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You’re going to hear more of this stuff. We are on a sound economic track here.

“Davidson” submits:

Recent headlines have focused on the drop in Capacity Utilization but ignored has been the rise in Manufacturing Capacity. The historical pattern does show a correlation between Capacity Utilization and recessions. Ignored this time however has been the rising trend of Manufacturing Capacity which is occurring due to the reshoring narrative. Common sense should trigger the analysis that capacity needs to rise to reshore manufacturing and initially, before that capacity is fully utilized, a drop in Capacity Utilization can be expected. Based on the many corporate reports today, capacity is being expanded to insure better supply chains. Taiwan Semiconductor and Intel are good examples of building fab-manufacturing facilities of many Billions expenditures that take a period to ramp to full capacity. More than 10Trillion of additional investment in the US has been announced in the last 5 months. Manufacturing Capacity is at record levels and rising.

This is a very good economic trend.

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