1992 Industry Outlook: Manufacturing

A 1992 outlook for the US manufacturing industries is presented. US automakers are depending on the federal government for more pre-election economic stimulus, plus an easing of planned or contemplated regulatory burdens. If they receive both, sales of cars and light-duty trucks could increase about 7% in 1992, to a modest but healthier 13.5 million units. The Pentagon's 1992 defense procurement budget is $65 billion, which is 50% less than the 1985 budget. With the dismantling of the USSR, procurement could drop an additional 5% a year in the 1990s. There will be more consolidation and reconfiguration among machinery makers in 1992, which will create new leaders and eliminate some older companies. If average prices increase 3%, the steel industry could break even in 1992 on sales of $39 billion. Sales in the chemical industry could rise by 5% this year, and earnings may increase by 16%. In the food-processing industry, the earnings of 11 large independent food companies could rise nearly 13% in 1992.