Economic Think Tank Worried About Truck Manufacturing Sector
Posted on August 14, 2011 - Filed Under Business | Leave a Comment
There is no such thing as a perfect economy. If the economy is growing too fast, then there is inflation and that can be as damaging to an economy as high-interest rates for business, high-unemployment or consumer and business buying power. Too slow of an economy can yield unfortunate results too as anyone who has ever run even a small business has seen during recessionary times.
Today, the US economy is slowing down to what appears to be a flat economy or borderline recession that could last through 2009 into 2010. China's economy is overheating with inflation at 11%, which is much too high and very problematic. In the US we see that there is now excess capacity in both the trucking and railroad sectors, due to slow orders, slow retail, all of which we realize have to do with some issues in the housing sector.
Economic
No matter what the cause, the Online Think Tank is now worried about the Truck Manufacturing sector, because until the orders and need for inventory speed back up, there are no real need for new trucks. Indeed, even an initial modest uptick in orders would only take up the excess capacity available currently. Thus, it appears it will be quite a while until new truck and trailer orders will be robust as they once were.
What does this all mean for the trucking sector? It means lay-offs at truck manufacturers, and component makers until the economy returns. It also means cost cutting, longer receivables for their vendors and the small businesses that they contract with. These are fears of our economic analysts looking closely at the US Truck Manufacturing Sector.
Economic Think Tank Worried About Truck Manufacturing Sector
"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/. Lance's Bio
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