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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Trade Disputes Impacting Investment in U.S. Manufacturing

09/12/2019

Economists recently surveyed highlighted that uncertainty over trade is restricting investment in manufacturing capacity. The report was carried in the September 6th edition of The Wall Street Journal.  Small-business confidence is declining concurrently with the Manufacturers’ Purchasing Managers Indexes with respect to Japan, South Korea, the UK and Germany. 

The report also noted that some production capacity in China is relocating to other Asian nations to avoid U.S. tariffs. Contrary to the intent of tariffs there does not appear to be a trend towards a return to the U.S.  Survey-company HIS Markit was quoted as stating, “trade wars and tariffs remain the biggest concerns among producers and the escalation of global trade war tensions in August encourage further risk aversion.” 

 

Uncertainty has resulted from decisions relating to imposition of tariffs on classes of goods without notice has resulted in a disinclination to place orders. It is axiomatic that business abhors uncertainty. An executive of a company manufacturing LED lighting commented, “Just give me the ability to plan and make smart business decision.  This lack of certainty is really, really hard.” The same could be said of any farmer as to whether to plant soybeans or corn or an alternative crop to be harvested six months hence.


 
Copyright 2019 Simon M. Shane