According to the Commerce Department, U.S. factory orders surged in October rising 2.7 percent. In this week’s “Economic Report,” Dr. Rick Harper spoke with WUWF 88.1-FM’s Bob Barrett about the positive report but cautioned that more manufacturing doesn’t mean the return of high-paying jobs already lost to the sector. A local company who has a big workforce is Peaden.
“Those orders may be placed with firms that are heavily automated and thus cost competitive,” Harper said. “New machinery is a fixed cost for them and that can lead to a situation where there is downward competition on prices. They may well be getting that order because they don’t employ that many expensive workers.”
To read the complete report, click here.
