When the governments of the world undervalue manufacturing’s impact on Gross Domestic Product (GDP), the result can be detrimental to the economy. The results can include taxes and laws being put in place by governments without understanding the true impact on manufacturing. A recent study by Manufacturing Alliance for Productivity and Innovation (MAPI) suggests the US has been significantly undervaluing manufacturing’s contribution to GDP. If you are reading this post outside the US then I hope the topic at least has some relevance to you in your own country.
Why should you care about the macroeconomics going on around you?
Well, we all know our business of manufacturing is cyclic, and those cycles are sometimes predicted (and often measured) by large scale trends. These are known as economic indicators. Having a hint of what might be coming is always helpful in making our best business decisions. I don’t pretend to be an expert economist, but in my experience our customers generally see their business rise and fall with key economic indicators.