Case in point: At a small factory in Wisconsin, something positive happened, something few investors are aware of -- but it's a data point that savvy investors should take note of.
Managers at Rockwell Automation (NYSE: ROK) plant reinstated a second shift, hiring 12 workers, The New York Times reported Saturday.
The adding of 12 workers to one plant may not seem like a data point of significance, until one reads further in the news story, and learns that the company's management said it saw enough new orders among its customers to justify adding people. In other words, demand is picking up for the company.
Equally significant, Rockwell's customers are: manufacturers themselves -- which suggests their businesses are seeing an upturn in orders, as well.
Economic Analysis: Put Rockwell's reinstatement of a second-shift in the bellwether category. It's another sign of stabilization in the manufacturing sector. Don't expect 'mass hirings at Factory X' or 'a new plant at Automaker Y' to signal the recovery: it's not going to appear in that fashion. The expansion will reveal itself by the addition of a second-shift here, a decision by a software company to add five people to its staff of 30 there, etc. That's how the U.S. economy's output will rise in the era of perpetual rightsizing and incremental moves. With the above in mind, know very clearly that Rockwell's decision is a bullish sign for the U.S. economy.
Closing Bell: Dubai sends jitters throughout the market (S, BBY)
Heinz looking good after the second quarter?
Why isn't Bank of America updating its shareholders on CEO situation?
Reader Comments (Page 1 of 1)
9-15-2009 @ 9:06PM
ij70 said...
Lol. I love Mr. Lazzaro the cheer leader. :)
In other news, Blockbuster is closing down 960 locations:
http://www.dailyfinance.com/2009/09/15/holy-popcorn-blockbuster-to-close-up-to-960-locations/
How many jobs is lost? 12? 20? 40?