Manufacturing areas lead surprise job comeback

[ClarkUSA]

With http://www.marketwatch.com/story/jobless-rate-falls-to-10-as-job-losses-shrink-2009-12-04">job losses at their lowest level in almost two years and national unemployment dropping 0.2% to 10%, here's another spot of good news that is a nice surprise:

CONOVER, N.C. – As record numbers of orders flow through Legacy Furniture Group's manufacturing plant, workers toil between towers of piled foam and incomplete end tables precariously stacked five pieces high. With a 10 percent sales growth this year, Legacy has quickly forgotten the recession's low point in March, when weak order volumes forced the company to implement four-day work weeks.

In November alone, the company that specializes in furniture for the medical industry added a half-dozen employees to its staff of 35. These days, everyone is clocking overtime and the 40,000-square-foot factory is starting to feel awfully cramped....Legacy's recent success highlights a trend: Counties with the heaviest reliance on manufacturing income are posting some of the biggest employment gains of the nation's early economic recovery. This is a big change from just half a year ago, when some economists worried that widespread layoffs by U.S. manufacturers might be part of an irreversible trend in that sector... Here in Catawba County, where native hardwoods and access to power have made the region a historical hub for furniture manufacturing, the unemployment rate dropped from a peak of 15.6 in March to 13.6 percent in September.

Elkhart County, Ind., meanwhile, saw such a startling surge in layoffs one year ago that President Barack Obama made a stop there in the opening weeks of his presidency. The unemployment rate there, driven by job cuts at RV manufacturers, spiked in March at 18.9 percent, but has fallen steadily ever since — to 15 percent in September... "Manufacturing jobs are here to stay, and they're coming back," said Derald Bontrager, president and chief operating officer of Middlebury, Ind.-based RV maker Jayco Inc., which recalled or hired 200 laid-off workers over the summer to help ramp up production after an unexpected sales boom overwhelmed all-time-low inventories and left the producer unable to meet demand...

In western North Carolina, widespread manufacturing layoffs were a theme that predated the recession — largely due to foreign competition. Yet Catawba County has been able to find some new employers eager to tap the available work force: Target Corp. opened a distribution hub in August, Apple Inc. is building an East Coast data center just 30 miles down the road from a similar Google Inc. server farm that opened last year as county recruiters brand the region as a "data corridor."

http://news.yahoo.com/s/ap/us_stress_map_manufacturing

:)

[Deja Q]

1. "tap the available local talent", surely?

Everyone else, it's "talent". For the US, it's "work force".

Funny, that.

[jpak]

2. Umm.... 'scuse me - good economic news is not allowed.

It only emboldens Obama cheerleaders and makes anti-Obama doomers look stupid.

:hi:

:thumbsup:

[ClarkUSA]

20. lol! Sorry about that... it seems I've gotten into a bad habit.

;)

:hi:

[Sky Masterson]

3. Everytime I hear someone say that we don't make anything anymore

I want to scream!We make all sorts of stuff.
I own a very small plastics manufacturing company and business is growing (slowly, but in the right direction).Americans can make anything and very well I might add.
We just need buyers.
Next year looks to be very profitable for me. :)

[ClarkUSA]

5. "Next year looks to be very profitable for me."

It's so good to hear that. Congratulations! :hi:

[Sky Masterson]

6. Thank you

:) :hi:

[mkultra]

13. do you do small casting?

ive always found plastics interesting. Ive seen people make resin forms and run equipment that stretches plastic over forms.

[Sky Masterson]

21. It's a very small specialty shop

One of the items I make are Safety tubes for the bus industry.
I make several different colors.
Much of the production of these tubes end up in Elkhart,Ind
Elkhart is like the Bus and RV manufacturing capital of America.
:)
I make other things too.

