Summary: USA manufacturing sector is facing many issues like high raw material and labor costs Supply chain resiliency will be key area of focus for USA manufacturing Automation will continue to shape production cycles for USA manufacturing More and more manufacturers are looking at ways to reduce their waste and carbon footprint - https://www.nasdaq.com/articles/expect-esg-to-be-a-market-driver-in-2022 Digital adoption and other innovations will shape the manufacturing sector - https://www.industrialtransformationnetwork.com/digital-transformation-1/articles/4-trends-that-will-dominate-manufacturing-in-2022 1. USA PMI - https://www.fxstreet.com/news/us-ism-services-pmi-falls-to-620-in-december-vs-669-expected-202201061500 2. USA – PMI = https://www.aa.com.tr/en/economy/us-manufacturing-pmi-continues-to-drop-in-december/2464296 3. Near shoring - https://www.nytimes.com/2022/01/05/business/economy/supply-chain-reshoring-us-manufacturing.html 4. FDI - https://globalbusiness.org/report/fdi-in-the-united-states-quarter-three-20211 5. Manufacturing - https://ca.movies.yahoo.com/u-manufacturing-activity-moderates-december-150356478.html 6. Skills - https://techhq.com/2022/01/addressing-the-labor-mismatch-in-us-logistics-and-supply-chain/ 7. Taxation - https://www.ey.com/en_br/tmt/how-us-tax-reform-impacts-the-technology-sector 8. Productivity - https://www.ey.com/en_br/tmt/how-us-tax-reform-impacts-the-technology-sector 9. Raw materials - https://www.consultancy.eu/news/7143/raw-material-prices-and-supply-shortages-skyrocket-in-7-charts 10. Labor rates - https://www.consultancy.eu/news/7143/raw-material-prices-and-supply-shortages-skyrocket-in-7-charts 11. Robots - https://www.controldesign.com/industrynews/2021/global-robot-density-nearly-doubles-ifr-reports/ 12. Innovation - https://www.ey.com/en_br/tmt/how-us-tax-reform-impacts-the-technology-sector

1. P A U L Y O U N G C P A C G A
J A N U A R Y 7 , 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 Manufacturing -
November 2021.pdf

5. USA Manufacturing / Shipments USA Manufacturing -
November 2021.pdf

6. PMI Index
Source - https://economics.bmo.com/en/publications/detail/222b6c00-6137-4d99-8893-
ba10c45ec2f5/ or https://economics.bmo.com/en/publications/detail/bb838caf-06a9-
4eaf-9ba6-57c2ca36dbd3/
ISM PMI - USA.pdf
Is This A Light Which I
See Before Me .pdf

7. Steel
Summary:
World crude steel production for the 64 countries reporting to the World Steel Association (worldsteel) was 143.3
million tonnes (Mt) in November 2021, a 9.9% decrease compared to November 2020.
https://www.worldsteel.org/media-centre/press-releases/2021/November-2021-crude-steel-production.html and
https://www.slideshare.net/paulyoungcga/steel-sector-canada-and-the-world-november-2021

8. AG Equipment
Summary:
Farmers continue to face higher input costs as part of their operations. Food costs are entering an era not seen
since the 1980s.
There are significant challenges facing the agriculture and food processing sector that need to be addressed
by all levels of government.
Governments around the world need to re-think their urban and rural strategy as part of looking at ways to
make housing more affordable as well as addressing issues with the supply chain.
https://www.slideshare.net/paulyoungcga/agriculture-and-farm-equipment-sector-november-2021

9. Class 8 Trucks
Summary:
The transportation sector continues to face many hurdles. The key to supporting the transportation sector will be its
ability to adopt innovation including clean energy solutions. It is also important for all levels of government to work
together to build a resilient supply chain including reshoring critical parts of the supply chain to better safeguard
government assets and protect the economy.
https://www.slideshare.net/paulyoungcga/transportation-sector-analysis-and-commentary-november-2021

10. Oil and Gas
New Mexico govt finances are benefiting from stronger oil prices
The USA is set to become the world largest exporter of LNG
Oil prices continue to be a concern in terms of inflation
https://www.slideshare.net/paulyoungcga/oil-and-gas-energy-sector-analysis-and-commentary-november-2021

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

12. 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