MAGAnomics – Big Manufacturing Jump Amid Mid-Atlantic Region Report…

The potential for supply chain disruption as a result of China dealing with the Coronavirus, and almost a complete shutdown of their manufacturing economy, is looming heavy upon Wall Street multinationals invested in China.

However, tangentially related, as a result of USMCA we are now seeing signs of shifted investment into North America and increases in forecasts for U.S. manufacturing.

(Via CNBC) […] Early in the week, New York’s Empire State Manufacturing Survey for general business conditions posted a reading of 12.9, up 8 points from January and its best level since May. New orders surged to 22.1, the highest since September 2017, and shipments rose to 18.9, the best since November 2018.

On Thursday, the Philadelphia survey exploded 20 points higher to 36.7, the highest since February 2017. New orders hit their highest since May 2018. (more)

The Philadelphia FED tracks factory orders in eastern Pennsylvania, Southern New Jersey, and Delaware.  New orders in that region soared far higher than all expectations, reflecting a strong consumer-driven economy with ongoing purchases of durable goods.

We have only touched the initial outer edges of impact from the USMCA and there’s no doubt we will see additional shifts in investment and growth in the North American production economy as a result of the new U.S, Mexico and Canada agreement.

One small example is Microsoft:

Microsoft is investing in new data centers within Mexico which indicates they are anticipating to fill a need for clients who need expanded digital technology.  CEO Nadella said the investment is “focused on expanding access to digital technology for people and organizations across the country”.  Think of it like digital service infrastructure.

In the same way a construction firm would position itself for anticipated utility service needs and housing development within a community, Microsoft is positioning for needs in the digital and technology space.  As much as companies need access to electricity, water, raw materials and a labor pool, they also need to be able to link into data networks.

These are the very first steps within a resurgence of north American investment. As we have noted over the past several years the benefits of producing products in Southeast Asia are much less than they were ten to twenty years ago.

President Trump’s focus on ‘America First’ incentives has lowered overall energy costs, decreased the cost of doing business, cut regulatory hurdles and completely reset the total cost of production.  The U.S. is now competitive, and without transportation costs the total cost of durable good manufacturing in the U.S. is now the best bet.

Secure jobs, higher wages, low taxes and consumer confidence creates a domestic cycle of economic growth inside the U.S.   A big jump in building permits and housing starts is an example of that strength.

This entry was posted in Big Government, Big Stupid Government, Donald Trump, Economy, Election 2020, energy, media bias, Mexico, NAFTA, President Trump, Uncategorized, US dept of agriculture, US Treasury, USA, USMCA. Bookmark the permalink.

83 Responses to MAGAnomics – Big Manufacturing Jump Amid Mid-Atlantic Region Report…

  1. Harvey Lipschitz says:

    Housing starts far exceeded estimates in December. Housing requires a lot of manufactured products.

    Liked by 16 people

  2. Zabadak says:

    Waiting for Obama to take credit for this, too.

    Liked by 15 people

  3. kleen says:

    Thank You President Trump!

    Liked by 18 people

  4. kleen says:

    One of the many reasons I will be voting for Trump again.

    Promises kept.

    Liked by 16 people

  5. Maga Truth Seeker says:

    Abra Cadabra!

    ::Obama:: He didn’t build that.

    Liked by 5 people

  6. No more, Mr President I can’t STAND all this WINNING!!!!

    Liked by 8 people

  7. trapper says:

    He was right to not prioritize completion of a continuous border wall. With a new, manufacturing based, real economy in Mexico, why leave? Why swim the river to pick lettuce or mow lawns in America when you could be a machinist in a new factory in Mexico? And with Mexico now defending it’s southern border, the folks passing through will decrease. Sometimes, put the right conditions in place, and some problems take care of themselves.

    Liked by 8 people

    • The problem of human trafficking won’t really begin or end with “a wall.” Most of what Trump has done to attack the problem is to attack the root sources of the human trafficking itself. (People were arriving in northern Mexico who came from Africa …) That sort of thing should be counted as “a crime against humanity,” but no.

      Liked by 7 people

    • Sentient says:

      The wall is necessary, although not sufficient.

