Editors note: goods producing businesses in the US are all changing their supply chains because of the presidents trade strategy.
A new survey of business economists shows that while a majority of companies have not made any changes in response to trade concerns, goods-producing businesses have had to make significant sourcing and supply-chain adjustments.
[April 30, 2019 | Inside US Trade]
“In response to trade concerns, panelists from goods-producers all report their firms had made changes in sourcing, supply chains or other practices,” according to a new National Association for Business Economics' survey. “In contrast, about three out of four respondents in other sectors had not made any changes.”
“A majority of panelists (67%) reports no changes to hiring or investments in reaction to actual or potential trade policy,” it adds. “Only respondents from goods-producing firms indicate there have been adjustments. The most common action taken by goods-producing firms are changes in sourcing/supply chain shifts (cited by 54% of goods-producers). Other notable adjustments by goods-producers are delayed investments (31%), front-loaded inventory (23%), and delayed hiring (15%).”
Read the entire article here.