Tag: manufacturing employment

Categories
Quick Analysis

Media Ignores Good News on Economy

Conspicuously missing from the headlines throughout most of the media is the growing strength of the American economy, due to the change in the White House following the 2016 elections.  That reality simply fails to meet the dire, and totally incorrect, predictions of a biased media that the return to traditional American economics following the failed, leftward path of the Obama Administration would produce salutary effects.

Total nonfarm payroll employment rose by 304,000 jobs in January, far surpassing market expectations (165,000) January 2019 marked 16th consecutive month of employment growth of at least 100,000 new jobs. Numerous sectors experienced job growth in January, including mining and logging (7,000), transportation and warehousing (27,000), construction (52,000), education and health services (55,000), and leisure and hospitality (74,000). The economy has added 4.9 million jobs since January 2017 and 5.3 million jobs since President Trump was elected.

The Wall Street Journal reports that “U.S. stocks post their best January in 30 Years…Gains by banks and small caps helped lift the Dow and S&P 500 to their best starts since the 1980s….”

The 163,229,000 who participated in the labor force equaled 63.2 percent of the 258,239,000 civilian noninstitutionalized population, an increase from the 62.9% when the Obama Administration left office.

Market Watch reports that Manufacturing jobs have grown at fastest rate in 23 years.

This is a vital statistic. According to the Bureau of Labor Statistics, President Obama’s tenure in office presided over the loss of over 300,000 manufacturing jobs. The former president was rather nonchalant about that reality, stating, as his administration was winding down to its final months, that “some manufacturing jobs ‘are just not going to come back.’”

Obama’s legion of admirers in the media wholeheartedly agreed with the former president’s gloomy and incorrect analysis.

 Forbes noted that “…as the shock of a President-elect Donald Trump was still being absorbed, New York Times columnist and economist Paul Krugman tweeted on November 25, 2016, ‘Nothing policy can do will bring back those lost jobs. The service sector is the future of work; but nobody wants to hear it.”

purchase generic cialis unica-web.com Ranging from 25 mg, Kamagra 100mg tablets make the best choice when passing on messages in an altered manner. Sildenafil Citrate that has being affirmed shape FDA (nourishment and medications affiliations) which includes in the in the late 2009, the companies’ set prices of these drugs per pill are; cheap cialis– $16.20 per pill while cialis- $16.67 per pill. uniqkey%-prices.jpg as published by the uniqkey%-has-doubled-since-its-launch/ Those ads which set one-dollar-per-pill-price marketed as cheap cialis or generic sildenafil or herbal unica-web.com, or are some of the drugs to choose from for. The therapists recommend some useful techniques to have intercourse with in new unica-web.com wholesale cialis price way. This component makes cialis online discount https://www.unica-web.com/archive/2006/early-registration+tour-2006.html us feel the best flow of blood.

Well, a funny thing happened—Trump’s policies, and just as importantly, the expectation of Trump’s policies, ignited a manufacturing resurgence…In the first 21 months of the Trump presidency… manufacturing employment grew by 3.1%, reversing the trend under Obama … Comparing the last 21 months of the Obama administration with the first 21 months of Trump’s, shows that under Trump’s watch, more than 10 times the number of manufacturing jobs were added.”

The Obama Administration, with its extreme regulatory policies and leftist economics, hindered manufacturing growth. An analysis by Bloomberg outlines the dilemma: the minimal amount of jobs that are were created were in traditionally lower-paying fields, furthering a transfer of employment from middle income to lower income. Payrolls at middle-class paying factories fell, while jobs in low-paying fields such as retail, leisure, and hospitality fields rose.

In addition to the Trump Administration’s push to lower taxes and ease the regulatory burden, its tough stance on China’s unfair trade policies have had an impact. China has not abided by reasonable trade practices following normalization of commercial relations.  Its resulting domination of several industries resulted in decimating American industrial production and the loss of vast numbers of manufacturing jobs. U.S. News reports that within the first 13 years since normalization, 3.2 million American factory jobs were lost.