      Liked by 10 people

      • trapper says:

        Not saying that it is not necessary, just that when doing triage on a badly damaged US economy, it wasn’t the highest priority. Getting out of TPP, replacing NAFTA, going head on against China, eliminating ISIS, and neutralizing the Nork threats were first. When I voted for him I thought the wall was on the first tier of priorities. With the benefit of hindsight I no longer do, and am more inclined to trust PDJT’s judgment on the rest. He’s on it, on all of it, so I fret much less over any of it.

        Liked by 2 people

        • Dwayne Diesel says:

          Great commentary trapper. I agree. My wife being the liberal she is always throws at me- Trump said Mexico will be paying for the wall but they are not…hahahahahahaha….

          I no longer play nice with liberals, including my wife.

          I said Mexico is paying for the wall. Maybe not directly but have you heard of USMCA? Have you heard about the number of Mexican troops on our border? On the Mexican southern border? The Mexicans now housing the illegals? They are paying for it. USMCA has items tied to the border. Just because they are not on tv giving the US a big novelty check doesn’t mean they are not paying for it. I then throw in a jab about how she spent 6 years in college getting her MA but left school without the ability to conduct deep thinking or basic analysis of what has transpired. Then again, she never goes to source docs or anything other than the Today Show.

          Like

      • Ray Runge says:

        So true. Mexican immigrants to Texas are a net benefit to Texas. Many small businessmen in metro Houston Texas are of Mexican descent.

        Given the requirement that they become USA citizens, we are blessed by the immigrants.

        Like

    • AnotherMDConvservative says:

      Microsoft’s investment can get things in the right direction for sure but an educated Mexican labor force is required to fill jobs for machinists and the like. Hopefully that will happen.

      Liked by 3 people

    • El Torito says:

      Because library states hand them everything. Thats why.

      Liked by 1 person

    • dbobway says:

      Trapper, Sometimes you commenters, simple common sense to what our President is doing.

      ” Sometimes, put the right conditions in place, and some problems take care of themselves.”

      I like the time I heard PDJT that, Obama said Trump would go to war with N.Korea.
      The President said,”Did anybody call them?”
      The Presidents plan for a 2 state solution with Israel and the Palestinians, is plain simple.
      “We’re going to set up your land, with borders and infra-structure and jobs for the people of Palestine.”
      Take it or leave it.

      Liked by 1 person

  8. StanH says:

    This is what really matters. Incredible.

    Liked by 3 people

  9. Will someone please explain to me why anyone thought that sourcing from a country half-a-planet away from here was a spectacular idea in the first place? You could be stuck “waiting for your ship to come in” while a nimble domestic manufacturer takes your business away permanently. This is America, after all …

    Liked by 17 people

  10. Steve Boggs says:

    Had an employee from S. Africa once. He told me the greatest economic period he could remember was during the apartheid boycott, when the country had to learn to do for itself. It made sense to me (not in a simplistic economic sense, but given the corruption of nations).

    None of this surprises me.

    Liked by 4 people

  11. youme says:

    Liked by 2 people

  12. Dutchman says:

    Have seen several articles, (sorry can’t link) saying that because we can’t trust CCP #’s from China, they were looking at pollution in China (Data from NASA) and Coal imports to China, since coal is how they generate most of their power.

    According to those metrics, China is basically shutting down. How much of this is BECAUSE of Coronavirus, as opposed to would be happening ANYWAY, and is simply being ‘masked’ by, or explained away by, the virus is anybodies guess.

    Imagine the movement of manufacturing OUT of the U.S.
    Then, add in the growth of manufacturing since the 70’s, and almost all going to China.

    THEN, imagine all of that “great sucking sound” happening in reverse, to China.
    NOT over 30 years, but in a matter of 2-5 years.

    And then, imagine it happening NOT in a country of 350 million, but instead 1.5 Billion!

    Something much worse than the “Great Depression” of the 30’s.

    Sure sucks to be them! PDJT’s good friend Xi is in one heck of a pickle!

    Liked by 7 people

  13. TreeClimber says:

    Meanwhile, the company my husband works for is talking about 36 cent raises for those in his position, and everywhere opening up jobs is getting snapped up at an alarming rate. *sigh* Living in a blue area has definite drawbacks.

    Liked by 4 people

    • Ad rem says:

      Tell em… “Baby needs a new pair of shoes.”