[mkultra]

26. i see.

are those foam of hard? i don't think i have seen those on a bus before. My interest in plastics comes from my participation in SCA or medieval fighting. Many people make real steel armor but many more will hand cut and heat shape pieces into armor. Ive done it myself and i find it interesting the way plastic shapes at certain temperatures.

[mkultra]

7. lets hope

good luck to you and good luck to us all.

[Sky Masterson]

10. I believe it will.

And of course good luck to us all. :)

[Peacetrain]

11. That is wonderfullll

WAY TO GO.. :)

[Ikonoklast]

30. Besides being the largest manufacturer of finished products on the planet Earth,

and the third largest exporter (by dollar amounts) of all products, food, finished goods, raw materials, etc., we really suck.

Reality needs to pay a visit to the people here who continuously moan, "We don't make anything here anymore!".


Glad to see your business is picking up.

[safeinOhio]

69. I keep hearing how we are a big exporter.....

Then there is the balance of trade with China?
It is heavy industry that worries most. Steel, cars, ships, the things that might come in handy for our national security. Can't be buying tanks made of steel we have to get from China.

[Egnever]

74. plastics manufacturing?

Like say plastic bags? I am actually looking for some info on getting an item made that I have come up with any chance you could do something like that?

PM me if it sounds like something you could handle and would be willing to take the time to discuss.

[Garam_Masala]

80. You are so correct...we are still the largest manufacturer in the world

we just dont make many consumer goods, of the type you buy in Wal-Mart, Sears, K-Mart etc.
We make lots of pharmaceuticals, aircraft, military hardware, software, medical devices etc.
We are tops in chemicals & fertilizers & lumber products.

[Vinca]

4. I'm bothered by manufacturing numbers because the production

of hamburgers (Mickey D's, Wendy's, etc.) was thrown into the mix during the Bush regime to make things appear rosier than they really were. If manufacturing numbers are going up, it might be because people can only afford a dinner out at a burger joint.

[mkultra]

8. frankly i have no idea what the hell your talking about

restaurant and service are never part of the heavy manufacturing numbers. I think you got a hold of some bad acid. This sounds like one of those "whisper facts" that is impossible to refute because its completely made up.

[TalkingDog]

33. Agree not heavy mfg. But fast food is considered mfg.

And bakeries are considered factories too, regardless of size.

[mkultra]

40. maybe by some but not those who produce these stats

Its just not true.

[TalkingDog]

57. I would like to retract half my assertion: Fast food is NOT mfg.

However bakeries, regardless of size are. Manufacturing is defined as the process of transforming raw materials into finished goods that can be sold. And so by the standards of those who produce the statistics is consider manufacturing.

edited for clarity

[Vinca]

38. I wish it was bad acid.

http://www.nytimes.com/2004/02/20/business/in-the-new-economics-fast-food-factories.html

[mkultra]

39. Uh, i hate to bring this up brother

but that article points to a question posed by junior to congress. Not to an actual change. I think that may just be a piece of flotsam that washed up on your beach a while back.

[ClarkUSA]

99. You can rest easy: "McDonald's sales take hit from US joblessness" (12/8/09 AP sourced link -->)

"CHICAGO (AP) -- The supersized recession that was a boon for business last year caught up further with
McDonald's Corp. in November, as high unemployment ate into sales."

http://finance.yahoo.com/news/McDonalds-sales-take-hit-from-apf-3524063237.html?x=0

[mkultra]

9. let me be the first in this thread to invite the debbie Downers to

enjoy their crow.

[Peacetrain]

12. John Deere called back over 400 here.. and that is hard manufacturing

[ClarkUSA]

14. That's great. I hope that all this news points to next year being even better on the jobs front.

As Pres. Obama said at his Economy and Jobs Forum townhall, "The trend line looks good."

:hi:

[Peacetrain]

15. It is.. We are headed in the right direction finally..

:hi:..

[ClarkUSA]

95. Yes., we are. I'm as happy as you are about it, too.

:hi:

[Historic NY]

16. One day at a time....

small steps lead to bigger onse once confidence comes back.

