While predicting Trump’s next tariff targets might be challenging – let alone which firms might end up on a sanctions list outside of trade battles – there are steps that all manufacturers can take to more effectively manage through the volatility.
The tariffs raise the broader question of what manufacturing firms will actually do in terms of their metals spending.
But a weak dollar is not necessarily a good thing for everyone – even manufacturers. Some, like Forbes, suggest there is a direct correlation between “the stock market [dropping] a thousand points [in early February], on the heels of the dollar losing 19% against the euro.”
manufacturers now have the option of purchasing both new and used property which can be fully expensed in the same year. Used equipment in 2018 will qualify for bonus depreciation in an identical manner to new equipment.
Indeed, small business players continue to push for changes to the tax system that will hopefully not only benefit business, but will stimulate growth that will help deal with the growing budget deficit via overall larger revenues. The Administration has put such reform in the center of its strategy as they see it as “trumping” all else in winning the kind of support from Americans and the business community they will need as the 2018 congressional election year approaches.
If you are the worker who is being micromanaged the options are not all that good. You can let the manager do your work and take credit for it if that is what truly makes them happy. It may not be efficient or emotionally fulfilling to you but you will still draw your check and avoid conflict with the manager who must do it all or who will find constant fault with your work product. You could find ways of keeping your boss busy by asking for supplementary help with the tasks for which you are responsible. Let the boss satisfy his need to be indispensible by getting you assistance you really do need.
As a populist, it is hard to categorize President Trump as either a conservative or a liberal. Maybe he needs to tailor his message to the center in this country and work to build a consensus upon which a core central group of Americans can agree. Our parties and our media outlets seem to be divided into extremists on either side and so there is little opportunity for effective compromise and agreement on issues. Many of our political leaders seem to be beholden to a narrow constituency on the far right or left of our political system.
In many ways this has turned some of the traditional criteria for hiring on its head. Where once a long tenure at a particular company or in a particular job was viewed as a very positive thing--- evidence of dedication, loyalty, and expertise in a given skill, it can sometimes now be seen as a red flag to mark somebody who might be stuck in a certain way of doing things. A pattern of frequent job changes was at one time a disqualification as evidence of instability or failure.
If the guess is wrong that business owner may find himself or herself sitting on unsold inventory, paying wages to employees without sufficient work to perform and carrying overhead for excess floor space or equipment. Banks and other credit providers might start to bring pressure. On the other hand, if too much caution or risk averseness prevails then business market share and customers may be permanently lost to competitors who took the gamble.
To this add the administrative phenomena of “Groupthink” or the “System Problem” as some call it. Where considerable effort and resources have been expended in pursuit of developing a program or administrative goal it is very hard to turn the system around when so many people feel their time and efforts have been invested in an initiative.