New York Manufacturing Sector Showing Growth in May
The state of New York has seen both growth and decline in the manufacturing industry the past two months. The month of May was an encouraging time for manufacturers in the state of New York. According to the Empire State manufacturing index reported a +3 in May; a number that is above zero represents expansion, while a number below zero has a negative connotation.
There are a few reasons for this expansion of the manufacturing industry in New York, one of them being the addition of a new solar power plant that is being built in Buffalo, New York. This factory is looking to create around 5,000 jobs and make Buffalo the capital of solar power, providing the state of New York much needed variety in the manufacturing world.
New York is attracting large manufacturing companies that are looking to relocate. The state has become attractive to these types of companies due to tax breaks and credits that create jobs and establish the state in the manufacturing world. A leader in the printing industry is planning a large expansion to their New York plant to keep up with demand. This expansion is considered to add 54 jobs to the plant in addition to 70 full time construction jobs.
While May was a promising month, early reporting for June has been showing a decline in New York manufacturing. The Empire State manufacturing index reported a fall to -2 for June. The economy as a whole has shown an increase, but this has not extended to the manufacturing sector just yet. Many of the advancements made in May have yet to fully impact the industry while other factors continue to hold back the manufacturing industry should start to fade in the near future.
One significant contributor for the decline in manufacturing is attributed to oil prices decreasing which caused many drilling companies to withdraw some of their investment in a number of different areas including steel pipes, machinery in general and other goods. Oil prices have continued to climb over the past year which will take some of the pressure off drillers and help inject more life into the flat manufacturing in New York.