Survey finds executives at small and medium size manufacturers pessimistic about U.S. economy.
The Financial Times reports that, according to consultancy RSM McGladrey, “[n]early 80 percent of senior executives at small and medium-size U.S. manufacturing companies are pessimistic about the prospects for economic growth.” The Times attributes the fact that “[m]anufacturing has held up better than the service sector” recently to the “resilience of companies that employ fewer than 2,000 workers,” which “account for about 40 percent of U.S. manufacturing production and make up 99 percent of the country’s manufacturers.” However, in the McGladrey survey, “[f]ewer than 40 percent of respondents said their businesses were ‘thriving and growing’ — down by 10 percent from last year and 19 percent from 2006.” Also, the report “[w]orringly” indicates that “small and mid-size manufacturers are retreating from the global economy just as large manufacturers…have offset falling sales at home by increasing market share internationally.” Still, “those companies with a global strategy reported on average a four percent higher gross margin.”
B’Man: I call on companies of every size, from a 3 or 4 man shop to several thousand employees (Nissan, Honda, Delphi, etc). With very few exceptions, they all are complaining about business and many have informed me that if something doesn’t give, they will be foirced to close their doors, or, at the very least, conduct massive layoffs (massive means up to half or more of their employees).
By and large, I don’t think it is that Big Money thinks the economy is good, but that if they begin to address the truth, they realize that it could all fall apart.
It is similar to sticking their heads in the sand to ignore the truth.
But just look at the “indicators” and see how bad things actually are. To understand the truth of the matter, please turn off your TV (especially Fox Noise) and read. Print media, especially Finacial publications, most especiially foreign, are addressing what the American Media is staying away from, by and large.
No use causing a panic by telling the truth. Right?