Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

5/31/2012 (2 years ago)

Catholic Online (www.catholic.org)

China, European economic slowdown may bog down world economy, U.S. industry 'bounce back'

American manufacturing is now staring at the oncoming threat of a global economic slowdown, after investing hundreds of thousands of dollars in high tech equipment; Drew Greenblatt's manufacturing business is beginning to see a return on that investment. Business had been up 20 percent last year at Marlin Steel, which makes wire baskets for industrial customers.

U.S. Treasury Secretary Timothy Geithner listens to Marlin Steel Wire Products board member Marshal Greenblatt during a tour of Marlin's factory in Baltimore, Maryland, earlier this month.

U.S. Treasury Secretary Timothy Geithner listens to Marlin Steel Wire Products board member Marshal Greenblatt during a tour of Marlin's factory in Baltimore, Maryland, earlier this month.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

5/31/2012 (2 years ago)

Published in Business & Economics

Keywords: Marlin Steel, China, intellectual property, Drew Greenblatt


LOS ANGELES, CA (Catholic Online) - Exports are currently helpful. The company has just shipped to China a $20,000 order made at his Baltimore, Maryland factory with steel supplied by a mill in Illinois.

Low wages and low-cost manufacturing used to make Chinese markets tough for U.S. manufacturers to break into. However, with rising wages in China, American companies are having second thoughts about moving their manufacturing jobs to China, Greenblatt said.

"All of a sudden, if your math says, 'I've got to pay the guy $7.50 an hour in Shanghai or I can hire a guy for $12 an hour in Canton, Ohio,' why would I do it in Shanghai?" Greenblatt says.

"I've got intellectual property issues over there, there's no rule of law, there's a lot of corruption.  Plus if I make it here, I get the stuff six weeks faster: there's no freight. So a lot of the reasons to push jobs overseas are starting to fall apart."

Other companies are "waking up to smell the coffee," as advice columnist Ann Landers used to say. A report in March by the Boston Consulting Group found seven industry groups, selling about $200 billion in Chinese-made imports, that will likely shift production back to the U.S. to evade rising costs in China. That could add between $20 billion to $55 billion to U.S. gross domestic product before the end of the decade.

U.S. export gains in Chinese and other global markets will create between two million and three million American jobs, lower the U.S. unemployment rate by between 1.5 to 2.0 percentage points and cut the U.S. merchandise trade deficit by 25 to 35 percent, according to the study.

Demand for Chinese exports is being hindered by the ongoing recession in Europe, China's largest trading partner. However, the hit to China's exports so far has not as been as bad as expected compared to the sharp downturn that followed the financial panic of 2008.

According to Carl Weinberg, chief economist at High Frequency Economics, lost exports amount to about $300 billion, about half the losses from the 2008 downturn and the Chinese economy is better able to weather the loss because it's large and its currency is stronger than in 2008, he said.

Weinberg figures the decline in exports hasn't run its course and could get a lot worse.

The slowdown in China is also starting to take a bite out of the economies of smaller, emerging economies and trading partners that supply the raw materials needed to feed China's export machine.

"Asia should be very worried if the European situation continues to unravel," Rob Subbaraman, chief Asia economist, at Nomura Group says. "It can handle moderate growth in Europe or the U.S. But if we start to move toward a deep recession there's a tipping point where Asia gets hit very hard again."

.

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for January 2015
General Intention:
That those from diverse religious traditions and all people of good will may work together for peace.
Missionary Intention: That in this year dedicated to consecrated life, religious men and women may rediscover the joy of following Christ and strive to serve the poor with zeal.



Comments


More Business & Economics

Game over: Saudi Arabia threatens to increase oil production to dangerously drive America out of the oil market Watch

Image of America's rising oil production has threatened Opec's control of the global oil market, but Saudi Arabia may be striking back, upping its own production in order to drive costs beyond the ability of American oil corporations to compete.

By Matt Waterson (NEWS CONSORTIUM)

Despite the continuing decline of the price of oil, Saudi Arabia has actually increased its oil production in an attempt to gain a victory in the oil war against shale drillers in the United States. LOS ANGELES, CA (Catholic Online) - The Middle Eastern oil ... continue reading


Talk about a killer app! Apple posts largest profit in history of mankind Watch

Image of The iPhone 6, which has helped Apple post the record largest profit ever made by a corporation.

