Greetings from London, dear readers. This week, we find ourselves traversing the UK engineering marvel that is “Crossrail.” Crossrail, a product of over a decade of meticulous planning and development, is a new 72-mile train line that burrows under virtually all of Central London, significantly reducing many journey times. The planning team behind it asserts that this mammoth project brings “an additional 1.5 million people to within 45 minutes of London’s main employment, leisure, and business districts.” Crossrail’s construction is an engineering triumph. It took eight powerful tunnel boring machines nearly three years to carve out 26 miles beneath London. Some sections of Crossrail lie as deep as 450 feet below the surface of London, far deeper than the subway or the “Underground.” Despite the hefty price tag of … [Read more...] about Infrastructure: Bipartisan Case for Investment (A Postcard from London)
Industry News
0% Financing is Back: Is Automotive and US Manufacturing in Trouble?
If you’ve tried to buy a new car or truck recently, you’ve likely encountered (even with good credit) interest rates in the neighborhood of 9-10%. For someone borrowing $50K for a modestly optioned Ford F150 (including taxes, registration, and fees), current monthly payments at these rates approach $1,100 over a 60-month term. That’s in the ballpark of $250 per month more than they would be at the 0% (or .9%) financing costs! Which, of course, helps explain why car sales are slumping and why both new and used cars are piling up on dealer lots. This is only part of the picture. Major manufacturers have spent 2023 producing cars that consumers don’t actually want: namely EVs. In fact, according to Copilot, dealers had (as of November 2023) over 253 days of supply for the Ford Mustang Mach-E sitting on lots. Chevy had 221 days of supply … [Read more...] about 0% Financing is Back: Is Automotive and US Manufacturing in Trouble?
3 Economic Expectations May be False: Importance of Seeking Alternative Perspectives
Whether you’re on the left or right, trust in mainstream news has declined precipitously in recent years, not only because of media bias, but also because much of what existing outlets proclaim will happen ends up being at best, misleading, and at worst, completely wrong. In fact, several well-known prognosticators have predicted that the next Presidential election will, in large part, be determined by podcasts and social media due to the dissolution of trust in traditional news sources. However, when it comes to business topics—especially those involving the US economy and manufacturing—information consumers do not have the same alarm bells built in when consuming news. Nor do many seek out (despite the existence of dozens of great sources) expert analysis that offers conflicting opinions on economics. We believe this means that … [Read more...] about 3 Economic Expectations May be False: Importance of Seeking Alternative Perspectives
How To Fix The Manufacturing Talent Gap
At a recent monthly meeting of local executives that we participate in, a recurring theme emerged: a significant loss of talent and skills in manufacturing, challenging to replace with new hires. A primary reason for this talent gap is demographic: the retirement of the Baby Boomer generation. Some sources indicate that 10,000 Baby Boomers reach retirement age daily, though not all are leaving the workforce immediately upon eligibility. Pew Research Center reports that by the end of 2021, nearly 50% of adults over 55 had retired. However, among those aged 55-64, less than 20% had chosen retirement. This specific age group is increasingly impacting manufacturers, many of whom are inadequately prepared in knowledge management to transfer these workers' 40+ years of experience to new recruits or systems. Deloitte Consulting and … [Read more...] about How To Fix The Manufacturing Talent Gap
Hybrids Are Hot!
You’ll notice the special new shiny cover the SR Catalog received this month! This is in celebration of the upcoming 100th year of Surplus Record printed catalogs, as we move forward into 2024. Our actual 100-year anniversary is in November 2024, so keep an eye out for a special edition that month! While we generally focus on a variety of topics, this edition takes a special look at a rapidly evolving sector in the automotive industry. This month, we turn our attention to a technology that many had written off in recent years but is now surging: hybrid vehicles. Remember the humble first-generation Toyota Prius? Originally driven primarily by environmental enthusiasts and tech- geeks (apologies for the generalization), the Toyota Prius ushered in a new era of hybrid drivetrains featuring gas and electric capabilities. Today’s market … [Read more...] about Hybrids Are Hot!
