Reducing America’s Carbon Footprint

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In an effort to alleviate its universal carbon impact, over the next 10 years Delta airlines will be investing $1 billion into fuel-efficient aircrafts, replacing single-use plastics with a greener substance and more.   Ed Bastian, the firm’s Chief Executive pointed out that:

“There’s no challenge we face that is in greater need of innovation than environmental sustainability, and we know there is no single solution.”

The current situation is that it has been very hard for airlines to help preserve the environment since the development and supply of biofuels is minimal and challenging.  While technology has advanced so greatly in other parts of the transportation industry, the air travel part lags behind and we are not witnessing any futuristic fuel-efficient planes.  Still, Delta is committed to making an impact.

Meanwhile, in California researchers might be closer to a solution.  At the Viterbi School of Engineering in Southern California’s University, work is being undertaken in conjunction with the U.S. Department of Energy’s National Renewable Energy Laboratory. A metal carbide nanoparticle has been discovered as having the capacity to  convert CO2 into fuel.  Should this actualize it would be the first ever time a would be able to produce sustainably at low temperature resulting in the production of particles at a low cost, but industrial scale, while at the same time having a substantially lesser impact on the environment, ultimately diminishing greenhouse emissions throughout the world.

America’s Manufacturing Sector: Good, Bad or Somewhere in Between?

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The manufacturing industry in the US has gotten a bad rep over the last few years.  On and off.  It’s hard to determine where it stands today but in this article we will take a look at some of the more accurate indicators.

From around June 2019, a recessional atmosphere occurred in the industry.  But that turned around in January according to a report from the Institute of Supply Management.  The report showed a jump in purchasing manufacturing index to 50.9 – even higher than predictions of 48.5.  According to NY’s ING’s Chief Economic Strategist, James Knightly:

“It seems likely that the phase one trade deal with China has generated a positive lift for the sector by giving some certainty that there will be no more tariffs, at least in the near term.”

Furthermore, it is believed that 2020 will “likely be a better year for US manufacturers,” due to the stabilization of international growth and the light at the end of the tunnel for domestic economic activity.

On the other hand, Anneken Tappe of CNN Business would have us believe that “America’s manufacturing sector is in a recession.”  But, she adds, “that is only part of the story,” and illustrates how two factors are at play here: the expansion of factories and their recession. In 2008, the manufacturing industry began its road to recovery, adding around 1.4 million jobs. But still, it has been dipping for the last 40 years.  

So that’s the current summary of the good and bad in America’s manufacturing sector.

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America is currently harboring an overwhelmingly huge debt right now, owing more than four times what it did just two decades ago. oXYGen Financial founder and CEO Ted Jenkin said:

“Like any budget that you have in your household, we have too little income and too many expenses. [However, this could have valuable significance for the consumer.  It doesn’t look like interest rates will increase all that much in the short-term since if they did reach 6 percent or over] the net interest on the debt in our fiscal deficit would actually be the No. 1 line expense on our budget.”

But is this really the case?  If – as Jenkins would have us believe – the consumer is in a better position now, how come the recorded number of new vehicles purchased was lower last year than in previous years. According to research from Cox Automotive, Edmunds and J.D. Power/LMC Automotive, there was a 1 percent decrease in sales from 2019 as compared to 2018 – the lowest in sales since the 2014 figure of 16.5 million.

President of Americas Operation and Global Vehicle Forecasting Jeff Schuster said:

 “Despite a lot of noise and some uncertainty with light-vehicle sales, 2019 has turned out to be a strong year. Much of that uncertainty has dissipated with USMCA nearly across the finish line, the progress with the China trade deal and an economy that is expected to be supportive.”

Trump supporters also believe that this will help business leaders believe that any bolster in consumerism will lead them to put faith in politicians for the upcoming 2020 election.

Oil Growth Takes a New Path

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With constant and increasing talk of climate change and environmental preservation and moves away from oil and gas related products, major firms are increasing their manufacturing of plastic products.  These firms include ExxonMobil and Shell.

Given that petrochemicals (the chemical materials that derived from petroleum through a process of refining) now makes up to 14 percent of the use of oil, it is anticipated that there will be a doubling of the production of plastic over the next two decades.  Indeed, according to Steven Feit, Staff Attorney on the Climate and Energy Program at the Center for International and Environmental Law (CIEL) said:

 “In the context of a world trying to shift off of fossil fuels as an energy source, this is where [oil and gas companies] see the growth.  [As such these large corporations] are looking for a way to monetize it.  You can think of plastic as a kind of subsidy for fracking.”

in addition, today natural-gas futures dropped to their nadir in almost four years.  plummeting below $2 million British thermal units the drop resulted in a 5.4 percent dive to $1.895 per MMBtu.  This is simultaneous to the explosion in shale which has revolutionized the entire energy industry in America, inundating the market with natural gas and oil.  Predictions by the US Energy Information Administration include an increase of 2.9 percent this year in the production of dry natural gas.

American Businesses and Local Manufacturing

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While the last few years – decades even – have seen manufacturing move away from America and toward Asia, that trend may be changing.  This doesn’t necessarily indicate a complete transformation but there do seem to be additional manufacturing workers in the United States today.

Arizona is a fantastic illustration of this. International companies in the area currently have close to 110,000 locals on their books.  Out of that, 24,300 work in the manufacturing industry which accounts for 22 percent of all globally-created jobs in the region.  This trend has been increasing over the last 5 years as data has shown that there has been a 35 percent increase since 2014 in the number of internationally-created jobs in Arizona.

