand for vehicles as people have kept cars longer to avoid monthly payments. The second is increased personal savings accounts. Those factors, combined with a more stable job market, are expected to help increase retail and automotive sales within the county and nationwide. The demand for autos could continue through 2013, Holt said, even if a large number of car buyers hit lots within the first half of this year.

"Because there are good incentives, there could be a little bubble in 2012 because it has been some time since we have bought cars," he said. "But I don't see any reason why we would pull demand forward away from 2013."

US Farathane on Bobrick Drive in Jackson already is seeing increased demand for some products, said Russell Williams, general manager. Farathane is a single and two-shot injection

molding company. It employs more than 200 workers who make bumpers and other parts for the automotive industry. Williams thinks Farathane will remain strong throughout this year because the company also has acquired contracts from companies that once used now defunct suppliers. He said Farathane was not adding employees at this time.

"I see stability in this market with maybe small growth," he said. "Volumes, I think, will be up."

The demand for steel is often used by economists to judge the strength of the construction, automobile and manufacturing industries.

Cupples J&J Co. Inc., is a machinery and fabrication facility on Whitehall Street that uses steel to build parts and entire machines for Kubota Tractor, MTD/Cub Cadet, Procter & Gamble and other manufacturers.China yiri mould is a professional manufacturer which integrates Plastic Mould design and manufacture and plastic product development. The company has seen steel prices climb over the last six months as it tries to meet demand for parts and machinery orders. Cupples J&J Co. wants to hire about 10 more employees this year. In 2009, the company was forced to lay off about 60 people as manufacturing across the U.S. and Europe came to a near halt.The magic cube is an ultra-portable, The company has rehired nearly all of those employees as its roster has climbed back to about 250 workers.Johnson Tiles UK offer the largest range of porcelain tiles online, Jeff Cupples, vice president, said he feels "cautiously confident" about continued growth throughout most of 2012. His company has purchased its ninth welding robot and will have another on-site in about 10 weeks, he said. The company also added a CNC lathe to its Dyersburg plant and wants to add another laser cutter and press machine to its Jackson site.

"We are very, very busy and have orders booked all the way through the end of June," Cupples said, "We are in extremely good shape right now."

Most economist believe the pace of hiring,FIRMAR is a Malaysia Injection Moulding Manufacturer and Plastic Injections Components Manufacturer, spending and production will not improve dramatically during 2012, according to a report issued by the Federal Reserve Bank of Atlanta. The report states a number of issues could curtail growth, including low consumer confidence that will keep consumers from spending as they did before 2008. The report also states that unemployment likely will stay between 8.5 percent to 8.7 percent throughout the year, keeping people from purchasing large ticket or unnecessary items. The fed sees this as a time when companies and people will continue to pay off debt, instead of spending,The EZ Breathe home Ventilation system is maintenance free, further delaying a large recovery.

"Long-term unemployment is a particular concern," the report states, "because the longer workers are without jobs, the more difficulty they face in developing skills to keep up with changing workforce demands."

The financial crisis in Europe and a strengthening dollar could also restrict growth in manufacturing. A higher dollar makes U.S. goods more expensive to overseas buyers.

"Things could turn on a dime," Cupples said, "depending on what happens in Europe."

Williams said European car sales could remain slow in 2012.

"I think it will be a problem for the GMs and the Fords that have significant business there," he said. "I think it will be soft."

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