Global Economy, Economic Environment, Recession, Money & Finance, GDP
Last month, I presented at the Industry & Economic Outlook Conference hosted by the National Fluid Power Association. I focused my presentation on the global manufacturing trends that are important to manufacturers. Below are some highlights from my presentation; you can view my slides here.
Global Economy, Economic Environment, Recession, Money & Finance, Currency, GDP
In an era full of “unthinkable” events, the world is now confronted with what might become the largest change in the global economic order since the end of the Cold War. Stemming from a close and angry UK election, we all woke up last Friday morning to find that the world’s fifth-largest economy
Relatively strong post-recession employment growth is not a statistical anomaly, though only a small portion of the gain is coming from internet and telecommunications jobs. GDP is underestimated, but it is consistently biased, and the gig and free economies are too small to explain the productivity gap. Rather than blaming statistics, analytical effort is better spent determining the root causes for slow productivity growth.
Global Economy, Competitiveness, Economic Environment, Labor, Money & Finance, GDP
When discussing employment data, it is imperative to remember that manufacturing is more productive than other sectors. In my report, I note that it takes about 5.8 full-time equivalent manufacturing jobs to achieve $1 million in value-added, versus 7.7 for both transportation and services and 16.9 for retail trade.
Americans are surrounded by manufactured goods at home and work— so how can the manufacturing sector represent only 11% of GDP? The explanation is that it doesn’t. MAPI Foundation research examining the full value chain reveals that manufacturing accounts for 32% of GDP. We also find that the manufacturing multiplier is almost three times as high as official data suggest.