The Trump Administration was great for the American manufacturing base. The tariffs, the pro-worker policies, the focus on making America’s once-great manufacturing sector great once again, all of it helped push the factories that produce the goods used in the real economy higher and higher, thus increasing both jobs and profits.
Team Brandon, unsurprisingly, hasn’t been as good for the manufacturing base, which is now at its weakest since Covid and the lockdowns ravaged the American industrial base in 2020.
News on that comes from the Institute for Supply Management’s (ISM’s) Manufacturing Business Survey Committee chair, Timothy Fiore, who had this to say in a statement:
“The December Manufacturing PMI® registered 58.7 percent, a decrease of 2.4 percentage points from the November reading of 61.1 percent.”
Breitbart reports that IHS Markit later revised the number down to 57.7
Adding to that analysis, Sian Jones a senior economist at IHS Markit, said:
“December saw another subdued increase in US manufacturing output as material shortages and supplier delays dragged on. Although some reprieve was seen as supply chains deteriorated to the smallest extent since May, the impact of substantially longer lead times for inputs thwarted firms’ ability to produce finished goods yet again.
Adding to the sector’s challenges was an ebb in client demand from the highs seen earlier in 2021, with new orders rising at the slowest pace for a year, largely linked to a reluctance at customers to place orders before inventories were worked through. Alongside a slight pick-up in hiring, softer demand conditions contributed to the slowest rise in backlogs of work for ten months”
What that means is that Americans are ordering fewer goods and companies are having a harder time completing goods thanks to supply chain mismanagement and chaos; those still trying and able to produce goods are hamstrung by snarled supply lines.
Similarly to what Jones said about supply chains hurting the manufacturing sector, Fiore added in his statement that:
“The U.S. manufacturing sector remains in a demand-driven, supply chain-constrained environment, with indications of improvements in labor resources and supplier delivery performance. Shortages of critical lowest-tier materials, high commodity prices and difficulties in transporting products continue to plague reliable consumption. Coronavirus pandemic-related global issues — worker absenteeism, short-term shutdowns due to parts shortages, employee turnover and overseas supply chain problems — continue to impact manufacturing.”
But that’s just the supply chain issue. Worker turnover is still a major problem, with jobless benefits and Covid restrictions keeping people out of the workplace, and a global chip shortage is seriously damaging those manufacturers that create goods that use microchips.
As a result of that supply chain chaos and other issues, the manufacturing sector is at its weakest since December 2020, a time when Covid restrictions were still in effect in many areas. Thanks, Brandon!
This story syndicated with permission from Will – Trending Politics