We know the next recession is coming in the next 2-3 years. Is manufacturing and factory jobs back to stability in America?
no industry is "safe" in a recession... this seems like a silly flawed question... the industries that have less impact, not safe, are those that cater to the high-end market who have disposable income even in recession... but even they were harmed as wealthy people were actually afraid to be excessively wealthy because of how they were being viewed and attacked by the general population and the media... so if you're looking for safety in a recession, the goal is to cater to the needs of wealthy people, in a business that low and middle class can't afford, thereby shielding you the most from any recession... at least until the public backlash targets them and they cut back on use of your goods or service because they don't want to seem mean... but a factory, thats usually the first to go BEFORE the recession hits the other industries, its like trucking, the canary in the coalmine... once you see trucking dip, it means factories dipped, and that ripples through the rest of the economy and amplifies itself along the way... P.S. while the story below is a boring read... check out the chart showing diamond prices, even through the last recession, you see they slightly went up but have remained steady for almost the past 20 years through several recessions and stock market bursts... it pays to cater to the wealthy... who always have money to keep you in business... http://www.wsj.com/articles/SB10001424052748704337004575059723597630174
From what I have read, manufacturing is slowing globally for cars outside the US. That combined with the changing design requirements would make me think maybe with an OEM with a good track record with a manufacturer who is on the leading edge of the parts. MOst cars seem to have problems related to their computers and electronics/sensors though more so than say their water pumps, so I would tread lightly before casting my fortunes in that particular sector.
I guess that depends on what you mean by out of style. Furniture and textiles, for instance, depend on style but people still need them regularly and we have lost those industries. It is the end result of people wanting more and therefore want to spend less on the things they do purchase so they can stretch their dollars. There are often tensions between people's wants.
Food is recession-proof for obvious reasons. Any industry that caters to an addiction thrives in a recessionary environment -- particularly booze, tobacco, candy. Walmart is likely to be a major beneficiary of goods substitution during a recession. Collection agencies are good recession hedges. Oil is nearly impervious to economic shocks, for obvious reasons.
I'd say, for the most part, NOPE! Though some manufacturing/factory jobs are relatively safe, more will not be. Since most manufacturing/factories produce goods (or bits of goods) that are sold to the public, those sales will be down. Thus......unsafe jobs! To those who want to argue against what I just said......45 YEARS in factories/retail/managing says your high education is wrong. If you wanna bet me, why not! Straight odds......
But you cannot just invest in "Food". It depends on which companies. A lot of food processors manufacture across the spectrum, so they may be able to continue to fill orders for cheaper foods for grocery store name brands during a recession to keep the lights on but not be able to move much of its own premium branded products. A relative works for such a place and the recession very much hit their company's orders hard. Filling contracts for store brands and off brands using lesser ingredients kept the doors open, but not much more for the first couple years after the great recession. Their own labeled goods using higher quality ingredients are always under pressure because the cost of those ingredients are so high but the willingness of consumers to pay accordingly higher prices is limited. For instance, quality pesto sauce is really expensive to make because of the cost of the premium olive oil and pine nuts, but consumers are only willing to pay so much for it before they decide they will just grab a can of Kroger spaghetti sauce for $1.29 instead.
That's what keeps me and my little manufacturing operation in business. Of course there are no workers as everything is done by machines under computer control. I have this philosophy, one of my economic laws is that people are willing to spend more on things that they don't need and less on those that they do. I make things no one needs thus my profit margin is high.
you know the answer niche markets are small but profitable mass markets are enormous but with thin margins (except Apple) there is a reason that mass-market products tend to be built overseas. Sure you might see some "Assembled in the USA" labels but they are made of foreign made parts. We like our cheap and plentiful stuff and USA regulations and costs don't support that.
American manufacturing jobs are being attacked on 2 fronts. First from offshoring in which greedy corporate entities are manufacturing in third world countries and selling the finished goods in first world countries at huge profits. The second is the advances in automation and robotics which are quickly making human labor obsolete. Nothing short of world war in which we go to war with China will change the 1st, and nothing at all will stop the second. We are facing an over populated planet in which the value of human labor is quickly falling and will soon be obsolete. The only real question is what the .01% will decide to do with all these unneeded humans once they cross the line from being assets to liabilities......... I am not optimistic.
