"American manufacturing is bottoming out and is poised for a modest recovery in the last quarter of this year," says Jerry Jasinowski, president of NAM. As the inventory hangover is worked off, and the cumulative effects of the tax cut and interest rate reductions begin to boost consumer spending, he expects 2 percent growth in the third quarter and a continuing economic recovery with more than 3 percent growth in the fourth quarter of this year.
If this prediction turns into reality, manufacturers that have slashed thousands of jobs during the first half of this year may find themselves facing staff shortages like those they were grappling with less than a year ago. Staffing needs can turn around quickly in the face of increasing demand. Manufacturers that have cut staff may find themselves unprepared to take advantage of rapidly increasing market opportunities, and scrambling to restore their workforce.