In This Episode
Chad is the Chief Economist for the National Association of Manufacturers. In this episode, Brian and Chad discuss the pandemic, its effect on the U.S. and global economies, and what we can expect to see later this year and in 2021.
Chad’s Insights on the Economy, Manufacturing, and COVID-19:
- The abrupt stoppage of activity in the US hit manufacturing hard. We saw manufacturing production fall about 18.5% from February to April.
- A third of our members are positive about their company’s outlook. The good news is that we are over the worst of it. The rate of decline has slowed down.
- I think we will have an unemployment rate of around 10% by year’s end. To put that number in perspective, 10% was the worst number we had in the great recession. I believe this will slow down the path to growth.
- This downturn hit the service sector harder than other sectors. It hit lower income Americans, minorities, disadvantaged groups, and women harder. Contrast that with the great recession, which typically hit more male dominated sectors like manufacturing and construction.
- NAM is asking for investments in domestic manufacturing to help American manufacturing stay competitive, whether it is tax credits or incentives for a better workforce or innovation.