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US Services Sector Holds Up. But The Storm’s Comin’
Good news, bad news. Which do you want first?
I'll break with precedent and start with the good new
We know that those type of manufacturing jobs aren’t coming back to the US, Lutnick himself let that slip in a recent interview. But…in a world of rapidly accelerating automation and robotic developments, the idea of bringing manufacturing back to the US makes perfect sense. The advantage of cheap labor is fading. If something doesn’t change, then in a decade even more capital will have been deployed overseas and supply chains will be even more deeply entrenched, China will still be the main manufacturing hub and yet the factories will be devoid of people and so could have existed closer to the source of energy for production and closer to the consumer for finishing. i.e. in the US. It is completely disingenuous to frame reshoring manufacturing to the US as a boon for manufacturing jobs, but as a long term plan for the health of the US economy, it makes sense.
Might not mean much to some, but West Marine store near me, and people at the registers on overtime, knowing their own sales history at the beginning of boating season here were surprised with me that there was no one in the store. Empty, new one on me, even during recession, I never saw it before.