Jim Mayer, Director at M-Wave, shares his thoughts about the challenges facing US manufacturing today and how they can improve their chances tomorrow.
Historically, recessions in the United States have tended to originate in the manufacturing sector. Each school of economic thought, Keynesians, Monetarists, Austrians, etc., have their own theories as to why it happens but regardless of the “why” the “where” has been fairly consistent. This last recession however was different.
Manufacturing found itself deeply wounded and it remains so today.
As we turn our attention to the imminent election and the changes that may, or may not, come from it, one of the likely consequences is that bank lending, in all forms not just residential, is unlikely to quickly return to pre-recession levels.
This means that manufacturing industry access to the financial leverage needed to ramp back up will not be available the way it has been during past recoveries.
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