By Matt Waterson (NEWS CONSORTIUM)

Apple has sold 74.5 million iPhones in just the last three months, helping the tech giant's profits soar to $18 billion, up more than 37 percent. LOS ANGELES, CA (Catholic Online) - This is the largest profit ever made by a corporation, edging out the $16.2 billion ... continue reading


ECONOMIC EARTHQUAKE: IBM rumored to lay off 110,000 employees - biggest cull in business history Watch

Image of First reported on the Forbes Web site, IBM scoffed at the news. Representatives said that the reported scale of the job cuts

By Catholic Online (NEWS CONSORTIUM)

There are alarming indications that the largest corporate layoff in history may be near. There are rumors afoot that computer IBM plans to lay off 110,000 employees shortly. As their entire worldwide workforce is estimated at 430,000, this represents a quarter ... continue reading


Living on less than $2 dollars a day: Only 5 percent of global wealth belongs to the poorest 80 percent of the world Watch

Image of Millions of people around the world are living off of less than two dollars a day.

By Abigail James (NEWS CONSORTIUM)

The staggering increasing inequality among the wealthy and poor around the world continues to be a pressing issue. Eighty rich billionaires have as much money as 3.5 billion of the poorest people. LOS ANGELES, CA (Catholic Online) - The wealthy are occuring their ... continue reading


An amazing 2,500 of the world's most prestigious people canvas Davos, Switzerland for this year's World Economic Forum Watch

Image of

By Abigail James (NEWS CONSORTIUM)

Around 1,700 private jets will cover the sky, as the most elite people of the world descend on the annual World Economic Forum in Davos, Switzerland. Throughout the next week, world leaders, wealthy businessmen and even influential pop stars will come together to speak ... continue reading


Do they have your best interests at heart? A shocking 50 PERCENT of the global wealth precariously belongs to only ONE PERCENT of the world's population Watch

Image of Nearly 50 percent of the world's entire riches belong to only one percent of its people.

By Abigail James (NEWS CONSORTIUM)

Davos men, the world's most elite billionaires and politicians, gather at the World Economic Forum to once again attempt to tackle inequality between the rich and poor as the disparity continues to grow. LOS ANGELES, CA (Catholic Online) - Every year the world's ... continue reading


Downturn of low gas prices: Schlumberger to cut 9,000 jobs due to decline at pump prices Watch

Image of The precipitous fall of $1.8 billion came in a series of one-time charges related to the steep fall in commodity prices.

By Catholic Online (NEWS CONSORTIUM)

There is a downside to the plunging prices at the gas pump: Americans will be losing jobs as companies struggle to make up the difference in falling revenue. Case in point: Schlumberger is cutting 9,000 jobs due to low oil prices. Other petroleum companies are ... continue reading


Improved economy? Study says labor force participation at 36-Year Low Watch

Image of The labor force participation rate is defined as the percentage of the civilian non-institutional population who either had a job or was actively seeking one during the month.

By Catholic Online (NEWS CONSORTIUM)

Gas prices may be cheaper, consumer confidence may be higher - but that does not take away from the brutal fact that many Americans remain jobless. A record 92,898,000 Americans 16 and older did not participate in the labor force in December, as the labor force ... continue reading


The Rise and Fall of the World's Poorest Nations Watch

Image of Leaving list of LDCs entials that of productive capacity development, structural transformation resilience building and sustainable improvement in human and social capital.

By Thalif Deen, Inter Press Service

The world's 48 Least Developed Countries (LDCs) - a special category of developing nations created by the General Assembly in 1971 but refused recognition by the World Bank - have long been described as "poorest of the poor" in need of special international ... continue reading


Is pot the future boom business? The founder of Pay Pal thinks so Watch

Image of The co-founder and former CEO of PayPal, Peter Thiel is investing multiple millions of dollars into Privateer Holdings, a Seattle-based marijuana growing, production, distribution and information company.

By Matt Waterson (NEWS CONSORTIUM)

Founders Fund, a $2 billion dollar, San Francisco-based venture capitalist firm ran by the co-founder and former CEO of PayPal is moving in a new investment direction, turning towards pastures a little greener than former tech and Silicon Valley ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Hebrews 11:1-2, 8-19
1 Only faith can guarantee the blessings that we hope ... Read More

Psalm, Luke 1:69-70, 71-72, 73-75
69 and he has established for us a saving power in ... Read More

Gospel, Mark 4:35-41
35 With the coming of evening that same day, he said ... Read More

Saint of the Day

Saint of the Day for January 31st, 2015 Image

St. John Bosco
January 31: What do dreams have to with prayer? Aren't they just random ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter