Manufacturing Unemployment & Tactics for EmployersBy Jason Busch and Lisa Reisman January 17, 2019It’s a good time for industrial job seekers. Not only is overall employment strong, but a scarcity of skilled talent has put many job seekers at an advantage, relative to the past. The health of the manufacturing economy and jobs growth is best told by the numbers. According to the U.S. Bureau of Labor Statistics, the total nonfarm payroll employment rose by over 200,000 jobs in August and the unemployment rate stood “unchanged” at 3.9%. And manufacturing employment for the year is “up by 254,000, with more than three-fourths of the gain in the durable goods component.” The macroeconomic climate for manufacturers (which will drive jobs trends in the months and quarters to come) looks as healthy as the jobs market. According to the Institute for Supply Management, the August PMI (manufacturing index) rose to its highest level since … [Read more...] about Manufacturing Unemployment & Tactics for Employers Industrial News Manufacturing and Supply Chain
China Takes a Beating in Round 1 of the Trade WarBy Jason Busch and Lisa Reisman January 17, 2019Summer 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 Global and International Industrial News Manufacturing and Supply Chain
China’s Economic Slump: Yes, It Impacts U.S. ManufacturersBy Jason Busch and Lisa Reisman January 17, 2019In the past, when CEOs mentioned China in earnings reports in a negative manner, it typically centered on supply chain issues such as delayed shipments, quality concerns, counterfeit or substitute materials, increased pricing or related “procurement” considerations. No longer. Despite the debate around trade deficits, IP transference and market economy considerations, China has become increasingly important from a top line perspective as well. And stagnation in segments of the Chinese economy have now impacted the top line of western manufacturers as well, creating a material impact on revenue and earnings. Consider Apple, a Fortune 5 manufacturer, as a case in point. When Apple’s CEO, Tim Cook, writes a letter to shareholders blaming Apple’s overall revenue/earnings slowdown on China as he did in early January, it is worth paying … [Read more...] about China’s Economic Slump: Yes, It Impacts U.S. Manufacturers Global and International Industrial News Manufacturing and Supply Chain