Here is my brief look at the USA manufacturing sector

1. P A U L Y O U N G C P A C G A
M A R C H 4 , 2 0 2 2
MANUFACTURING – USA – WHAT IS
NEXT

2. Paul Young - Bio
• CPA, CGA (1996)
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Customer Success Management
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: Paul_Young_CGA@hotmail.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
Twitter: https://twitter.com/paulyoungcpa
YouTube - https://www.youtube.com/user/youngercga1968/videos

3. Agenda
• USA Manufacturing / Shipments for August 2021
• USA PMI Index
• Reshoring / Manufacturing
• Steel
• AG Equipment
• Class 8 Trucks
• Oil and Energy
• Analytics / Manufacturing
• Climate Change / Supply Chain

4. USA Manufacturing / Shipments USA MFG - January
2022.pdf

5. USA Manufacturing / Shipments USA MFG - January
2022.pdf

6. PMI Index PMI - Services.pdf
PMI - MFG - USA -
January 2022.pdf

7. Steel
China's crude steel production down 3%
Most other top-10 countries increased output in 2021
Europe's crude steel production up 14.1%
https://www.slideshare.net/paulyoungcga/steel-sector-canada-and-
the-world-january-2022

8. AG Equipment
Last week, farmers, ranchers, and federal agency officials offered up their advice on how to do that to Congressmembers
in two separate hearings. The first hearing was dedicated to the conservation programs through which the USDA pays
farmers to adopt sustainable practices and take land out of production.
These programs—especially the Environmental Quality Incentives Program (EQIP) and the Conservation Stewardship
Program (CSP)—are uniquely popular among farmers and most farm and environmental advocacy groups. But the
programs don’t always deliver on their promises around improving soil health or maximizing carbon sequestration.
Source - https://civileats.com/2022/02/09/field-report-farm-bill-climate-action-vegan-fridays-meatpackers-usda-csp-eqip/ Blog –
Agriculture and Farm Equipment Sector – January 2022 - https://www.slideshare.net/paulyoungcga/agriculture-and-farm-equipment-
sector-january-2022

9. Class 8 Trucks
Summary:
Class 8 truck orders have plummeted in January 2022 - https://ontruck.org/january-class-8-orders-plummet-
compared-with-2021/
Record metal prices due to higher shipping costs - https://www.mining.com/web/americans-face-record-
metals-prices-as-shipping-costs-surge/
Inflation and Trucking - https://www.bloomberg.com/news/articles/2022-02-10/trucker-protests-threaten-
canada-with-inflation-negative-growth
My work - https://www.slideshare.net/paulyoungcga/warehousing-logistics-distribution-and-
wholesale-sector

10. Oil and Gas
https://www.foxnews.com/world/putin-ukraine-invasion-rationale-july-2021
The USA has increased its dependence on foreign oil - https://www.bloomberg.com/opinion/articles/2022-02-
22/biden-s-ukraine-response-is-mired-in-barrels-of-russian-oil
Oil prices have gone over $90/barrel
USA continues to lead the world with LNG exports
Gasoline prices continue to rise
https://www.slideshare.net/paulyoungcga/what-is-next-for-oil-and-gas

11. Reshoring of Manufacturing
Source - https://www.ttnews.com/articles/2020-events-force-manufacturers-rethink-reshoring-operation-plans

12. Supply Chain
Companies worldwide are adapting to the pandemic by shifting production closer to customers, but such
efforts to make supply chains more resilient also complicate tax obligations, EY said.
“There’s a lot of benefits that can be obtained” by overhauling global supply chains, according to Craig
Hillier, international tax and transactions services leader at EY. “But there are all these knock-on tax, financial
system, payroll, people, talent issues that need to be addressed as well.”
CFOs need to consider “a whole host of tax issues,” including exit tax cost and transfer of goodwill, Hillier
said Thursday during an EY webinar. At the same time, companies shifting supply chains might gain benefits
such as tax breaks and funding for employment and training, he said, noting “there’s a lot out there at the
moment that companies can take advantage of.”
https://www.cfodive.com/news/supply-chain-overhaul-brings-benefits-tax-complexity-
ey/617973/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202022-01-
31%20CFO%20Dive%20%5Bissue:39446%5D&utm_term=CFO%20Dive
My work: https://www.slideshare.net/paulyoungcga/what-is-next-for-the-global-economy-january-2022-
251041058