[ClarkUSA]

98. Yup.

That's the only way to get back to solid economic ground again.

[brentspeak]

17. This is what's known as a brief crest in an L-shaped depression

It's expected that there will be temporary periods of "not so bad" in a situation the U.S. is facing. There needs to be a colossal revamping of our ruinous "trade" policy with the cheap-labor nations like China, Mexico, Vietnam, India, etc. for there to be a permanent reason to smile.

[ShortnFiery]

24. Well put brentspeak. :-) eom.

[girl gone mad]

44. Yes, but the fundamentals will continue to be ignored..

while these withering little green shoots are hyped as if they signal some genuine recovery. That's the current state of our economy. A crumbling middle class ruled by oligarchs and their puppet government who refuse to make the slightest of sacrifices in the name of the greater good. As long as the masses keep buying the propaganda, their rigged game will go on.

[Hekate]

54. Thank you so much for that note of encouragement.

A journey of a thousand miles begins with a single step.

Hekate

[brentspeak]

68. But there isn't a "single step"

That was girl gone mad's point. A "single step" in regards to the nation's economic future would mean some fundamental change in policy. Without a change in policy, however small, a report about a few more people being called back to a factory for temporary work gives the misleading impression that the future of the nation's economy is turning the corner, when, of course, it couldn't.

[ClarkUSA]

76. lol

:thumbsup:

:hi:

[ClarkUSA]

78. Whatever. It's known as "good news" to most Americans.

:eyes:

[boomerbust]

18. Excellent

Good news is on the way.

[Kdillard]

19. Very good news. I am hoping that in 2010 we see this trend continue and the Jobs bill

Helps things even more.

[Moochy]

22. K&R

ClarkUSAUnderground rules!

[Fire1]

23. More good news. K&R.

[Odin2005]

25. BOOYAH!

[PBS Poll-435]

27. Not really a surprise

And I really like good news!

K/R!

[Garam_Masala]

28. Main and only reason manufacturing will be on the rise in USA---->

Cheaper dollar! The more dollar falls, the cheaper it is to make
goods here compared to other manufacturing behemoths.

However cost of anything imported from gasoline, cars, clothes,
shoes, electronics, etc will be higher.

[PBS Poll-435]

29. Dollar up on unemployment numbers...

http://online.wsj.com/article/BT-CO-20091204-711135.html?mod=rss_Commodities

[ShortnFiery]

31. ...

Every thing's fine. :evilgrin:

[PBS Poll-435]

32. Gettin' better... nt

[ShortnFiery]

35. ... yep.

Countdown to Free Fallin.' 10 ... 9 ...

[PBS Poll-435]

36. Not likely... nt

[ShortnFiery]

37. Well not for the upper 1%. After all, they have our tax dollars.

[bertman]

50. Holy Shit!! Any report on the condition of the guy taking that bull photo?

[Garam_Masala]

42. You are looking at the short term blip in dollar..look at this longer term chart

Look at the trend for 1 year...dollar is falling long term.

http://www.bloomberg.com/apps/quote?ticker=DXY:IND

[ClarkUSA]

43. Not really. "Dollar rises on unexpectedly strong employment data" (Dec. 5, 2009)

NEW YORK, Dec. 4 (Xinhua) -- The U.S. dollar rose across the board on Friday as the latest non-farm employment
report was much better than expected, suggesting that the U.S. Federal Reserve may lift interest rates earlier than
expected.

http://news.xinhuanet.com/english/2009-12/05/content_12592336.htm

In fact, the dollar has been strong recently, so this rise in manufacturing doesn't seem tied to a weak dollar as you are asserting.

[Garam_Masala]

46. you are looking at a short term blip..look at this long term chart dor US$

http://www.bloomberg.com/apps/quote?ticker=DXY:IND

[ClarkUSA]

63. The dollar is trending up now, however. As the good news continues, then so should the trend.

Of course, we don't want the dollar to get too strong against foreign currencies, but I doubt there's much danger of that at the moment.