      Liked by 3 people

      • TreeClimber says:

        They don’t care. The company’s average for my husband’s position, according to Glassdoor, is $20-21 an hour, or alternatively $62k-67k yearly. He’s getting $12.44 an hour. He’s been trying to get a raise since he started, they just don’t care. They also cannot keep people to save their lives – or Boeing contract… idiots.

        If they had any sense they’d pay enough to their employees to keep enough people that they wouldn’t lose their contract, but they’re one infraction/quittal away from losing it. They’re hemorrhaging employees, can’t keep anybody new more than a couple of weeks. And they’re about to lose every single person – there’s talk of moving people around on shifts (ten-hour shifts, mind,) so the people formerly on second shift, who go in at 1:30, would be going in at 4 AM, and the people who are using to working in the morning wouldn’t get off until midnight… everyone has already quietly agreed that if the new boss man tries to implement that, they’re all quitting en masse.

        Liked by 3 people

        • I suspect that a very big part of this is exactly how we train these accountants and financial executives: “my company makes widgets,” and “we import raw materials and ship products,” and “there is no other company in our world except our company.”

          No one ever uses words from the engineering world, like “redundancy” and “fault tolerance.” No one has the apocryphal wisdom of Henry Ford to realize that you need to pay your workers enough that they can afford to buy the cars they make. Their little model of the world literally does not extend beyond “debits and credits.” If the actions recommended by their spreadsheets have human consequences, they cannot see it. Therefore they fail to properly consider their actual implications.

          Liked by 5 people

        • Tree climber I’m so sorry for you and your husband.

          Liked by 5 people

        • Super Elite says:

          Exactly! Quit them and find a better situation.

          Liked by 2 people

        • GB Bari says:

          That sounds kinda weird.
          What state?
          I’m in Maryland with middling taxes but fast food workers are making anywhere from $11 to $15 per hour. I’d say your hubby needs to go job hunting since his current employer appears to be exploiting their employees.

          Like

        • Sure hope your husband’s job doesn’t depend on Boeing’s sales of commercial aircraft.

          What airline will be buying aircraft during the COVID-19 epidemic, when it SHUTS DOWN international flights then routes then travel to and from infected countries.

          That’s before considering the same impact on domestic travel in heavily-infected countries … and in lightly-infected countries due to the FEAR FACTOR.

          Idled aircraft create a massive oversupply of capacity that can go to serve any recovering demand … for YEARS.

          Just my personal perspective, but I’m seeing nothing to dispel it. Very sad.

          Like

        • Dwayne Diesel says:

          Tree, I live in CT and see the same here. Coutnry’s economy booming. Still growing yet here in CT nothing. Why? Because of liberal state politicians and our socialist Gov. Lamont (previously Malloy). CT’s taxes are so high and the business environment so bad businesses can’t ride the good economy wave. It’s why we have more working people leaving the state than moving here. I can’t wait for my kids to be done with HS (two years to go). My wife and I are out of here….back to the South we go.

          Like

          • TreeClimber says:

            It’s not even our state that’s the problem, that’s what makes me sick. It’s the county we’re in and the surrounding ones. We’re in one of the handful of blue counties in our state! It’s been an unemployed slum zone for so long that all the new jobs are being taken even faster than they’re produced, and the Trump economy is only just starting to impact the area in a noticeable manner.

            All that being said, we’re definitely better off than three years ago. I think, if/when he gets four more years, we’ll probably be all set – it’s getting to those four more years that we’re going to have to grit our teeth through.

            Like

        • dbobway says:

          Please don’t offense, but in America we have a choice,

          Like

  14. 94corvette says:

    Think about the percentage of pharmaceuticals we import from China. . . from China? It boggles the mind how we could allow ourselves to offshore one of the most crucial industries to our survival.

    Liked by 5 people

    • Dutchman says:

      For the MOST part, we don’t get our PHARMACUETICALS from China.

      We DO get a lot of the RAW ingredients, chemicals and precursors from China.

      And we CAN get them elsewhere, or make ourselves. Like everything else, China just ‘dumped’the chemicals at such low prices, that they drove the domestic production out of the market.

      But, look how quickly U.S. Steel and Aluminum production ramped up, once the dumping was stopped.

      Same can happen with chemicals.

      But yeah, it was beyond stupid for our corrupt leaders to allow this to go on for so long.