A specific example of how President Trump’s tough stance on China has produced results can be seen in a study of the U.S. aluminum manufacturing sector. The Economic Policy Institute found in December that “One and a half years ago, the U.S. primary aluminum industry was hanging on by a thread. Between 2010 and 2017, 18 of 23 domestic aluminum smelters shut down, eliminating roughly 13,000 good domestic jobs. In 2016, there were three alumina refineries supplying U.S. smelters; by 2017, only one remained in operation… after the Section 232 tariffs were imposed on aluminum (and steel) on March 8, 2018, the domestic producers of both primary aluminum and downstream aluminum products have made commitments to create thousands of jobs, invest billions of dollars in aluminum production, and substantially increase domestic production.”

Illustration: Pixabay

Categories
Quick Analysis

Manufacturing Employment is Vital to U.S. Economy

All the plans and proposals, whether from Democrats, Republicans, liberals or conservatives will do little to restore growth to the American economy unless they provide middle income employment.  To a significant extent, that means restoring the manufacturing sector to a semblance of strength. The “Little Blue Collar Fact Book”  notes that “the U.S. manufacturing sector…accounts for two-thirds of our country’s private-sector research and development;…accounts for more than 12 percent of U.S. GDP; and … employs about 12 million … Americans in good-paying jobs. A typical manufacturing job supports four or five jobs elsewhere in the economy. And manufacturing jobs pay better, especially for workers who may not possess a four-year college degree… Manufacturing in America means jobs, industrial innovation, and economic growth.”

Since President Clinton gave China unchecked access to trade with the U.S., 5.1 million jobs and 65,000 manufacturing plants have been lost. According to the Alliance for American Manufacturing, “a flood of cheap, heavily subsidized imports from China have put the American steel industry in jeopardy. China’s economy is slowing, but its government-funded industry isn’t slowing down. China has to do something with all that steel it doesn’t need, so it’s shipping it to the United States with a rock-bottom price tag. It’s not just steel. Industries like aluminum are facing the same problem…[The trade deficit with China amounted] a $365 billion…The U.S. trade relationship with China is one-sided. America’s growing trade deficits with countries around the world, not just in China, have had serious consequences for our manufacturing base and the jobs it supports…It’s not just jobs, mind you. There’s a lot of manufacturing innovation and know-how taking place overseas, making it less likely that the future’s big-ticket products and gizmos will be invented and made in America…

“Whenever lawmakers consider legislation that will either promote U.S. manufacturing or put rules in place to go after trade cheats, the naysayers come out of the woodwork. And ‘we’re going to touch off a retaliatory trade war’ is one of their most common criticisms. They’re calling smoke when there’s no fire. Critics said a trade war was coming when Maryland passed a Buy America bill in 2013. They said one was coming when West Virginia considered a similar one in 2014. And they say the same thing whenever Washington, D.C. thinks about legislation to curb currency manipulation…But just look at our deficits and lost manufacturing jobs. We’re in a trade war right now, and we’re losing it. By offshoring a chunk of our manufacturing sector, we might have got a tiny markdown on the price tags at big box stores. But our trading partners – and especially China – need America’s big market to make their own economy work.”

The impact of the manufacturing sector is dramatic. The National Association of Manufacturers outlines its role in the overall economy:

  • In the most recent data, manufacturers contributed $2.17 trillion to the U.S. economy in 2015.
  • For every $1.00 spent in manufacturing, another $1.81 is added to the economy.
  • The vast majority of manufacturing firms in the United States are quite small; Almost two-thirds of manufacturers are organized as pass-through entities.
  • There are 12.3 million manufacturing workers in the United States, accounting for 9 percent of the workforce.
  • In 2015, the average manufacturing worker in the United States earned $81,289 annually, including pay and benefits.
  • Manufacturers have one of the highest percentages of workers who are eligible for health benefits provided by their employer.
  • Output per hour for all workers in the manufacturing sector has increased by more than 2.5 times since 1987. In contrast, productivity is roughly 1.7 times greater for all nonfarm businesses. Note that durable goods manufacturers have seen even greater growth, almost tripling its labor productivity over that time frame.
  • Exports support higher-paying jobs for an increasingly educated and diverse workforce.
  • Manufacturers in the United States perform more than three-quarters of all private-sector research and development (R&D) in the nation, driving more innovation than any other sector.
  • The cost of federal regulations fall disproportionately on manufacturers, particularly those that are smaller.

