Given the turmoil of 2020, with the pandemic, the tense election cycle and public protests, we are all clamoring for a surer sense of what is to come. The real issue is not whether the economy will be strong, but rather how strong. We’re all cautiously optimistic that things are going to return to some semblance of normal some time In 2021. We may be wearing masks and social distancing for some time to come but the American economy is resilient. We will find a way to adapt and prosper in our new environment.
The big story as far as the economy and financial markets are concerned has not been the election, but rather the early availability of at least two safe vaccines that are more effective than almost any vaccine ever created; and well above what anyone had expected. This signals that the end of COVID, along with its devastating impact on the economy is in sight, and that life should start getting back to normal as early as the middle of 2021.
Manufacturing Rebound Will Be Critical In 2021
The U.S. manufacturing sector has established itself as the backbone of economic stability and renewal amid times of crisis or downturn. As manufacturing is the backbone of our economy, Logistics is the remaining skeletal structure. Both need to be stable for success. It is important that candidates in this election, regardless of political affiliation, understand that a strong economic recovery is reliant on durable manufacturing and logistics industries.
In spite of the business disruptions caused by the COVID-19 pandemic earlier in the year, the future for manufacturing looks bright. According to the National Association of Manufacturers (NAM) third quarter 2020 outlook survey, 66% of manufacturer respondents are positive about their own company’s outlook, expecting sales, employment, production growth rate, wages and more to increase at varying levels over the next year.
Government Must Be Involved
To pull off this unprecedented economic recovery government involvement is critical. Financial assistance, incentives and tax breaks must be part of the solution moving forward. Equally important, in the long haul, is infrastructure revitalization. The pandemic has placed a spotlight on infrastructure and its critical role to keep supplies moving to meet the needs of Americans across the nation. The current condition of U.S. infrastructure, however, has not kept pace with the growing needs and demand. And, the American Society of Civil Engineers released a report card in 2017 of infrastructure in the country and gave the nation a rating of D+. Without adequate investments, the U.S. is on track to lose 5.8 million jobs by 2040.
Investment in a modern infrastructure system has proven ties to job creation and economic stability, demonstrating its importance to both manufacturers and all Americans alike. This needs to be a top priority for the new administration as manufacturers are looking for elected leaders to make it happen. Investment in our infrastructure worked for Roosevelt and helped our country pull out of the great depression. This is an excellent time to commit to rebuilding our infrastructure and providing jobs for the next 20 years.
It will be important to remain lean in terms of your company’s freight spend this year. Why not take advantage of our complimentary freight bill audit. We’ll make sure your operating efficiently. Visit us @ https://www.land-link.com/supply-chain-consultation
Stay Safe Everyone.
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