      Liked by 6 people

      • FrankieZee says:

        And if it ever got to the point that we couldn’t get the drugs, Trump would have companies opening up in the USA by next week.

        Liked by 1 person

        • Dutchman says:

          The article says they don’t really know how many MEDICINES are actually made in China.
          Precursors, or ingredients IS a serious issue.
          It talks about Heparin, in 50 gallon drums. No patient is getting a 50 gallon dose, which was my point.

          Thats not to say that contaminated ingredients isn’t a BIG problem.
          Losartan was recently recalled, because ONE OF THE INGREDIENTS, supplied by CHINA, was contaminated with a carcinogen.

          And yes, vitamins and supplements, LOTS,of them either come from China, or have ingedients sourced from China.
          And, as the article points out, China dumped, to drive local companies out of business.

          Its bad, and NEEDS to be addressed. Presumably PDJT has someone on it.

          Liked by 3 people

      • Dwayne Diesel says:

        Dutch those kickbacks the politicians get go a long way. The kick backs are so good they have Bloomberg running for President.

        Like

        • Dutchman says:

          Boomberg is a shill for China, blatantly obvious. $, OUR money, goes out, and $ goes back in. Thats the ‘tide’in the swamp.

          PDJT is threatening to disrupt that system, in fundamental ways. Bloomberg is offering to preserve/restore that system.

          How Democrat voters can’t see that, is difficult to comprehend.

          I really THINK only about 30% of the electorate will vote D in Nov.,….but I have real difficulty understanding the mindset of people like my sister, who is still, so far as I know, a D.

          Insanity is truly the only explanation.
          So, we’ll see what happens.

          I seriously doubt even a declass of all the documents on Sundances wish list, will have any effect on these TDS people.

          “People in leadership positions, in all 3 branches of Government, conspired to overturn an election, and remove a duly elected POTUS!”

          TDS afflicted person;”You mean Trump? SO WHAT, and Good for them! It was the RIGHT thing to do, so don’t CARE,that they broke the law, violated the Constitution, etc.!
          The ends justify the means, and they had good intentions!”

          Sad,…

          Liked by 1 person

  15. Deplorable_Infidel says:

    “These are the very first steps within a resurgence of north American investment. As we have noted over the past several years the benefits of producing products in Southeast Asia are much less than they were ten to twenty years ago.”

    As sundance has so aptly described over the years, the reason that those jobs and products were able to be outsourced in the first place was that most of the elected representatives in Washington acquiesced to turning control of such things to the Chamber of Commerce.

    The CoC wrote legislation and policy to enable the selling out of America. Joe Sixpack in flyover country knew in his heart that NAFTA, etc. was not going to benefit us. To our disbelief we watched the cancer of outsourcing rot our manufacturing base and coin new terms for the devastation (rust belt).

    Now that we have a President that truly cares for ALL U.S. citizens, we can clearly see the uniparty fraud perpetrated on us by the globalist oligarchs.

    Liked by 6 people

  16. sundance says:

    Liked by 7 people

    • Dwayne Diesel says:

      Except for one liberal business owner I know. She owns two restaurants. She loves the economy but says it’s not cuz of Trump it’s cuz of Obama. So she craps on Trump and will vote for Bernie (or Buttigieg- she’s on the fence).

      I secretly hope she fails and goes under so I can ask her how the Trump boomerang feels.

      Like

  17. mg says:

    I would rather rebuild Mexico (catholics)
    than giving those commies a dime

    Liked by 3 people

  18. trumpmemesandreams says:

    Purely Anecdotal:
    The Department of Commerce has a pretty decent presence of CES every year under the auspices of the International Trade Administration (ITA) via the Trade Event Partnership Program (TEPP).

    As a small US business owner who displays at CES and elsewhere I can confirm there have been good efforts to shift trade/sourcing to North America (and/or Europe) and out of Asia.

    This push is real, and a good thing.

    Liked by 2 people

  19. Dogman says:

    I bet Apple wishes they had built that factory with FoxConn in the USA

    Liked by 4 people

  20. jackalix says:

    Microsoft is investing in new data centers within Mexico which indicates they are anticipating to fill a need for clients who need expanded digital technology. CEO Nadella said the investment is “focused on expanding access to digital technology for people and organizations across the country”. Think of it like digital service infrastructure.

