To understand the Q2 2021 inflationary environment — whether it will be sustained or not — it is important to turn to economists. Allan Meltzer, perhaps the most prolific historian when it comes to the Federal Reserve Bank, wrote in the Wall Street Journal: “The Fed’s recent behavior is in sharp contrast to the European Central Bank. The ECB keeps its eye on both objectives, growth and low inflation. It doesn’t shift back and forth from one to the other. The Fed should do the same. In the 1970s, because the Fed shifted from one goal to the other and back again, it achieved neither. Both inflation and unemployment rose on average, then fell together in the 1980s — after the Fed controlled inflation. … After 1985, Fed policy kept inflation and unemployment low. The result was 20 years of growth, and three of the longest peacetime … [Read more...] about Inflation and Politics: The Role of the Federal Reserve
Industry News
New Look & Feel, Same Commitment to You
97 years ago, when my great grandpa Thomas P. Scanlan started Surplus Record, he had a vision to connect dealers and manufacturers across the nation. World War I had ended a few years prior, and he saw a demand to get wartime machinery no longer being used, out of the hands of the government and into civilian manufacturing. He created the Surplus Record as an easy way for dealers to advertise their machinery to manufacturers and connect for joint ventures and lifelong partnerships. Nearly 100 years later, I know he would be proud to see how far Surplus Record has come over our company’s lifetime and how many relationships have been forged through our book and website. When my father came on board in 1982, the economy was in a depression, but it was gearing up for a big turnaround. Little did he know, the internet was coming and … [Read more...] about New Look & Feel, Same Commitment to You
How Manufacturing is Saving Vaccine Production in the United States
What do manufacturing facilities have to do with vaccine production and distribution? Expanding the coverage of vaccines globally is a critical goal, and expanding vaccine production simply wouldn't be possible without the help of manufacturing facilities. Let's take a look at key ways in which manufacturing is contributing to vaccine production and distribution in the United States. Onshoring Effects on Vaccine Production and Distribution The COVID-19 crisis has put a spotlight on the need to begin onshoring drug manufacturing back in the United States. The pandemic has played a large role in alerting Americans to the importance of shifting away from heavy dependence on other countries like India and China for active pharmaceutical ingredients (APIs), medical devices, and finished pharmaceutical products. With COVID-19 vaccine … [Read more...] about How Manufacturing is Saving Vaccine Production in the United States
New Technologies and Data are Key to Preparing for Covid-19 as a “Constant” in Business Throughout 2020
Manufacturers should prepare for Covid-19 to be a constant in business throughout the remainder of 2020. Why? While it appears there will be numerous vaccine candidates reaching later stage clinical trials for Covid-19 in the months to come, it is unlikely they will have a significant effect on the mass population in 2020 based on the statements of numerous medical authorities. Combine this with spiking cases throughout different regions in the country and we get a recipe for a situation where things may get worse before they improve. Manufacturers need to be prepared for this scenario. Many Surplus Record readers are familiar with the general guidelines that the National Association of Manufacturers (NAM) and others have published around Covid-19. These recommendations include: engaging public officials in lobbying for key legal … [Read more...] about New Technologies and Data are Key to Preparing for Covid-19 as a “Constant” in Business Throughout 2020
Private Equity in 2020: Is Now the Time to Sell/Partner For Manufacturers?
Private equity (PE) firms are some of the most likely buyers of manufacturers. Known as “financial buyers” rather than “strategic buyers” – e.g., another industrial firm or peer looking to expand its business – these organizations leverage a combination of their own cash and debt to fund their acquisitions. While private equity got a bad name in the 1980s during the heyday of the “leveraged buyout” or LBO market, today’s firms, especially those investing in manufacturers, look quite different. Granted, while they will still borrow 50% or more of the cost to fund many transactions, usually guaranteed against the cash flow of the business, many have truly become operators in terms of rolling up their sleeves with management to drive growth, creating operating efficiencies (often in procurement and supply chain) and driving the overall … [Read more...] about Private Equity in 2020: Is Now the Time to Sell/Partner For Manufacturers?
