Cautious Optimism the Phrase of the Day – as Industry Giants Watch and Consider Trump’s Changes

Trump is so committed to “Buy America” policies that he is creating a new office in his administration called the “National Trade Council.” which is tasked to encourage a continued resurgence in American manufacturing and also have a strong say in global trade policy. At the same time, opening his first official week in office, President Donald Trump warned business leaders Monday that he would impose a “substantial border tax” on companies that move their manufacturing out of the United States. (Jan. 23) AP

Businesses Talking Moving back to USA

Stanley Black & Decker – Craftsman Tools sold by Sears to them. Considering plans to continue production in the US.

Jim Loree, CEO of Stanley Black & Decker, believes their Craftsman acquisition is a perfect opportunity to “re-Americanize . . . this legendary brand.” Producing Craftsman tools in American, says Loree, makes “good business sense,” and they plan to construct a manufacturing plant to do just that.

Carrier Air conditioner manufacturer – is staying in Indianapolis after all. Reached and confirmed an agreement to keep nearly 1,000 jobs in Indianapolis.

Ford Motor Company, who recently cancelled the construction of a $ 1.6 billion manufacturing plant in Mexico, and instead will add 700 jobs in Michigan. However, it appears Ford will simply move the Focus to another Mexican plant Ford opened in 1986 according to USA Today.

FoxConn International – the world’s largest contract electronics maker (I-Phone), is considering setting up a display-making plant in the United States in an investment that would exceed $7 billion, company chairman and chief executive Terry Gou said. It’s a possibility based upon many factors and not yet firm enough to celebrate.

Foxconn business partner Masayoshi Son, head of Japan’s SoftBank Group Corp, talked to Gou before a December meeting Son had with Trump. As a result of the meeting, Son pledged a $50 billion of investment in the United States.

GM plans to invest $1 billion in its U.S. factories and to create or keep 2,000 manufacturing jobs as well as 5,000 positions in auto financing and engineering — moves the company had said were being planned well before the election.

Wal-Mart’s hiring increases will come largely from plans to open and remodel stores.

Ford and Fiat Chrysler discussed hiring plans based on other market forces.

Hyundai said Tuesday that it plans to invest $3.1 billion by 2021 on research and development at its factories in Alabama and Georgia. Chung Jin Haeng, chief executive of the South Korean automaker, said the decision had little to do with Trump. “The U.S. market is strategically important,” he said.

Alibaba has said it expects to add a million U.S. companies to its online retail platform in the next five years.

December 2016 showed an uptick in construction of apartments and some housing as it climbs out of the housing fiascos of past years.

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Starting off here as I mean to go on with my writing–as fair and unbiased as I can be given much of this is about opinions.  Opinions as we all know plus a dime doesn’t even pay for a penny-sized candy in today’s market.

Let’s look at the elephants in the room.  Big Business and President Trump

If we as households need to upgrade our small businesses, home appliances, or remodel our homes if we own them, many of us  less than millionaire types have to plan, seek financing, consider budgets, and determine if the item is a reasonable option, then save up if necessary (or intelligently) to buy.  There are a lot more decisions to make to finally have that upgrade become reality.

Now add a minimum of six and often nine digits to any of those upgrades and you can begin to see the enormity of making decisions which are not only yours but must filter through a multitude of hands from major stockholders, boards of directors, chief executives, and financial investors. Decisions which involve that much money and assets is not a two or three month from start to finish at all. Neither is beginning days of a new governmental changeover.

So while I absolutely applaud the need to bring jobs back to our shores, to hold businesses and banks accountable for decisions, and to expect someone I voted for to begin to make good on promises given, I am also a cautious realist after years of living.  Not since the sixties have I seen such an unsettling time nor have I ever seen such a massive display of puerile behavior.

Big business may make projections, statements of possibilities,  or announce sugarplums of forecasts; but, in actual fact, they have way too many things to consider, too many if/thens to focus on, and too many people involved to make a bold statement in less than a month.  Donald Trump is himself a businessman and negotiator so he is aware of these facts. Alternate possibilities and projections are based on realities and events. So when we average joes and janes hear something about jobs flowing in, we also know that it isn’t the little guys that make a ripple in their actions.  It is economics.

Companies and industries around the world are holding their corporate breaths to see exactly what President Trump will put in motion by executive order or by suggestions to congress. They see the chasm already forming. From experience, they also know it is a wait and see time. Given the President’s inaugural address and government’s historically poor work habits on issues, they are simply speaking in generalities and placating until the president’s actions and plans come to fruition.

Mainstream media set up Obama as their media darling as much because it was profitable as those back in the shadows were demanding they perform this service.  Money talks and BS walks. They learned to perform their roles, regurgitate their canned news, and never, ever question their demigod out of fear or in some cases slavish devotion. Stockholm syndrome on steroids.

This ongoing feud with media is going to be a very divisive issue until mainstream and the new administration reach some understanding and cautious agreement.  President Trump is not and has never been a politician.  His function, experience, and interests have been in an entirely different field. Where politicians coat their lies in honey and serve it up on golden platters and if they fail simply move on to the next gimmick, businessmen know that their word is their bond otherwise they fall flat.

He has been choosing his cabinet members with a mix from hardnosed military, to strong patriots, to staunch constitutionalists, to political figures with many years of experience. It remains to be seen how much of their advice and experience or how often he listens before acting. Obama himself lost or replaced many in his cabinet at least once in his eight years for whatever reasons.  It is reasonable to assume Trump may eventually do the same, though I hope he doesn’t and that he actually listens, plans, then acts upon their opinions and beliefs.