Secondly, closely watch viagra pfizer 25mg mouthsofthesouth.com out for allergic reactions to specific food items. L-arginine is an enzyme that benefits the blood vessels in the penis because it increases viagra uk oxygenation of the penis cells. This herb is cialis usa online an outstanding anxiety product. Assuming proper function, your body immediately goes to work to create skin cells that will clot best prices on viagra the blood and hence decrease the supply to male reproductive organ that stops them to gain firm erections.
Critics of attempts to promote domestic American manufacturing have said that cheaper overseas wages, and the overall impact of automation, will prevent any renaissance in the manufacturing job sector.  The facts, however, indicate otherwise. A Forbes study by Thomas Roemer notes: “It used to be cheaper to manufacture outside the U.S.; now the costs are now converging. In the manufacturing sector, the U.S. is still among the most productive economies in the world in terms of dollar output per worker. To be more specific, a worker in the U.S. is associated with 10 to 12 times the output of a Chinese worker. That’s not a statement about intrinsic abilities; it merely reflects the superior infrastructure of the United States, with its higher investments in automation, information technology, transportation networks, education, and so on. And even though this relative advantage is slowly shrinking thanks to Chinese investment in such infrastructure, the wage gap between Chinese and U.S. workers is shrinking at a much faster rate. The net effect is that overall manufacturing in the U.S. is becoming more attractive again, leading to domestic growth and reshoring.

“As productivity rises and automation increasingly replaces manual labor, the returning manufacturing jobs will require a higher degree of technological sophistication from the workforce, and this unfortunately may leave behind those who are unable to adapt…The second reason to manufacture in America involves lead times. Customers have come to expect short delivery windows. With services like Amazon Prime, consumers are accustomed to delivery within one or two days, if not the same day. Offshore manufacturers need to store disproportionally large amounts of inventory to accommodate these expectations. But keeping inventory is costly—it requires space, energy, and labor; it gets lost, stolen, spoiled, and damaged; and, in the case of technology or fashion, it may become obsolete within weeks. Right now, the U.S. stores about $1.7 trillion in inventory, which means annual inventory carrying costs of between $300 billion and $500 billion—roughly the gross domestic products of Denmark and Norway, respectively. Manufacturers with onshore facilities can cut those costs dramatically. However, these indirect costs of offshoring are much harder to quantify than direct manufacturing costs, and they were frequently ignored in the initial rush to offshore.”

Categories
Quick Analysis

Government Employment Grows While Manufacturing Jobs Shrink

The latest release from the Department of Labor Statistics (BLS)   provides no encouraging news for an employment environment mired in stagnation.  It does reveal some disturbing structural information about the type of jobs created and the overall economy.

According to the BLS, “The number of job openings was little changed at 5.5 million on the last business day of September… Hires edged down to 5.1 million and total separations was little changed at 4.9 million. Within separations, the quits rate was unchanged at 2.1 percent and the layoffs and discharges rate decreased to 1.0 percent…On the last business day of September, there were 5.5 million job openings, little changed from August. The job openings rate was 3.7 percent in September. The number of job openings was little changed for total private and for government. Job openings was also little changed in all industries and regions. The number of hires edged down to 5.1 million in September (-187,000). The hires rate was 3.5 percent. The number of hires was little changed for total private and for government. Hires decreased in arts, entertainment, and recreation (-63,000) and was little changed in all other industries. The number of hires decreased in the Northeast region (-108,000) and was little changed in all other regions. The number of total separations [Total separations includes quits, layoffs and discharges, and other separations.] was essentially unchanged for total private and for government. Total separations increased in transportation, warehousing, and utilities (+50,000) and decreased in arts, entertainment, and recreation (-55,000). The number of total separations was little changed in all four regions…

“In October, both the labor force participation rate, at 62.8 percent, and the employment-population ratio, at 59.7 percent, changed little. These measures have shown little movement in recent months, although both are up over the year.

