Manufacturing facts: Manufacturing sector profitability is cyclical

04/23/2013

This week's excerpt from The Facts About Modern Manufacturing: Profits as a percentage of stockholders' equity fell in the four recessions experienced between 1980 and 2011. Nonetheless, aggregate profits and the rate of profitability rebounded with subsequent economic recoveries. Over this period, the rate of manufacturing sector profitability averaged 12.5% and aggregate profits reached a record high in 2011. Manufacturing Facts

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