The economy has shown marked signs of recovery in the past couple months, potentially bringing it back to normal levels.
As growth accelerated, business could pick up across numerous industries, including manufacturing. Should small- to medium-sized manufacturers see larger orders than usual as a result, these companies may have a need for purchase order financing.
According to Fannie Mae's Economic & Strategic Research Group, fiscal constraints should keep growth below 2 percent for the first half of the year, but it is expected to pick up in the second half of 2013 and into 2014, helping bring the economy back to normal levels.
"At the outset of the year, we forecasted that 2013 would witness sustainable but below-par growth as the economy begins its transition to more normal levels," said Fannie Mae chief economist Doug Duncan. "Halfway through the year, our view is little changed. We expect approximately 2.1 percent growth over the course of 2013, up from the anemic pace of 1.7 percent in 2012."
One of the bright spots of the economy recently has been the employment situation, which continued to get positive news to begin June, as initial jobless claims were lower than expected, the U.S. Department of Labor reported.
Should economic growth heat up, U.S. manufacturers could begin to see additional business. If it comes in the form of large orders from big-box retailers, such as Target or Walmart, or other big companies, demand for purchase order financing could rise.
To fill these orders, small- to medium-sized manufacturers often need to rely on some sort of financial assistance. This type of lending agreement allows them to obtain up to 100 percent of the funds needed to fill an order.