[safeinOhio]

70. Best indicator of long term world economic trends

is the Baltic Exchange.

http://www.investmenttools.com/futures/bdi_baltic_dry_index.htm

goes back to the 15th century.

[ieoeja]

71. The US$ has been dropping against western Europe and Japan since April 1985.

There have been a few upward blips in that time, most notably in 1993 and again this year. But I doubt we are going to see the past quarter century trend reversed for very long.

Of course, it does make one wonder where all those people complaining about the dollar dropping the past couple months were for the year prior to that when the dollar was experiencing one of its rare upswings. Or for that matter where they've been the past quarter century.

My company actually did more work throughout most of this recession. But since 80% of our work is overseas, the rising dollar wiped out our gains and then some. We are one business happy to see the dropping dollar.

[ClarkUSA]

75. Yes, but I was speaking about micro-trendlines.

<<My company actually did more work throughout most of this recession. But since 80% of our work is overseas,
the rising dollar wiped out our gains and then some. We are one business happy to see the dropping dollar.>>

I understand. It is possible to strike a balance and I hope that's where we're headed.

[mkultra]

49. actually, thats not the only reason

the recent recession wasn't just US based, it was global. Since most of our manufacturing is exported(e.g. not retail) a jump in US manufacturing shows a pick up in the global economy.

[Garam_Masala]

52. That is also true, but without a cheap dollar why would anyone

want to pay higher labor rates in US?

[mkultra]

53. because of the goods me produce

They are mostly high quality specialized items. The price is not really as much of an issue as it would be for retail goods.

[Garam_Masala]

55. absolutely correct..that is the really only area we can compete in

and to remain competitive in that area we need highly skilled workers
with world class education and motivation.

Do you know our corporate tax is the 2nd highest in the world?
Only Japan is very slightly higher. I am talking about industrialized
countries.

[mkultra]

62. did you know it was 90% in the 50's

The hay day of manufacturing.

[ieoeja]

73. On what do corporations pay taxes anyway?

Doesn't reinvestment or paying out dividends eliminate 99% of corporate profits leaving pretty much nothing on which to tax the corporation?

[Garam_Masala]

79. Dividends

are not tax deductible for corporations. Essentially dividends are taxed twice.
First the corporations pays tax on profits then individual pays again based
on his tax bracket.

[ieoeja]

82. EVERYTHING is taxed multiple times.

The person buying the corporation's product did so using money on which they had been taxed upon receiving it. Odds are they then paid a sales tax during the transaction. Which is what will probably happen again if the recipient of the dividends spends their dividends on goods. Then the providers of those goods will be taxed, etc.

Kennedy said something along the lines of "when a dollar changes hands five times, the federal government should have collected the entire dollar".

[mkultra]

84. its the transaction that is being taxed, not the actual dollar

the economy possesses something like 15 times higher value than actual money in circulation. That amount expands and contracts depending on the many factors.

[Garam_Masala]

90. WOW that Kennedy dude was such a genius

I wish he had 8 years in White House instead of 3 years and 8 months.
He was the most charismatic president at least since I immigrated to
USA in 1960.

[mkultra]

83. reinvestment is also not deductable

expenses are. Capital investments are deductible in a manner called depreciation which essentially represents the value of the object lost each year. I think it eventually equals the total amount after 27 years.

[Garam_Masala]

77. No it was 50% for corporations and 90% for individuals

and remember that when President Kennedy reduced taxes, US
had practically monopoly on manufacturing facilities and know how.
Germany and UK and Japan were pretty much bombed out.

[mkultra]

85. my bad, you are correct

thanks for the correction. im getting old.

[Garam_Masala]

89. Welcome to the club

I am no spring chicken myself hehe...keep on trucking!

