7 Manufacturing Trends You Must Watch in 2014


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To invest successfully in a company, you need to understand the industry. In this deck, the investors at The Motley Fool reveal the top trends to watch for in manufacturing for 2014.

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  • http://www.procurian.com/docs/research-papers/the-manufacturing-renaissance_opportunities-and-challenges-facing-us-manufacturing-today_final.pdf?sfvrsn=2
  • http://www.alixpartners.com/en/Publications/AllArticles/tabid/635/articleType/ArticleView/articleId/602/2013-Manufacturing-Sourcing-Outlook.aspx#sthash.o8wQSlmJ.dpbs
  • http://www.genewscenter.com/Multimedia/One-of-the-newest-natural-gas-storage-facilities-in-the-US-573.aspx
  • http://www.fool.com/investing/general/2013/12/14/proof-that-3-d-printing-will-change-aviation-forev.aspx
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  • http://www.fool.com/investing/general/2013/09/27/the-opportunity-in-carbon-fiber-car-parts.aspxhttp://en.wikipedia.org/wiki/Carbon_fiber
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  • 7 Manufacturing Trends You Must Watch in 2014

    1. 1. 7 Manufacturing Trends You Must Watch in 2014
    2. 2. Experts predict manufacturing will only fully recover to pre-recession levels by the fourth quarter of 2014. Here are the key trends investors should watch during the year.
    3. 3. 1. The Rise of “Reshoring” in America “[Outsourcing] is mostly an outdated business model at GE Appliance.” - Jeff Immelt, CEO of GE GE Model Kitchen at Kentucky’s Appliance Park in 1963 and today. Source: GE China’s cost advantage is shrinking dramatically as increased productivity has reduced U.S. labor costs.
    4. 4. 2. The Natural Gas Revolution Manufacturing is the largest consumer of natural gas… …and prices are four times higher in Asia versus the U.S. A new natural gas storage facility. Source: GE
    5. 5. 3. The 3-D Printing Boom A 3-D printed jet engine bracket. Source: GE “As 3-D printing takes hold, the factors that have made China the workshop of the world will lose much of their force.” - Harvard Business Review
    6. 6. 4. The Debut of the Industrial Internet What it does… • Increase machine operating efficiency • Reduce waste and downtime Siemens engineers. Source: Siemens press picture • Detect and prevent maintenance issues GE estimates the industrial Internet could add between $10 trillion and $15 trillion to global GDP – the size of today’s U.S. economy – over the next 20 years.
    7. 7. 5. The Lingering “Skills Gap” Increasing retirement rates Shortage of skilled workers Skills Gap By the numbers… • 11 million Americans unemployed • 4 million jobs that can’t be filled due to ‘skills gap’ • 5% of manufacturing jobs unfilled due to ‘skills gap’
    8. 8. 6. The U.S. Trade Deficit • Manufacturing matters. More than 50% of U.S. export value comes from trade related to manufacturing • The deficit’s shrinking. The U.S. trade deficit hit a 4-year low in November 2013 to $34.3 billion Intermodal containers transferred to ship. Source: Wikipedia
    9. 9. 7. High-Tech Materials The rise of carbon fiber… • Features a high strengthto-weight ratio • Could allow for 50%-70% mass reduction in materials Airbus A350, made of 53% composite materials. Source: Wikipedia • Still pricey, but industry demand expected to increase at a 10% annual rate to 2020
    10. 10. 1 Must Own Stock for 2014 • • • The Motley Fool’s chief investment officer has selected his No. 1 stock for 2014. It’s one of those stocks that could make you rich Just click below to access the report and find out the name of this under-the-radar company.