What is Going Right?

by Michael Vaughn, Certified Financial Planner
The Mutual Fund Store

With all of the negative press over the past year regarding the economy, I’m sure you may be thinking, “will things ever get better?”

It can be a depressing time to watch the news and read the headlines. Up to this point, I think it is important for all of us to step back and see the entire picture.

Is there any good news? Here is some that you probably haven’t seen.

AT&T to bring back 4,000 outsourced support center jobs from overseas.

KIA, the auto company, is hiring 600 workers for their plant in Lagrange, GA.

Microsoft Corp announced plans to open its own chain of branded stores as it looks to catch up with rival Apple Inc's successful move into retailing.

Intel Corp plans to invest $7 billion over the next two years to build advanced manufacturing facilities in the United States that make faster, smaller chips that consume less energy. The announcement comes less than a month after the world's largest maker of microprocessors used in personal computers said it would close
plants in Southeast Asia and scale back U.S. operations under a restructuring
that affects as many as 6,000 employees.

Panera Bread Co., the chain of 1,250 bakery-cafes, plans to take advantage of its debt-free balance sheet and the U.S. real estate slump to open as many as two locations a week in 2009, said Chief Executive Ronald Shaich.

Allegiant Airlines has announced 25 new routes since August and plans to increase its capacity 21% in the second quarter, not including the buildup of service to Los Angeles International Airport from a dozen communities it already serves. The airline carried 3.9 million scheduled passengers last year, up 29% from 2007, and flies its planes about 90% full.

The U.S. by far remains the world's leading manufacturer by value of goods produced. It hit a record $1.6 trillion in 2007... nearly double the $811 billion in 1987. For every $1 of value produced in China's factories, America generates $2.50. - article by Stephen Manning, Associated Press

America makes things that other countries can't. Today, "Made in USA" is more likely to be stamped on heavy equipment or the on circuits that go inside other products than the TVs, toys, clothes and other items found on store shelves. U.S. companies have shifted toward high-end manufacturing as the production of low-value goods moves overseas. This has resulted in lower prices for shoppers and higher profits for companies.

When demand slumps, all types of manufacturing jobs are lost. Some higher-end jobs -- but not all -- return with good times. Workers who make goods more cheaply produced overseas suffer.

Once this recession runs its course, surviving manufacturers will emerge more efficient and profitable, economists say. More valuable products will be made using fewer people. Products will be made where labor and other costs are cheaper. And manufacturers will focus on the most lucrative products.