    That’s interesting USMCA to raise all boats/wages one of the issues touted in the beginning about the new trade deal.hopefully in the long may it helf fight the narco traffic? Time will tell.

    Liked by 1 person

  21. DiogeneseVindicated says:

    Three, maybe five years from now when our economic transformation is complete we will begin to grasp the size and scale of what the globalists did to our country over the last 30 years. I hope our national conscious will memorialize and preserve that awareness for generations to come.

    Liked by 1 person

  22. davidberetta says:

    EVERYWHERE President Donald Trump visits across the United States of America he is met with SOLD OUT crowds and 10’s of Thousands of Patriots excitingly waiting outside the venue(s). EVERY TIME and EVERYWHERE he visits.

    Along with Hollywood/Media propaganda – Voter/Voting Fraud is all the Democrat Party has to “Run” on.

    Well…throwing fits and trash talking YOU and President Trump too.

    There is ZERO legitimate reason the Democrat Party should get…say…20% of the vote in this Nation. With that said – 20% includes *ignorant citizenry, *illegal aliens and *non existent people (half our states do NOT care/varifies who votes…sadly).

    DNC/MSM/Hollywood Propaganda AND their vote-fraud schemes are truly INTERFERING IN OUR ELECTIONS….

    Russia…..not so much.

    Liked by 5 people

  23. Renate says:

    I’m waiting for the price of food to come down.

    Liked by 1 person

  24. john says:

    Mexisoft. Too bad they missed the target by a couple thousand miles.

    Like

  25. Richie says:

    Imagine that…Mexican nationals finding work in Mexico? Must Impeach

    Liked by 2 people

  26. Spryte says:

    Just a couple of thoughts: the cartels will have to make some changes to their actions, hopefully.

    Re: China’s products-perhaps when things are Made in the USA the packaging won’t be better than the item inside. How often I buy things and once it’s out of the box it has a life cycle of 3 seconds. Made in China is too frequently a big rip-off.

    Liked by 1 person

  27. John-Y128 says:

    Great news Sundance but I wanna here about Russian, Russia, Russia!

    Liked by 1 person

  28. jeans2nd says:

    These factory orders were expected. Recall the predictions made last December. – made right here at CTH. Great forecasting!

    As for Microsoft – MS recently received that big DOD cloud contract, the one over which Bezos is suing.
    Recall that EO signed early on by POTUS, stating gubmint purchases had to be American-made.
    MS needs their cloud space to be in the U.S. for the DOD cloud, so current and future business will be moved to Mexico, where MS can import all their Indian IT workers without running afoul of U.S. immigration quotas.

    Gee, how will AMLO react to all the new MS and associated businesses locating in Mexico, not to mention the influx of foreigners?

    We indeed live in interesting times.

    Like

  29. railer says:

    Love all the great economic news, but as this is a real site and our host deals in nothing but data, we must highlight any potential data sets that are worrisome, like the recent January PPI.

    https://www.bls.gov/news.release/ppi.nr0.htm

    PPI rose 0.5% in January, a good sized jump. It may be an anomaly, but worth noting. The rise appears to be concentrated in services and not goods. With all this loose money flying around, some of us who have lived through massive inflation are anxious about these sorts of numbers. Better to get on top of them early if you can.

    I can see services PPI rising much like our host describes Microsoft’s business expanding. They may be related and understood, just need close monitoring.

    Like

  30. Harlan says:

    One of the lamestream “media’s” counter-arguments to the Trump economy is to drag out individuals to complain that they themselves are not benefiting.

    The economy wasn’t destroyed overnight. And it will not return to it’s full glory until more of those 60,000 factories that our politicians sent abroad return. And while Trump is not a miracle worker, he is working on it, which no president in the last 30 years has bothered to do.

    But only four more years will not be enough. There needs to be a strong Republican candidate waiting in the wings who will carry on Trump’s America First agenda in ’24. Either that or a groundswell of approval to give Trump a third term to make up for the unrelenting resistance to his first.

    Like

  31. 6x47 says:

    It’s just amazing to me how Obama cleverly designed his economic policies to produce such incredible robust job growth, wage increases, and economic expansion 3 years after he leaves office and a new administration comes in and completely eradicates the policy he put in place.

    Like

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