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Parting Shots

By Wm. R. Lowry
Editor & Publisher, MiBiz
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note-able quote

“I don’t know exactly where your future customers come from if they don’t have jobs.”

— President Barack Obama

gee whiz?

Facing down increasingly loud criticism over the failure of his nearly $1 trillion economic stimulus program to reduce America’s chronic unemployment, President Obama in December turned to the private sector for help.

The president asked his new, handpicked 22-member jobs and competitiveness council, comprised of business and labor leaders, to come up with new ideas for increasing hiring and boosting economic growth. He listed streamlining regulations and reforming tax laws as steps he would consider for creating jobs and bringing down the unemployment rate, still stuck at well over 9 percent.

White House favorite General Electric CEO Jeffrey Immelt was named to head the new council. Immelt said the council plans to deliver recommendations to the president within 90 days.

Praise for this initiative by the president has been less than universal, as voiced in comments posted on Manufacturing.net:

• “Until our politicians create a business friendly environment, I don’t expect great changes. Our progressive leadership is attacking business on all fronts with useless, unproductive legislation and excessive regulation on existing laws. (1) Repeal and replace Obamacare. (2) Enact the Fairtax. (3) Reduce or eliminate entitlement spending. (4) Reduce military spending. (5) Stop attacking successful entrepreneurs. (6) Most importantly Mr. President, please go play golf or basketball and get out of our way!”
• “Obama needs to ask his advisor from GE why GE isn’t making hair dryers, toasters, coffee makers, space heaters, etc. etc. here in the U.S.A.”
• “President Obama is listening to the wrong people. GE and all the other large to extra large corporations on his council are creating jobs by the thousands, in China, India and everywhere else in the world except the U.S. He needs to get some small business people involved. We have added 50 people to our payroll this year, which is an increase of 20%!”

Gee, maybe GE is the wrong jobs idea?

guys in white hats

Great news out of Tempe: the nation’s supply executives at the Institute for Supply Management just issued a sterling report on the nation’s manufacturing sector showing economic activity expanding for the 19th consecutive month.

The composite PMI index registered 61.4 percent, a level last achieved in May 2004. New orders and production, driven by strength in exports in particular, continue to drive the index. New orders are growing significantly faster than inventories, and the Customers’ Inventories Index indicates supply chain inventories will require continuing replenishment. The Employment Index is above 60 percent for only the third time in the last decade.

According to the index authors, the past relationship between the PMI and the overall economy indicates that the average PMI for January and February (61.1 percent) corresponds to a 6.5 percent increase in real gross domestic product (GDP).

ISM’s Employment Index registered 64.5 percent in February, which is 2.8 percentage points higher than the 61.7 percent reported in January. This is the 17th consecutive month of growth in manufacturing employment.

Closer to home, the greater Grand Rapids industrial economy is also experiencing accelerated growth, according to the survey compiled by Brian G. Long, director of Supply Management Research in the Seidman College of Business at GVSU.

The February survey’s index of business improvement, called new orders, advanced to +45, up from +25. In a similar move, the production index rose to +41, from +29. The index of purchases edged up to +33, from +29. The employment index rose to +35, up from +29.

Long said the recovery of the office furniture industry is part of the strong report, auto sales are expanding and business conditions for auto parts producers remain positive.

The evidence coming out of recent ISM reports and other indicators clearly shows that the oft-vilified industrial sector is leading the nation out of the Great Recession. Don the white hats proudly, guys.

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