Illinois Burdens Manufacturers With Its Latest Get out of Debt PlanBy Jason Busch and Lisa Reisman November 17, 2019Governing Illinois, where Surplus Record is located, is a thankless job. Perhaps that is why at the end of his term, J.B. Pritzker will have been the second billionaire in a row to attempt to do right by his state. And it won’t be easy. Truth in Accounting, a non-profit, ran a calculation in 2018 suggesting that the average Chicago resident, on a per capita basis, is on the hook for nearly $130K in city and state debt. What got the state (and city) into this mess was, in large part, Springfield, the state capital, rubber stamping both budgets and pension schemes for decades without any way to pay for them short of issuing debt. In other words, the checkbook was open, but there was no money in the bank account — except an IOU tucked away in a safe deposit box. The bad news for those governing Illinois is that residents not only can … [Read more...] about Illinois Burdens Manufacturers With Its Latest Get out of Debt Plan Industrial News Manufacturing and Supply Chain
Managing Through Tariffs — the End of the China-to-U.S. ‘Chicken Run’By Jason Busch and Lisa Reisman November 17, 2019As Surplus Record goes to press, U.S. manufacturers are once again threatened with the potential of having to manage through a new round of China tariffs. Never mind the fact that in 2018, 12 out of 18 manufacturing industries in the U.S. saw record profits, despite tariffs, according to a recent MetalMiner analysis. Regardless, if you ask a typical procurement manager today about tariffs, he/she will generally have nothing but negative things to say about their impact. A recent ISM (Institute for Supply Management) study that asked procurement managers in manufacturing if they “believe that tariffs have raised the price of the goods that you produce and deliver to your customers,” 59% of survey participants said “yes.” According to the ISM findings, the average price of goods raised to customers was 6.8%. However, only 30% of … [Read more...] about Managing Through Tariffs — the End of the China-to-U.S. ‘Chicken Run’ Global and International Industrial News Manufacturing and Supply Chain
The Coming Presidential Election: More Economic and Trade Debate NeededBy Jason Busch and Lisa Reisman November 17, 2019The 2020 Presidential Election promises to be one of the most contested elections in US history. According to The New York Times, 25 candidates (23 Democrats and 2 Republicans) are already running for the highest elected office in the United States. If you’re curious about the other Republican candidate in addition to Donald Trump that is running, it’s none other than libertarian Bill Weld – about as opposite to Trump a candidate can get in terms of trade policy. This may prove more harmful to the Democrat cause within the historic blue-collar base which has been the largest beneficiary of low unemployment and Trump’s approach to trade. From a quantitative perspective, the actual numbers speak to Trump’s comparative success in recent quarters and the impact of his controversial trade policies on the overall economy. From October … [Read more...] about The Coming Presidential Election: More Economic and Trade Debate Needed Industrial News Manufacturing and Supply Chain
Is the August PMI Decline Cause for Concern?By Jason Busch and Lisa Reisman November 17, 2019For the first time in nearly three years, the PMI (manufacturing index) registered in negative territory, declining to 49.1 for August 2019. This represents a decline of 2.1 points (or percentage points as ISM reports) from the July report. For those not familiar with the ISM indexes, manufacturing (PMI) and non-manufacturing, a number above 50 indicates economic growth within the sector, whereas a number under 50 indicates contraction. This reported number may (or may not) be cause for concern. But it is important to put this information in context. In this regard, ISM indexes are a composite index of underlying components. These individual elements are also measured on the same scale. According to ISM spokesman and chair of the Manufacturing Business Survey Committee for ISM, Timothy Fiore, “the New Orders Index registered 47.2%, a … [Read more...] about Is the August PMI Decline Cause for Concern? Industrial News Manufacturing and Supply Chain
The Final Burial of Democracy in Hong Kong?By Jason Busch and Lisa Reisman November 17, 2019Over two decades ago, I hired an old friend from prep school to lead the Hong Kong office of a fast-growing sourcing tech company I worked for. A Westerner with strong Chinese language skills and a graduate student in Asian history, he took a somewhat eccentric British pride in riding his old Triumph motorcycle around the streets of Hong Kong, the loud bike harkening back to the old days of British rule every time it backfired, perhaps. There is no rumble of that old motorbike anymore. While the latest tariff waves and currency devaluation rumbles have captured the U.S. and China headlines of late – as the overall situation appears to continue to deteriorate, perhaps for the better, perhaps for the worse – what we find just as fascinating and as important to understand China’s ambitions is its continued crackdown on the last … [Read more...] about The Final Burial of Democracy in Hong Kong? Global and International Industrial News Manufacturing and Supply Chain