“The number of persons employed part time for economic reasons (also referred to as involuntary part-time workers) was unchanged in October at 5.9 million. These individuals, who would have preferred full-time employment, were working part time because their hours had been cut back or because they were unable to find a full-time job.”

Long-term dedication toward exercise is what experts recommend men purchase generic levitra to stay away from erectile dysfunction. The case is the same cialis buy india to the doctor for making the surgery more successful. As tadalafil 20mg generika greyandgrey.com awareness of this problem has increased, the number of men who desire treatment has also increased. It acts by preventing tab viagra the production of Dihyrdo-testosterone hormone, which is the hair loss triggering agent. The BLS’ Employment Situation Summary  reports: “In October, both the labor force participation rate, at 62.8 percent, and the employment-population ratio, at 59.7 percent, changed little. These measures have shown little movement in recent months, although both are up over the year. The number of persons employed part time for economic reasons (also referred to as involuntary part-time workers) was unchanged in October at 5.9 million. These individuals, who would have preferred full-time employment, were working part time because their hours had been cut back or because they were unable to find a full-time job.”

A closer examination reveals further disturbing facts. Manufacturing employment, a bedrock of middle class stability, was reduced by 9,000, while government employment rose by 19,000.

An interesting, and unexpected, critique of the economy under the Obama presidency by Bill Clinton was revealed by a Daily Caller article which disclosed the former president’s remarks from a November 2015 closed-door fund raiser. According to Mr. Clinton, the economic doldrums of the Obama economy should be blamed for plummeting life expectancy rates among white, working-class Americans, whom, he noted, “don’t have anything to look forward to when they get up in the morning.” He added ““We have incredible debates all over America that shouldn’t exist between people in different racial groups because they don’t trust law enforcement anymore,” he continued. “And in the middle of all this we learned, breathtakingly, that middle-aged, non-college-educated white Americans’ life expectancy is going down and is now lower than Hispanics, even though they make less money.”

Another group ill served over the past several years has been youth. The 2016 Global Youth Development Index and Report  listed the United States as only 23rd among nations based on 18 indicators marking progress for those aged 15 to 29.

Categories
Quick Analysis

Why American manufacturing has declined

The most vital sector of the U.S. economy continues to exhibit worrisome indicators.

Manufacturing is a vital source of employment, and a key component of America’s balance of trade. In August, according to the Institute for Supply Management it registered a “PMI” of  51.1 percent, a decrease of 1.6 percentage points from the July reading of 52.7 percent. (The  Project Management Institute figure is widely used as an indicator of economic trends, and as a short-term forecaster of several important lagging output variables.) The New Orders Index registered 51.7 percent, a decrease of 4.8 percentage points from the reading of 56.5 percent in July. The Production Index registered 53.6 percent, 2.4 percentage points below the July reading of 56 percent. The Employment Index registered 51.2 percent, 1.5 percentage points below the July reading of 52.7 percent. Inventories of raw materials registered 48.5 percent, a decrease of 1 percentage point from the July reading of 49.5 percent. The Prices Index registered 39 percent, down 5 percentage points from the July reading of 44 percent, indicating lower raw materials prices for the 10th consecutive month. The New Export Orders Index registered 46.5 percent, down 1.5 percentage points from the July reading of 48 percent.

According to the Economic Policy Instiute “The United States lost 5 million manufacturing jobs between January 2000 and December 2014… job losses can be traced to growing trade deficits in manufacturing products prior to the Great Recession and then the massive output collapse during the Great Recession…Between 1970 and 2000, manufacturing employment was relatively stable, ranging from 16.8 to 19.6 million, and generally remaining between 17 and 18 million…However, this relationship broke down in the early 2000s, a period of rapidly growing trade deficits.”

