With demand racing well ahead of production capacity, the manufacturing sector continues to run hot. Moreover, with COVID-19 cases showing signs of decline, easing supply chain constraints and labor shortages should bode well for the manufacturing industry. Given this backdrop, manufacturing stocks such as TE Connectivity (TEL), Mueller Industries (NYSE:MLI), and Tredegar (TG) could be solid additions to your portfolio.According to J.P.Morgan Global Manufacturing PMI data, manufacturing production and new orders rose for the fourteenth successive month in August, indicating improved health in the manufacturing sector. Moreover, as material and labor shortages and supply chain disruptions start to ease with a drop in COVID-19 cases, production capacities should start improving. The manufacturing production in the United States increased 5.9% year-over-year in August 2021.
A substantial increase in new orders as economies worldwide recover, and continued investments in digital initiatives across production processes and supply networks should help the manufacturing industry regain momentum.
Therefore, fundamentally sound manufacturing stocks such as TE Connectivity Ltd. (NYSE:TEL), Mueller Industries, Inc. (MLI), and Tredegar Corporation (TG) could be solid bets now. They have solid growth attributes and are expected to continue gaining in the coming months.