[dreamnightwind]

88. Except most corporations don't pay ANY US taxes

"Do you know our corporate tax is the 2nd highest in the world?
Only Japan is very slightly higher. I am talking about industrialized
countries."

Sounds like something I'd hear on Faux News.

GAO: Most U.S. Corps. Don't Pay Income Tax
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3435028

..."The study says about two-thirds of American corporations paid zero income taxes to Uncle Sam between 1998 and 2005.

An even higher percentage of foreign corporations avoided federal corporate taxes. At the same time, said the GAO, the firms had trillions of dollars in sales."

[Garam_Masala]

91. Corporation NEVER pay any taxes anyways...they are all paid by

consumers & cutomers. Which is why I favor progressive tax on individual incomes.
The corporate tax just gets passed on to consumers and customers of the corporation.

Also, every corporation is owned at the end of food chain by some individuals.
By taxing those individuals at progressive rates, you avoid penalizing the
joe-6-packs who work in the corporation or holds a few shares in their 401-k's.

Another unintended consequence of corporate tax is that we penalize the most
efficient and reward the inefficient 2/3rds you mention.

Finally, corporate taxes put our domestic corporations at a disadvantage in
competing with foreign corporations. It encourages corporations to move
operations abroad.

When individuals are taxed at a fair progressive rate, the rich individuals
owning lots of corporate shares pay the lion's share of tax as it should be.

[dreamnightwind]

92. So which is it, and why were you chirping about our "high" corp. tax rates?

"Corporation NEVER pay any taxes anyways...they are all paid by consumers & cutomers."

Yet in your earlier post that I responded to, you went out of your way to trumpet the favorite RW talking point,
"Do you know our corporate tax is the 2nd highest in the world?
Only Japan is very slightly higher. I am talking about industrialized
countries. "

Re penalizing the 1/3 of corps that DO pay income taxes vs the 2/3 that pay no income taxes, I agree that's unfair, but not because the corporate income tax rate is too high, it's historically low. The problem is that tax law has not kept up with the corporate global shell-games, such as tax havens and ambiguity about what nation a corporation actually should pay its taxes in.

Re encouraging corporations to move operations abroad, they're being actively encouraged to do so by US government subsidies, not just because we tax them too much. And we need to resist the mentality of capitulating to corporate interests on the fear they'll leave, it just lowers corporate accountability world-wide when we do so. If they won't make reasonable contributions to domestic tax rolls, to hell with them, we don't need or want them. Seriously, the social democratic countries that are doing fairly well in the current economic crisis wouldn't lower themselves to such corporate give-aways, and neither should we.

[Garam_Masala]

93. Both!

Corporate taxes are not fair. The CEO making millions gets taxed
at max rate of 39%. Where as the chump collecting $200 in dividends
has paid the corporate tax rate...whatever it is for that corporation.

I would rather the high income pay 50% or more and corporation pay nothing.

Note that corporations are ALWAYS owned by some individuals..as share holders
or privately owned. It is more fair to make those high income individuals pay
higher rates than small stock holders and low paid employees.

[Garam_Masala]

94. The main point you are mising in your thinking is...

that corporations have INDIVIDUAL OWNERS at the end of food chain.
If a rich guy owns a million shares of IBM, let HIM pay the high rate
based on his high dividend income. Not the schmuck holding 50 shares
in his account.

[Cha]

34. Thanks for the really good news on our economy, Clark.

"Manufacturing jobs are here to stay, and they're coming back," said Derald Bontrager, president and chief operating officer of Middlebury, Ind.-based RV maker Jayco Inc., which recalled or hired 200 laid-off workers over the summer to help ramp up production after an unexpected sales boom overwhelmed all-time-low inventories and left the producer unable to meet demand..."

This is interesting..I like Derald Bontrager's enthusiasm:bounce:

[ClarkUSA]

41. You're welcome, Cha. I like your enthusiasm, too!

I was pleasantly surprised that this news made a headline. I hope the MSM picks up on it tomorrow.