13. Mitigating Climate Change
• Building a resilient supply chain
• Moving to zero-waste
• Adoption of policies related to the circular economy
• Adopting ESG reporting
• Adopting risk and crisis management reporting
• Continue look at ways to better management of water
• Work with insurance providers on how manage insurance costs.
Source - https://www.slideshare.net/paulyoungcga/how-to-mitigate-the-threats-of-climate-change-september-2021

14. Industry 4.0
Summary:
Businesses around the world continue to look at how best to optimize their business operations including advance manufacturing.
ESG is pushing both the private and public sectors to revisit their environmental, social, and governance policies and
procedures. https://www.pwc.com/ca/en/media/release/pwc-canada-study-shows-esg-reporting-falls-short-across-
canadas-top-150-public-companies.html or My box folders -
https://ibm.box.com/s/vmyitcackqevvm1hcxv7wke6gudrpnce or Accelerator -
https://community.ibm.com/accelerators/catalog/content/R6-Sustainability or My video -
https://www.youtube.com/watch?v=M-IEsfJWxXo&t=40s
My work: https://www.slideshare.net/paulyoungcga/what-is-next-for-industry-40

15. Summary
• USA manufacturing will continue to face many challenges
Blog -Manufacturing – USA – January 2022
USA MFG - January
2022.pdf
PMI - Services.pdf PMI - MFG - USA -
January 2022.pdf
Reliance, USA's
Sanmina announce partnership for electronics manufacturing Business Standard News.pdf
Siemens Investing
$54M in Its U.S. Manufacturing Footprint to Support National Infrastructure Projects Business Wire.pdf
U.S. ISM
Manufacturing Index (February 2022).pdf
Manufacturing
Companies Overcome RPA Adoption Challenges - First Investors USA.pdf
Takeda lays out
$126M to tap robotics, virtual reality and more at California production site Fierce Pharma.pdf
America's
competitive edge is shrinking — Congress can reverse the trend TheHill.pdf
Congress must act
now to secure America's R&D leadership TheHill.pdf
Productivity.pdf Supply Chain
Solutions Reshoring And Offsetting The Great Resignation And Demographic Drought.pdf
U.S. manufacturing
activity regains speed; supply chains remain stretched Nasdaq.pdf
Summary:
Shipments of manufactured durable goods in January, up eight of the last nine months, increased
$2.9 billion or 1.1 percent to $270.3 billion, down from the previously published 1.2 percent
increase. This followed a 1.3 percent December increase. Machinery, up ten of the last eleven
months, led the increase, $1.0 billion or 2.7 percent to $38.9 billion. Shipments of manufactured
nondurable goods, up twenty of the last twenty-one months, increased $3.3 billion or 1.2 percent
to $266.7 billion. This followed a 0.1 percent December increase. Petroleum and coal products, up
eight of the last nine months, led the increase, $1.6 billion or 2.8 percent to $58.6 billion.
1. Electronics manufacturing - https://www.business-standard.com/article/companies/reliance-
usa-s-sanmina-announce-partnership-for-electronics-manufacturing-122030300312_1.html
2. Siemens - https://www.businesswire.com/news/home/20220304005025/en/Siemens-Investing-
54M-in-Its-U.S.-Manufacturing-Footprint-to-Support-National-Infrastructure-Projects
3. ISM - https://www.businesswire.com/news/home/20220304005025/en/Siemens-Investing-
54M-in-Its-U.S.-Manufacturing-Footprint-to-Support-National-Infrastructure-Projects
4. RPA - https://firstinvestorsusa.com/2022/03/03/manufacturing-companies-overcome-rpa-
adoption-challenges/
5. Robots - https://www.fiercepharma.com/manufacturing/takeda-lays-out-126m-to-tap-robotics-
virtual-reality-and-more-at-california
6. Competitiveness - https://thehill.com/opinion/technology/596255-americas-competitive-edge-
is-shrinking-congress-can-reverse-the-trend
7. Innovation - https://thehill.com/blogs/congress-blog/politics/596839-congress-must-act-now-
to-secure-americas-rd-leadership
8. Productivity - https://www.bls.gov/news.release/prod2.nr0.htm
9. Reshoring - https://www.forbes.com/sites/paulnoble/2022/03/02/supply-chain-solutions-
reshoring-and-offsetting-the-great-resignation-and-demographic-drought/?sh=4682c8636cb0
10. Supply chain - https://www.nasdaq.com/articles/u.s.-manufacturing-activity-regains-speed-
supply-chains-remain-stretched