Reporting on a trend that we ourselves have noted over the past year the New York Times is reporting today that “Small businesses that make machines and components for other manufacturers are experiencing an upswing that could be a sign of things to come for the broader economy.”
The article notes that industries which are growing (medical device manufacturers and oil & natural gas production for example ) are buying equipment at a rapid rate and small, advanced US manufacturers are, in many cases, the ones making and selling that equipment.
As proof of this trend the Times quotes Anthony Cracchiolo, president of U.S. Bank’s equipment finance unit: “U.S Bank’s lending through its Manufacturing Vendor Services division, part of the equipment finance unit, is up 15 percent this year from the same period of 2011. And last year’s lending level was up 26 percent from 2010.”
In the Hudson Valley this has been the case for several years, Firms which provide high value added products for growing industries are thriving.