1660251317221 Mike Bacidore

It's about time

March 8, 2013
Why are we always barreling headlong into the future?

Remember to move your clocks ahead on Saturday night. Daylight savings time ends at 2 A.M. this Sunday, March 10. Heading into this fast-forward weekend, the U.S. Bureau of Labor Statistics announced the unemployment rate had fallen to a five-year low of 7.7%. The bureau announced 236,000 jobs were created in February, offering a quick, encouraging glance over our shoulder as we head into the weekend and looming sequestration, which could undo all of that and more.

As surprising and encouraging as the February jobs number were (the number would have been even higher, if not for the 10,000 jobs cut from government payrolls), sequestration’s spending cuts could mean a quarter of a million fewer jobs by year’s end, according to the Congressional Budget Office.

Mike Bacidore has been an integral part of the Putman Media editorial team since 2007, when he was managing editor of Control Design magazine. Previously, he was editorial director at Hughes Communications and a portfolio manager of the human resources and labor law areas at Wolters Kluwer. Bacidore holds a BA from the University of Illinois and an MBA from Lake Forest Graduate School of Management. He is an award-winning columnist, earning a Gold Regional Award and a Silver National Award from the American Society of Business Publication Editors. He may be reached at 630-467-1300 ext. 444 or [email protected] or check out his .

Sequestration, or what we were calling the “fiscal cliff” when the opportunity to avoid it still existed, is the result of the Budget Control Act of 2011 (BCA), which we also called the “debt ceiling compromise.” No wonder it’s so hard to keep track of this, when everything has multiple names.

The legislation’s intent was to force the Joint Select Committee on Deficit Reduction (yes, of course, this has another name, too — the “Supercommittee”) to create a plan to cut federal spending over the next 10 years by well over $1 trillion, or the BCA would take effect and do it for them. Well, that’s where we are now — on the brink of losing $85 billion in government spending this year, losing a quarter of a million jobs in a U.S. economy that’s showing signs of recovery, and, oh yeah, losing an hour of sleep on Saturday night.

Should we lose even more sleep, worrying about it? John Walker, chairman of Oxford Economics (www.oxfordeconomics.com), and Ken Mayland, president of ClearView Economics (www.clearvieweconomics.com), see little reason to worry. Both spoke at the MFG Meeting (www.themfgmeeting.com), a gathering of more than 600 manufacturing leaders in Waikoloa, Hawaii, this week. The event is the joint effort of the Association for Manufacturing Technology (www.amtonline.org), National Tooling & Machining Association (www.ntma.org), and Precision Metalforming Association (www.pma.org).

Neither Walker nor Mayland expects the U.S. economy to drop into recession, and both believe manufacturing will remain strong. Because the middle class is growing in other countries, they will transform from producers into consumers. But Walker admits that sequestration creates a shadow of uncertainty, which could slow the economy, but won’t derail it.

So, as you move your clocks ahead this Saturday night before you go to sleep, rest easy. The Japanese recession could be headed for an end, the Eurozone is stabilizing, China just might pull it together, and, if Walker and Mayland are right, sequestration soon will pass as quickly as that hour between 2 A.M and 3 A.M.

Sleep in on Sunday. But remember, when you wake up, that we’ve all moved ahead an hour. Don’t miss your flight. There’s work to be done.

Read Mike Bacidore's monthly column, From the Editor.

Comments

Cool blog! Don't you wish the too big to fail crowd worldwide were working as hard as we are to maintain stability and relevancy?
Stanton McGroarty

Sponsored Recommendations

April 14, 2025
This paper addresses where leaks commonly occur, leak detection methods, and practical advice for an audit and repair plan. You'll learn why an ongoing leak detection and repair...
April 14, 2025
Here are some things you can do in between formal preventive maintenance visits on your electric screw compressor to extend compressor life and prevent downtime.
April 14, 2025
They cost more than refrigerated dryers. They need more parts and service than refrigerated dryers. They increase demand for compressed air. So when should you use a desiccant...
April 14, 2025
Follow these ten steps for energy savings in your compressed air system.