Summer vacations provide a time for rest and reflection. While relaxing in the sun in August, we could not help but reflect on a critically important piece of business, economic and policy news you won’t often see reported in the mainstream press. What is this headline? China is losing the first salvo of the trade war with the US. While no one – except perhaps President Trump himself – believes that trade wars are “easy” to win, the victor of round 1 appears hard to dispute. Regardless of where you sit – either by industry or manufacturing supply chain tier – it’s clear that on an overall economic basis, China is taking a greater beating than the US. According to Trading Economics, the Caixin China’s Manufacturing PMI (formerly the HSBC PMI), “fell to an eight-month low of 50.8 in July of 2018 from 51.0” and both output and new … [Read more...] about China Takes a Beating in Round 1 of the Trade War
Industry News
Illinois Burdens Manufacturers With Its Latest Get out of Debt Plan
Governing 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
Unraveling the Complexities: China & US Relations
If one subscribes to the narrative as presented by media headlines, it would appear that the relationship between China and the US is languishing at an all-time low. Some of this may simply be misunderstanding due to a lack of direct dialogue. For example, evidence suggests the “spy balloons” were likely anything but after further examination, despite US headlines during the crisis that stoked serious vitriol within the Chinese politburo initially, without functional relations between the countries to deescalate the situation. And of course issues concerning Taiwanese sovereignty and the South China Sea continue to reach potential flashpoints on a weekly basis. Nevertheless, beneath the frosty rapport between the US and China lies a host of internal challenges within China itself — separate from its relations with the West. China is … [Read more...] about Unraveling the Complexities: China & US Relations
Managing Through Tariffs — the End of the China-to-U.S. ‘Chicken Run’
As 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’
Surplus Record Spotlighted on Fox Business Network’s “Industry Marvels”
Surplus Record was recently featured on the "Industry Marvels" series, which airs on the Fox Business Network. "The series is created by Andward Production Group, known for highlighting the most innovative and distinct manufacturers across North America since 2010. Surplus Record, with its history dating back to 1924, has become an indispensable resource within the industrial machinery and equipment domain. As a well-established online marketplace, it offers an expansive catalog of used, new, and surplus machinery, facilitating transactions that propel the manufacturing industry forward. The "Industry Marvels" segment on Surplus Record serves to highlight the company's dedication to quality and its pivotal role in modernizing the trade of industrial equipment. It is a significant acknowledgment from a series that profiles … [Read more...] about Surplus Record Spotlighted on Fox Business Network’s “Industry Marvels”