Vice President Pence is a smooth well-trained speaker and President Trump is not. To expect anything different is ridiculous, demeaning, bigoted, biased, and prejudicial. Mainstream media has become cookie-cutter perfect over the last eight years, providing a ready option to facilitate whatever twist Obama wanted to display on his goals.

We as voters had grown tired of that and over the presidential race this time actually had our eyes opened with real proof rather than uneasy speculation just how far media had deviated from truth and non-partisan reporting. That is at least one reason Trump was able to win.

The media now has to learn quickly that this is a different animal from all that had come before. He is used to scrapping, returning blows, and getting ahead.  You were warned even before he made it through the primaries to the general election.

Do not believe that the general public is not aware of that fact or that after having been berated, devalued, morally despised, threatened, brought up on charges, and had our lives turned upside down that the anger we feel for the current political party pundits or media hacks has cooled down.  After witnessing all the attacks both verbal and physical, after being talked over and lied to, and after feeling less than acceptable, we have had enough.

The pitiful cries of adult-sized babies who are finally going to be answering for their actions and choices is hilarious. Life has choices.  Murphy’s law says those choices “ain’t always gonna be good ‘uns.” Grow up, give tthe man and yourselves the respect to overcome the beginning chaos then when you see problems, follow up with the right ways to examine, change, or stop them.  It is what conservatives have had to do for eight friggin’ long years. It’s your turn and we could care less how it hurts your feelings. You did not use common sense, respect, or good manners when addressing ours. 

Trump is not polished nor a politically correct speaker but he is tackling so far to the best of his ability the promises he made to the middle income and the forgotten.  I have no idea how long it will take for the new administration to settle down and settle in.  However, attacks and petty nitpicking will definitely not help either side to go forward.

Give him the chance or be run over.  Deal honestly and fairly or be attacked in return. That is his style.

Words of advice seems to be — Shape up or ship out.

Businesses are being cautious.  Understandable. Seeing is preferable to speculating. Planning is preferrable to last minute response. Citizens who elected Trump are being optimistic for a change rather than cowed and abused. Trump? Well he is a salesman, a shark, and from all accounts apparently a successful businessman…

What liberals don’t get is that in many ways, Trump sits more firmly at the fulcrum of a teetertotter than they realize. Otherwise, the establishment Republicans would not have been so frantic to stop him.

Those Democrats as well as RINOS in congress who continue to roadblock every word said, may find their own lives as politicians examined for truth, honesty, and results of voting record. That is in no way a threat.  It is time we as the public held congressmen up to the x-ray machine and see what we have been allowing to determine our lives and livelihoods for the last twenty or more years.

–Uriel–

 

About Uriel

Retired educator and constitutionalist
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7 Responses to Cautious Optimism the Phrase of the Day – as Industry Giants Watch and Consider Trump’s Changes

  1. SafeSpace says:

    Repatriating manufacturing has a couple of not-so-obvious downsides. First, for impoverished nations like Mexico, every job lost means another potential refugee family trying to cross our border in search of work. Second, for China, the major holder of our sovereign debt, every bit of lost sales revenue may have to be made up via higher interest rates charged to Uncle Sam, or by a reduction in the total amount of our debt China holds.

    None of this is simple and, as Uriel skilfully points out, major global businesses invest for the long term. Unlike the fools in Congress and the media, they make investment decisions carefully and deliberately, focusing on results five, ten, fifteen years out. They are not married to the American election cycle when it comes to advance planning, and they are often slow to react to political changes we see as massive. Go back and re-read Chung Jin Haeng’s comments and you’ll see the global business perspective, and its long horizons, very clearly.

    • Uriel says:

      Great points. We often forget that those jobs are lifelines to others as well. Reaction from China will likely be costly too.

    • Popular Front says:

      Dead right. There has been great wailing and gnashing of teeth from the labour unions here in Australia about both Ford & General Motors’ decisions to cease vehicle manufacturing here and rely on imports instead. Toyota is going too. The Left and the unions have been bashing the government with this issue demanding “why haven’t you done something about this?” Like what? The decisions were taken in Detroit – or wherever – years ago and won’t be changed now. Hell, we even had an Aussie as Ford’s CEO a while back – Jac Nasser – and he couldn’t save the local factories.

      Militant unionism and unrealistic wage demands have finally killed the Aussie car industry. Why pay anglos excessive wages when Fuk Yu Tu will do the same job for a fraction of the wages up in SE Asia? That’s Basic Business Management 101.

      • Uriel says:

        Unions began for a good reason but like a lot of good intentions they were easily corrupted. I can still remember long years ago my dad was excited to have a union. Six months later and he hated them. Now the main ones side with socialists. Which bodes well for no one but the top dogs.

        • Uriel says:

          Trump just formally nixed TPP. Said he wanted bilateral agreements that could be a blessing for some countries

        • Popular Front says:

          Very true. My paternal Grandfather was a coal miner, socialist and union man to his bootstraps and a true believer as we can them here. My beloved Uncle Eric (‘the Red’) was a card carrying communist who fought for two years in Spain. Neither of these two fine men could convince me that leftism was the way to go though I listened most attentively in my youth.

          Grandad eventually tired of union blockheaded bolshevism and came out of the mine and made his fortune in mining equipment leasing – enough so that he and Nana lived for 11 years in Pacific Palisades(!) Ca before the big C got him, courtesy of the coalface years before. Eric the Red got cheesed off with lunatic leftoid wannabes infiltrating his Party and eventually tore up his Party card to concentrate on trout fishing. We had many political conversations after a day’s fishing and he said there were only a few things he would have changed. Spain was a huge influence in his life and he said people stood up and went to Spain because they ‘truly believed’ but were sold out during and afterwards, which is true, my research shows.