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Tue May 12, 2020, 12:33 PM

Factories Close for Good as Coronavirus Cuts Demand

Factory furloughs across the U.S. are becoming permanent closings, a sign of the heavy damage the coronavirus pandemic and shutdowns are exerting on the industrial economy.

Makers of dishware in North Carolina, furniture foam in Oregon and cutting boards in Michigan are among the companies closing factories in recent weeks. Caterpillar Inc. said it is considering closing plants in Germany, boat-and-motorcycle-maker Polaris Inc. plans to close a plant in Syracuse, Ind., and tire maker Goodyear Tire & Rubber Co. plans to close a plant in Gadsden, Ala.

Those factory shutdowns will further erode an industrial workforce that has been shrinking as a share of the overall U.S. economy for decades. While manufacturing output last year surpassed a previous peak from 2007, factory employment never returned to levels reached before the financial crisis.

(snip)

The closures suggest that a growing share of the record job losses in recent weeks won’t be temporary, said Gabriel Ehrlich, an economic forecaster at the University of Michigan. The more that job losses turn from temporary to permanent, he said, the harder the hit to consumer spending and every company that relies on it—including manufacturers.

Layoffs have already wiped away nearly a decade of employment gains at U.S. manufacturers. Factories added 1.4 million workers from 2010 through the end of last year, employing a total of 12.9 million people in December. The manufacturing workforce has since dropped to 11.5 million, the Bureau of Labor Statistics said Friday, including 1.3 million jobs lost in April alone, though this also includes temporary layoffs. Manufacturers in recent years have pushed up output faster than they have expanded payrolls, in part by investing in automation. Since the pandemic took hold, capital investment by manufacturers has cratered.

(snip)

Chicago-based R.R. Donnelley & Sons Co. told analysts last month that demand for its printed signs and mailers fell as companies cut back on marketing over the past two months. The company is closing two printing plants in St. Louis and laying off 72 workers. Lenox Corp., a maker of china dishes including sets for the White House, is closing its last factory, in Kinston, N.C., and laying off 159 employees, who produced as many as 20,000 pieces of fine china each day.

More..

https://www.wsj.com/articles/factories-close-for-good-as-coronavirus-cuts-demand-11589122800 (subscription)



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Reply Factories Close for Good as Coronavirus Cuts Demand (Original post)
question everything May 2020 OP
FoxNewsSucks May 2020 #1
keithbvadu2 May 2020 #2
Maru Kitteh May 2020 #8
Greybnk48 May 2020 #3
JustABozoOnThisBus May 2020 #6
honest.abe May 2020 #4
Wellstone ruled May 2020 #5
roamer65 May 2020 #7

Response to question everything (Original post)

Tue May 12, 2020, 12:38 PM

1. If only we could get the public to realize

Labor and Demand are what drive the economy, not Capital and Supply.

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Response to question everything (Original post)

Tue May 12, 2020, 01:15 PM

2. MAGAts, don't be afraid to brag 'the Trump economy'.

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Response to keithbvadu2 (Reply #2)

Tue May 12, 2020, 10:46 PM

8. And also, MAGAts, don't be too proud to go pick some sweet cherries and asparagus for

$12 an hour. Make America pee green again.

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Response to question everything (Original post)

Tue May 12, 2020, 01:22 PM

3. I don't want anything that's made overseas.

I want my purchases to be made here in the USA, even if I need to pay more.

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Response to Greybnk48 (Reply #3)

Tue May 12, 2020, 02:57 PM

6. Unlikely. Steel, Rare Earth Metals, Pharmaceuticals, much comes from China ...

... because China is currently more willing to tolerate the pollution that such manufacturing creates. To make them without pollution would greatly increase the cost.

Pittsburgh and it's surrounding areas no longer have the steel-making capability the once had, but the air is a lot cleaner now.

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Response to question everything (Original post)

Tue May 12, 2020, 01:24 PM

4. This means there will be no sharp recovery.

Severe depression/recession next few months then a gradual recovery.

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Response to honest.abe (Reply #4)

Tue May 12, 2020, 01:40 PM

5. You are correct.

 

As one learns from Economics,when your best customer,your Employees,can not purchase your product,you are in deep trouble.

The Smart Economics People are forecasting a small economic uptick in the fourth quarter and it will take two full years or MORE for any reasonable economic business Cycle to really kick in. And that is only if both houses of congress are controlled by Democrat's. We are in for a extended cycle of deficit spending.
This is the DU member formerly known as Wellstone ruled.

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Response to honest.abe (Reply #4)

Tue May 12, 2020, 03:25 PM

7. There may not be a recovery.

Last edited Tue May 12, 2020, 04:01 PM - Edit history (1)

After every recession, the ability of the US economy to recover gets weaker and weaker. If the Federal Reserve resorts to negative interest rates, that will be a definite mile marker on the path to permanent stagnation.

Watch the velocity of money stats. If it tanks, we are in for a world of hurt.

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