Economy Shaping Up Or Shipping Out? (Part 1 of 2)
Is this really it? The long awaited rebound…?
Having visited a few of this year’s round of furniture shows in the U.S. (as Universal Cargo Management takes care of international shipping for many companies in the furniture business), a common sentiment has emerged. Hopefulness. “We don’t know how long it will hold, but…”
While exhibiters report that the number of orders are up at the Atlanta, Dallas, New York, and Las Vegas shows, according to our informal polling, we still ask, “What does it really mean?” The economic turnaround so many, not just importers and exporters, have been hoping for? Or is it a brief respite from painfully slow growth experienced by most in the industry over the last couple of years?
Some of the numbers economists like to review when evaluating economic strength are also moving in a favorable direction—or so it seems. Joblessness seems to be dropping, the stock market is up, and the media is once again promoting these positive developments.
Yet it is important to note that some of this happened as a result of the European debt crisis. Investors who abandoned the U.S. shores and dollar in recent years found it more favorable to return to the green back and the NYSE litter of stocks than to ride the waves of the Greek lead EU debt debacle. The multiplied trillions (some estimate up to 15 trillion) pumped into the U.S. and world economy via the U.S. Fed and the saturation of newly printed money has to deliver a buoyant effect at some point. Many decried the last 18 months of inflation experienced by the rest of the world, and in the U.S. if you count fuel and food, is also a result of the printing press strategy. So, finally the FED’s printing presses seemed to have engineered the administration’s desired effect: borrow, spend, and print your way to prosperity (with a little help from the EU).
Also the business community, including U.S. manufacturing, is beginning to feel more optimistic. Ford, Caterpillar, and others are beginning to spend some of their stashed cash on expansion—yes, even hiring. More Americans Borrowed money last month than the month before, signaling an increase in consumer based optimism. Few note that a large measure of that new borrowing was for education and training. But let’s trust that this will broaden and strengthen the skills of those expanding their horizons so they will provide more at work, get paid more, and spend more. This new consumer willingness to borrow, then spend that newly borrowed money, may be the basis on which things move forward—but how far?
Does this mean it’s time for the champagne, party hats, and ticker tape parades? Conventional wisdom for stock market trading is to sell into a rising market. All indications are that we are experiencing a rise in our market economy. If you are one who supplies retailers or are a retailer yourself, especially furniture, it may be time to ramp up fast and sell fast. This rise may not last that long.
Why? More Economy Shaping Up Or Shipping Out Part 2….
Dave Stover, who wrote this blog, is an account executive for Universal Cargo Management. He or any of Universal Cargo Management’s great sales team would be happy to give you a fast and free freight rate quote and help you import or export whether by ocean freight or air cargo.