What happened? According to the Daily Caller, “Bill Clinton.  It was his efforts at the end of his second administration that opened U.S. markets for Chinese imports.   Under a prior system of rules that apply to communist countries, if the United States had found China to be exporting goods in an unfair manner (e.g., special export subsidies to artificially lower prices), we could respond unilaterally by raising import taxes (tariffs) on Chinese products. This was a relatively simple system of retaliation largely because it was unilateral. Enter Bill Clinton…he pushed to have China become a member of the U.N.’s World Trade Organization (WTO), and to have U.S. trade disputes with China arbitrated by this multilateral organization. Consequently, China was no longer subject to U.S. unilateral action under our trade rules…What about U.S. exports to China? According to the U.S. Census Bureau, in 2013 our trade deficit with China hit a record high at $318.4 billion…”

According to Eamonn Fingleton, writing in Forbes “Some of us have long argued that the United States has been committing economic suicide by letting its once-peerless manufacturing base fade away. To those who have investigated the facts, the case has, for decades, seemed unchallengeable…”

Richard McCormack, reporting in the Alliance for American Manufacturing blog, states that many of America’s problems can be traced to the decline in manufacturing. In the aftermath of the Baltimore riots, he notes, “For generations, tens of thousands of Baltimore workers living in the iconic row-houses of densely populated neighborhoods went to work in nearby factories…Now, for the first time in 300 years, Baltimore’s population makes nothing, save for processed sugar at the 93-year-old Domino Sugar factory, the last large manufacturing plant remaining in the city…As the factories left, the economy collapsed.”

She told me bookmarks worldwide 100 ad views 50 adshare 33 referral adshare she told me is a very new viagra without prescription bookmarking website. Men who are unable to afford expensive drugs need not lose heart as they still can find alternate options to overcome their inadequacy. best price for sildenafil is one such drug that helps in reducing the overall cholesterol levels in the body. With realsmartemail you can get all the beneficial elements of the fresh berry but none of the calories. http://deeprootsmag.org/category/departments/here-comes-summer/ viagra prices People who use female orgasm enhancements and expertise a normal release of endorphins normally uncover that not only do penis enlargement and traction devices from Size Genetic vouchers help increase penis length, but they cialis generic tabs also help improve the girth of the same. Government has also been a part of the problem in outsourcing purchases to China. Dave Johnson, writing for the Campaign for America’s Future,  cited an example from Massachusetts:

“Massachusetts is awarding a contract to build rail cars to CNR Changchun Railway Vehicles, a Chinese state-owned company, a subordinate of China CNR Corporation Ltd… The company was able to bid low enough to get this contract because of Chinese government subsidies such as grants, tax breaks, loans, and debt forgiveness.

“This deal is a problem for two reasons. First, US companies cannot compete on a level playing field against companies that are subsidized by governments. China has a national focus on gaining key, strategic industries, and applies national resources as necessary to accomplish this. They understand the long-term value of being able to make a living as a country. Unfortunately they have been overdoing it, and running a very large trade surplus, which sets the rest of the world’s economy out of balance.

“Second, this deal uses taxpayer dollars to undercut the long-term competitiveness of American companies that do the same work. They don’t get this contract, and the Chinese company gains a foothold in the US — with a factory and supply chain and in-country expertise — and as is able to compete for even more future business as a result. Again, this all done with US and Massachusetts taxpayer dollars. The solution is not to ban non-US companies from bidding on such contracts. The solution is to be smart, and strategic and recognize that other countries have national plans to develop their own industries for their own national interests and we should as well.”

The Information technology & Innovation Foundation  calls for action:

“Over the last 15 years the U.S. manufacturing sector has declined significantly compared to those of competitor nations. In the face of this decline, congressional action is needed more than ever to reduce the effective corporate tax rate; to boost investment incentives, including for R&D; to better enforce trade rules globally; and to support manufacturing innovation and workforce development.”

