What Manufacturing Profits Don't Tell Us: A Response to Perry
Michael Mandel submits:Mark Perry, who I recently had the pleasure of meeting and who seems like a nice guy, replies to my manufacturing revival post by focusing on profits. He writes that … real manufacturing profits have completely recovered from the recession, and reached an all-time high in the fourth quarter of last year He then goes on to conclude: In the end, it's profitability that's the most important gauge for the health of a company or industry, not the amount of shipments, output, or employment levels With all due respect, Mark misses the point. First, the measure of profits that he is using includes the profits from foreign subsidiaries of U.S. companies, so his measure of profits could be going up because factories in other countries are expanding, By comparison, I am looking at the shipments by factories in the U.S. I think my scope better fits what people mean byComplete Story »
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