Industrial Stocks & Materials Stocks
Many sectors of the economy are feeling the pressure of the fluctuating global economy and one such sector that are feeling the heat is the Industrial sector. The good news for all Business Managers is that the industrial sector has been performing strongly in past years and looks set to perform even better in the future. Now, the flip side of this coin is that with all of this prosperity there are also many challenges facing the industrial sector. With the rise of China as a major trading partner along with new Free Trade Agreements and other trade deals that are reducing tariffs and other costs the benefits of doing business within the USA have become more limited. The problem that most Business Managers face is finding the right balance between investment in the USA and a balanced mix of foreign-based production, sales, and service.
Another key point that should be examined closely when looking at the economic recovery of the industrial sector includes the demand side of manufacturing. Now, demand for machineries, tools, and other manufacturing specific equipment has been steadily on the increase for the past several years. As these raw materials continue to be used by many of the largest corporations in the world, the demand will only continue to grow. This has created a very positive side effect for many US businesses but unfortunately the negative side of this equation has also surfaced.
Because so many of the greatest companies and manufacturers of these raw materials stocks are domiciled in the United States these days, it has become increasingly difficult for them to locate adequate funding to conduct business in a competitive environment. In addition, because these same companies rely on the fact that the commodities they produce will always be available in the markets worldwide many of them have outsourced their operations and many of their workers to places like India and China. These factors have combined to significantly reduce the amount of money available to flow through the hands of American Business Managers.