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?
Industry News
New Technologies and Data are Preparing for Covid-19 as a “Constant” 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 Preparing for Covid-19 as a “Constant” Throughout 2020
Contractors Represent Both Opportunity and Potential Risk for Manufacturers
While most people are not familiar with the details of what has been known as the “gig” or freelancer economy, chances are, however that you’re taking advantage of it. For example, if you took an Uber out to dinner last weekend to enjoy that extra glass of wine, then you took advantage of this new, non-employee universe. Uber is not alone in changing how we consume and employ temporary labor (for minutes, hours, days or longer). Like Uber, technology firms such as Wonolo connect pre-qualified and vetted workers (e.g., background check, drug screening) with general labor, warehouse operations, delivery/logistics and other opportunities for “on-demand” work. Why Freelancing is The Next Work Industry Wonolo is one of hundreds of online platforms and apps that serve business-to-business needs for matching work requirements with … [Read more...] about Contractors Represent Both Opportunity and Potential Risk for Manufacturers
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
