Post Labor Day report says recovery is fragile

This year’s report focuses on the uncertainty facing manufacturers and examines specific legislation, laws and regulations that will have a detrimental impact on the economy.
image
By SCMR Staff
September 08, 2010 - SCMR Editorial

The National Association of Manufacturers (NAM) today released its annual economic report entitled “Labor Day 2010: The Impact of Anti-Labor Policies on Working Men and Women.” This year’s report focuses on the uncertainty facing manufacturers and examines specific legislation, laws and regulations that will have a detrimental impact on the economy.   

“The most concerning fact is that for the second straight Labor Day, national unemployment remains well above 9 percent, and there are few indications people will go back to work anytime soon,” said NAM President John Engler. “Americans want jobs, but proposals that expand government, increase taxes and impose new regulations will make business in the United States less competitive. These proposals will stifle the already weak recovery and destroy manufacturers’ ability to create jobs.”

The most concerning fact is that for the second straight Labor Day, national unemployment remains well above 9 percent…

Several speakers at the recently concluded SCOPE West conference in Las Vegas made the same observations, noting that off-shoring would only become more attractive if U.S. manufacturers are not given more incentives for hiring. The U.S. Chamber of commerce has told SCMR that it, too, opposes legislation that will prevent small manufacturers from hiring again.

According to the “Labor Day 2010” report, manufacturing has the potential to produce long-term opportunities for U.S. workers more than any other sector of the economy.

“To the extent that there is a bright spot in the economy, it comes from manufacturing,” said Engler. “Production has risen since economic growth returned in the second half of last year, and manufacturers started hiring back some employees this year. We also saw a strong rebound in U.S. exports, which was very good news for manufacturers who account for nearly two-thirds of all U.S. exports.”

“We have had four consecutive quarters of economic growth, but much of the increase was temporary in nature,” said NAM Chief Economist David Huether. “More than half of the upturn in the economy over the past year was from business restocking inventories. Now, with inventory-to-sales ratios back to reasonable levels, this source of growth will likely fade.”

In looking at specific legislation, laws and regulations that could magnify the uncertainty that afflicts the economy – if poorly handled – the following could have a significant impact on American workers:

  • Expiration of the 2001 and 2003 tax cuts
  • The Environmental Protection Agency’s (EPA) proposed new regulatory regime to control greenhouse gas emissions and raise energy costs
  • Government implementation of the new health care law, with its numerous mandates on employers, insurers and consumers as well as a myriad of unintended consequences
  • Failure to achieve an ambitious trade agenda necessary to ensure and expand global market share for U.S exporters
  • Labor policies, such as the Employee Free Choice Act, that could rob the U.S. economy of its dynamic growth potential

In June 2010, the NAM released its “Manufacturing Strategy for Jobs and a Competitive America” to address fundamental challenges facing the U.S economy. The NAM’s “Labor Day 2010” report outlines these policies as a way to strengthen growth, employment and wages.

 



Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

With NFL training camps in full swing, it stands to reason that Congress must be replete with football fans, given how it basically has elected to punt on federal transportation funding yet again, with the Senate yesterday signing off on a ten-month bill to keep federal surface transportation funding intact through May 2015 through a nearly $11 billion stopgap measure.

Carload volumes were up 4.3 percent at 306,988, and intermodal volume for the week ending July 26 was up 3.3 percent at 264,809

Lyon, France-based Norbert Dentressangle, a $5.5 billion global third-party logistics (3PL) services provider focused on global logistics, transport, ocean, and air services, said today it has acquired Des Moines, Iowa-based Jacobson Companies, a value-added warehousing (VAW) company, for $750 million from private equity firm Oak Hill Capital Partners.

Download the newly released research report, "Transportation Management Systems" conducted by Peerless Research Group (PRG) on behalf of Supply Chain Management Review and Logistics Management magazines. Learn what logistic experts are saying about their current supply chain technology infrastructures, how they tackle the transportation component, and revealed the gaps that still need to be filled in order to attain end to-end visibility of a streamlined supply chain.

From cost center to growth center. Get insightful opinions on changes in the marketplace from this independent survey of warehouse personnel. Motorola Solutions examined the current warehousing marketplace in our 2013 Warehouse Vision Report, conducted April-May of 2013.

Article Topics

News · Global · Inventory · Manufacturing · Economy · Trade · Labor · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.