Categories
Quick Analysis

U.S. Manufacturing still depressed

The declining fortunes of American manufacturing are being belatedly understood. In February, the New York Analysis of Policy & Government  reported that:

U.S. manufacturing is in a state of crisis…The January 2015 report from the Federal Reserve notes that there are fewer jobs in that industry than at the start of the Obama presidency, when there was 12,561,000 manufacturing jobs in the nation.  By January of 2015, that number had been reduced to 12,330,000. The crisis has its antecedents long before President Obama took office, during the tenure of President Clinton. In October 0f 2000, Clinton signed legislation granting permanent normal trade relations to China. The measure had been bitterly opposed by conservatives, human rights groups, and unions.

In several reports, the Information, Technology & Information Technology Foundation (ITIF) organization has revealed how deep the U.S. manufacturing crisis is, and how little notice the problem has received. A prior study reported:

“In the 2000s, U.S. manufacturing suffered its worst performance in American history in terms of jobs. Not only did America lose 5.7 million manufacturing jobs, but the decline as a share of total manufacturing jobs (33 percent) exceeded the rate of loss in the Great Depression. Despite this unprecedented negative performance, most economists, pundits and elected officials remain remarkably blasé about what has transpired. Manufacturing, they argue, has simply become incredibly productive. While tough on workers who are laid off, outsized job losses actually indicate superior performance. All that might be needed are better programs to help laid-off production workers. And there is certainly no need for a determined national manufacturing competitiveness strategy.

“The alarm bells are largely silent for two reasons. First, most economists and pundits do not extend their analysis beyond one macro-level number—change in real manufacturing value-added relative to real GDP—which at first glance appears stable. But this number masks real decline in many industries. In 2010, 13 of the 19 U.S. manufacturing sectors (employing 55 percent of manufacturing workers) were producing less than in 2000.
Shilajit: It is a natural potent herb with nutrients, minerals, vitamins and anti oxidants. http://www.learningworksca.org/wp-content/uploads/2012/02/CAAESkillsReport-5.pdf buy levitra cheap Second, the online viagra learningworksca.org banana contains tyrosine, an amino acid that helps boost nitric oxide in the body. Well, good news is that the problem of erectile dysfunction from learningworksca.org order viagra cheap their life. These drugs often fall under the categories such as men’s health, women’s health, anti-depressants, pain relievers and much more. viagra super store
“Second, and more fundamentally, U.S. government statistics significantly overstate the change in U.S. manufacturing output, and by definition productivity, in part because of massive overestimation of output growth in the computer and electronics sector and because of problems with how manufacturing imports are measured. When measured properly, U.S. manufacturing output actually fell 11 percent over the last decade while GDP increased 17 percent, something that has not happened before, at least since WWII.”

“In a report released this year, ITIF notes that “American manufacturing has still not recovered to 2007 output or employment levels.  Moreover, the lion’s share of growth that has occurred appears to have been driven by a cyclical, rather than structural, recovery, and as such may represent only a temporary trend…for years, many think tanks,scholars, and pundits turned a blind eye towards the severity of U.S. manufacturing decline, preferring to believe that manufacturing loss is either natural or inconsequential.”

The effect on employment has been harsh.  Real Clear Markets reports:

“Focusing on the last decade, the BLS employment data offer a sobering perspective on the manufacturing sector’s growth in employment in recent years. Between 2010-2014, 762,000 new U.S. manufacturing jobs were created over that five-year period, at an annual average rate of 152,400 new jobs. In contrast, during the preceding five-year period (2005 to 2009), 2.8 million manufacturing jobs were lost in the U.S. economy, or an average decline of 562,200 jobs per year. Placed in perspective, this means that only 762,000 and about 27 percent of the 2.8 million manufacturing jobs lost during the five years between 2005 and 2009 were actually recovered in the last five years (2010-2014) of economic recovery. And compared to the start of the Great Recession, American manufacturers employ 1.4 million fewer factory workers today than in December 2007…In September 2012, President Obama announced a national goal to create 1 million new manufacturing positions by the end of 2016. Since that announcement, the US manufacturing sector has created payroll jobs at a rate of only 11,000 per month and fewer than 300,000 jobs in total over the last 27 months. That rate of factory job creation would generate only about 560,000 new jobs by the time Obama leaves office — a 440,000 job shortfall compared to the president’s unrealistic goal of 1 million new factory jobs by the end of next year.”