:fistbump:

[girl gone mad]

45. This is anecdotal information which doesn't jibe with the hard data.

In analyzing the most recent BLS report, it's clear that we lost a total of 68,000 goods producing jobs, which were mostly replaced by lower paying retail/service jobs:

• 11,000 jobs were lost in total vs. 190,000 jobs last month.
  
• 27,000 construction jobs were lost vs. 62,000 last month.
  
• 41,000 manufacturing jobs were lost vs. 61,000 last month.
  
• 58,000 service providing jobs were added vs. 61,000 lost last month.
  
• 15,000 retail trade jobs were lost vs. 40,000 last month.
  
• 86,000 professional and business services jobs were added vs. 18,000 added last month.
  
• 40,000 education and health services jobs were added vs. 45,000 added last month.
  
• 11,000 leisure and hospitality jobs were lost vs. 37,000 last month.
  
• 07,000 government jobs were added vs. 0 added last month.

[Pirate Smile]

47. Kick for good news. I can't believe how much some people are invested in having everything turn to

sh@# (or continue as sh#$). The idea that we could be at the beginning of an actual recovery must be rejected.

[firedupdem]

48. Rec'd! Excellent...thanks for the info! n/t

[bertman]

51. Great News!! I can't wait til it trickles down to us contractors. The early 2010 schedule

ain't looking all that hot where I come from--about 150 miles east of Catawba County.

[Hekate]

56. This is very encouraging! Thanks, ClarkUSA for starting a great thread.

:fistbump:

Hekate

[ClarkUSA]

72. You're welcome, Hekate! I'm happy to offer FACTS despite the many unrecs by the usual Failers.

:fistbump:


:hi:

[JTFrog]

58. K&R

[Tarheel_Dem]

59. Thanks for some uplifting news for a change. From the responses, I'm sure...

"Ignored" doesn't like this news. Why would anyone want the US economy to fail? Are they that invested in being right, and the administration being wrong? :wtf:

[quaker bill]

60. some folks

will be truly disappointed when the economy recovers this spring.

This recession is already of unusual length. 18 months is a more typical duration. Pent up demand resulting from the abnormal length of this correction might even result in a stronger recovery than many expect. Unortunately for the downers, the world will not be coming to an end.

[old mark]

61. Funny - nothing on this on the TV "news", but I did see CNN is still

saying that Obama's popularity poll is down again - they have been saying that since Thursday, though.
I thought nothing else was happening....

Thanks - Rec'd.
I really expect to see the manufacturing numbers much higher by spring, continuing to climb. I bet the GOP really hates this.

mark

[RUMMYisFROSTED]

64. Interesting sidenote: "...the company that specializes in furniture for the medical industry..."

I wonder what it means.

[ClarkUSA]

65. Dentists' chairs, physical therapists' tables, emergency room furniture, etc.

That's my guess. It's a niche sector, obviously. I'm happy for them, in any case.

[RUMMYisFROSTED]

66. No, I mean in regards to what the med. industry sees in it's future.

Especially regarding the HC bill.

[ClarkUSA]

67. The stimulus plan released millions to struggling local community health clinics across the nation

Perhaps these clinics are spending some of that money now to refurbish/remodel or expand their services to accommodate
a wider public. As for your thoughtful question re: "what the med. industry sees in it's future" there can only be educated
speculation.

[Aramchek]

81. well, well more progress for Obama, but I thought he was a Corporate Nazi?

:sarcasm:

[ClarkUSA]

87. lol! Some bitter folks still haven't gotten over him winning last year so they spew bullshit 24/7.

But this kind of good news is the kind of fact that no amount of Outrage can detract from.

:fistbump:

[BREMPRO]

86. Oh No! not MORE good news. I can't take it. n/t

[ClarkUSA]

97. lol

:hi:

[RepublicanElephant]

96. k&r

yes we can!