This trend seems to not be confined to Arizona. According to recent government data over 62 percent of new US manufacturing jobs were created in the last five years. Some examples of these firms are: Anheuser-Busch, BP and DHL.

Ohio is developing a similar reputation.  over 13,000 locals are employed by Honda’s local manufacturing facilities.  Honda is doing amazing things for the local economy with its $10bn annual expenditure in the region.

And then there are the large automakers which manufacture cars in America, specifically Acura, BMW, Honda, Subaru and Toyota.  in addition, Ohio-based gas motorcycle manufacturer Cleveland Cyclewerks, recently announced its entry into the electric motorcycle industry following its production of gas-powered motor vehicles through domestic (and overseas) assembling, manufacturing.

Starting a Business in 2020: What to Know

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In this video, Foundr CEO Nathan Chan, the CEO of Foundr gives a brief introduction to his TOP 5 most profitable online business ideas for 2020. First, use current skills you have and sell it as a service If you are a designer, a videographer, a copywriter, a nutritional advisor etc.: go on to one of the many freelance sites out there and sell yourself. Start a side hustle. Ask yourself what are the skills you have and then go out and sell those skills as a service. Sell your skills to businesses. You can also teach the skills you have. Online courses are becoming increasingly popular.

https://www.youtube.com/watch?v=2y4765zL81g

2020 Economic Outlook

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The outlook for 2020 for the US economy is overall good, according to key indicators including: interest rates, stock market, consumer expectations, inflation, employment and, in particular GDP rate as that is an accurate indicator of America’s production output.  However, others have suggested a reduction from the 2019 2.2 percent figure to 2 percent this year. Indeed since 2017, real GDP growth was actually higher than average with a 2.5 percent figure for each calendar year.  This was mainly attributed to fiscal stimulus.

With Trump’s promise to boost advancements in the economy to 4 percent which is extremely fast, and – some would say – even too fast leading to overconfident consumerism. This could then result into a problematic boom and ultimate bust to the economy.  Indeed, there has been a marked growth spurt in the nation’s economy, especially as compared to other developed economies.

The dollar is also encountering a safety net, similar to the Swiss franc and Japanese yen.  This means that investors will more likely want to put money into US bonds and stocks.  There is an anticipated 3 percent growth within the next two years of the US dollar.

US Economy and Growth

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America’s economy has enjoyed a steady solid growth rate for over 10 years.  The question is, where, how and what does the next decade look like?

According to a recent Bloomberg article, most of the wealth that the nation has generated has been from just 1% of counties. A recent report from the Bureau of Economic Analysis  found that a staggering 32.3% of US GDP was generated by 31 US counties.  What is perhaps even more odd about this statistic is that last year those 31 counties had only 26.1% of employed Americans.  

So it seems that the bones of the US economy is becoming further concentrated in larger cities and by the coasts.  Rural counties are dying down which could have implications for labor mobility and infrastructure spending.

But who exactly are these people who are bolstering the economy today?  According to a recent article in Yahoo Finance it is the immigrants who are making this happen: 

“Over the last decade, 42% of the net growth in U.S. population, and 54% of the net growth in the workforce, can be attributed to immigration. During the same period, the birth rate of native-born Americans has decreased, and the death rate has increased, due to aging. Immigrants now comprise roughly 15% of the total U.S. population. And because they tend to be younger than native-born Americans, immigrants now comprise about 17% of the U.S. workforce.”

With unemployment back at to its lowest since 1969 and a 3.1 percent increase in average hourly wages from 2018,  wherever its coming from and whoever’s providing it, the employment situation in America is positive.

How Technology Can Help You Tackle Personal Finances

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Money management is complicated. Our lives are very busy, and it’s hard to have the time, energy and knowledge to keep on top of every dollar we spend and invest. You become a much smarter consumer, however, when you can keep track of these items. You certainly want to know how much money you are making, where and how you are spending and saving, and ultimately what and with whom to invest.

Thankfully, modern technology offers opportunities to learn about money and the economy, and how to stay on top of your personal needs as they change. There are many ways to use technology today to learn more about investing and budgeting, and to understand ways to save and earn for your future.

Educational Videos

One great way to become a more knowledgeable money manager is to learn from one or more of the companies that produce free educational videos, like this Youtube channel from Fisher Investments, to give consumers more information and know-how to help towards your personal financial success. There are videos of this sort available from many sources, and they offer an incredible resource to enable you to become better educated and to learn from those in the know. Do your own research, watch tutorials, and listen to podcasts to gain financial literacy. Understanding market trends and volatility allows you to have the information, skills and confidence to make responsible financial decisions.

Software Programs and Apps

A critical aspect of managing your cash flow is your ability to plan and organize. Many software programs and apps are available to help you manage your money. Using technology resources can make establishing and maintaining a personal budget easier, faster and more accurate. Cumulatively, these tools offer insight into your spending habits, send warnings as you near your budget boundaries, remind you when payments are due, and more.

With the wealth of technology available today, everyone can find a way to become more financially savvy, and to have programs at their fingertips to help with their financial journey. Look for online resources and technology tools to help you to do your job better. And of course, if the task gets overwhelming or these tools just aren’t enough, you can always reach out to a financial adviser for further assistance.