On Monday, The Conservative Treehouse posted an article about some important economic data that is not being widely reported.
The article reports:
What we can take away from the Institute for Supply Management (ISM) index on manufacturing [Data Here]: overall, the U.S. manufacturing sector is continuing to expand significantly. The current index of 55.6 percent in July is 2.3 percentage points above the June figure and the highest reading since May 2022 (55.9 percent), when we were trying to recover from the COVID-19 shutdowns and supply chain problems.
…Overall, companies wanting to make products in the United States are expanding the manufacturing sector. However, they are running into a problem when trying to source the component goods and/or raw materials. The resource goods they need are constantly in a status of flux and the prices are unstable.
For large companies their supply chain management can deal with the short inventory issue through various sourcing networks using multiple suppliers. However, for smaller companies this is frustrating.
The manufacturing system is a network of complex suppliers who make component materials needed for the core product. In order to get really successful, the smaller manufacturing component goods need to start up inside the USA just like the larger companies who are producing a finished product.
This is why even during a manufacturing surge we end up importing a lot of goods on the front end of the transition. Absent a domestic supplier, industrial component products are heavily imported in order to manufacture the finished durable good.
It takes time, well, technically its never been tried – so, no one is sure, but it takes time for all of the component manufacturing to establish inside the USA in order to feed the component parts to the various manufacturers who depend on the sub-sourcing. This is the period we are in at the moment, and prices are fluctuating as people try to get their arms around costs here and abroad.
When the free market is allowed to be free, it creates growth and prosperity. Putting a businessman in the White House is what was needed to start moving America back to the free market instead of crony capitalism. Think carefully when you vote in November. Your economic future depends on it.