We do make stuff in this country.
If you are like me these days you get awfully tired of the daily blasting the good old USA takes from the politicians and the talking heads. Over the years I have on many occasions told my kids that there are two types of people in the world.... problem identifiers or problem solvers. And that there are to many of the first and not enough of the second.
The identifiers will have you believe that all of our problems center on the elimination of our manufacturing base (i.e. "we don't make anything here anymore").
Every time I hear this I can't help but think what a load of crap. Historically, Ryan Staffing has gotten about 80% of its business from a manufacturing client base. While the types of companies in the base have changed over the years it doesn't take Einstein to drive around NE Ohio to see all the great companies pounding out a product. Now for the facts:
Manufacturing Output as percent of world manufacturing output, 2007
United States 20%
China 12%
Russia 4%
Brazil 2%
India 2%
Indonesia 1%
South Africa 1%
Rest of World 58%
According to John Engler, President of the National Association of Manufactures, "The USA manufacturing output in 2007 set an all time record". He goes on to point out that the USA produces about one-fourth of the worlds industrial output which is twice as much as fourth place China. (Japan and the European Union rank third and second.)
What is interesting about this debate is that it is true we have lost three million manufacturing jobs since 2000 but productivity has grown so fast that today 75 workers produce what it took 100 workers to produce back then.
The truth is that our percentage of global manufacturing is the same today as it was 20 years ago (or longer). Our manufacturing output since 2000 is up 19%.
One last thing before you get ready to buy your plane ticket to China remember this:
GDP per Capita (good produced / population)
United States $45,790
China $ 3,315
The countries with the smallest manufacturing base have the highest per capita GDP. . . go figure.
Now don't you feel better?
Bits and Pieces
Lie detectors? You may not realize it (unless you look at all those mandated posters hanging on your bulletin boards) that there is a law called the Federal Employee Polygraph Protection Act of 1988.
Basically, the law protects employees from being forced to take a polygraph test for a variety of reasons. It does permit employers to request that an employee submit to a polygraph if it can establish it is connected to an ongoing investigation involving economic loss.
As always seek counsel before using a polygraph test.
Did you know. . . If one of your employees commits a felony that you know about you have a legal obligation to report it? Failing to do so is a fourth degree misdemeanor under Ohio Law.
Federal Minimum Wage Rises
This doesn't impact us Ohio employers much because our state minimum wage of $7.30/hr still is higher than the new Federal rate of $7.25/hr. But if your receipts are less than $267,000 you do have to pay the $7.25/hr.
When It Goes Up Things Will Improve
The demand for temporary and contract employees remained unchanged for June. The current index is at 72 which is 27 points lower than a year ago.
Historically, increasing demand for temps is a bullish sign for the economy as a whole. For more on this visit: americanstaffing.net
They Said It Best
"Only two things are infinite, the Universe and Human Stupidity, and I 'm not sure about the former" -Albert Einstein-
"I find that the harder I work, the more luck I seem to have" -Thomas Jefferson-
Getting Better?
The result from last months survey question give some hope. Is your business getting better? Definitely yes-- 43%, Definitely no-- 31%, Bottomed out but not going up-- 26%
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