Across the pond in America small businesses making machines and components for other manufacturers are experiencing an upswing that could be a sign of things to come for the broader economy.
The industries that fuel the demand vary with some cases, some coming from medical device makers, some from oil and gas producers supplying energy to growing economies in countries such as China and India, and others are getting a pop in sales from aerospace manufacturers that are busy building fuel-efficient aircraft and engines and needing special parts to get the job done.
As diverse as these manufacturers may be, they share two things in common: Their industries are expected to see continued growth and they’re investing in expensive machinery.
This small manufacturer machinery boom may seem at odds with an economy that is suffering from slow job growth following a world recession. The increase in demand for gear that businesses use to make a variety of machines, parts, tools and devices is a sure sign that companies are more confident and are willing to spend. And importantly they’re also getting loans from banks to buy the equipment sure evidence that lenders are feeling more secure.