April 14 - 24
Another week of interesting stories and insights. Here we go…
1: Contaminated fuels are a problem in the shipping industry
Summary: Improper mixing of fuels can lead to engine failure and cascading effects on a ship.
Analysis: Another potential supply chain disruption as logistics can be hampered by bad fuel mixes, or by fuel delays.
2: Kimberly Clark sells its PPE business
Summary: Kimberly-Clark was a major producer of PPE before and during the pandemic, and has sold off its lucrative PPE business.
Analysis: PPE was a major purchase category for 2020-2023 for all businesses, and its use became more commonplace. As companies demand cheaper, foreign-made products, this deal makes sense. Almost all of the localized production for masks, especially in North America, sit idle or are out of business due to higher costs and companies and governments seek cheaper products.
3: US won't accept US companies being decimated by cheap Chinese imports
Summary: The US won’t allow Chinese companies that have had subsidies and dominate markets to put US firms out of business.
Analysis: This is one of the many challenges in the US-China relationship. How to deal with imports is just one of them, especially in electric vehicles and green energy.
4: Gen Z is taking more trade jobs
Summary: Gen Z is starting to flow into trade and vocational jobs, an option for those who don’t want to go to college or are looking to do something else.
Analysis: Some starting salaries are $60,000/year, others higher, and the more skilled you become, the more you make. The average plumber in Kitsap County charges $280/hour.
5: China invests 500B RMB ($70B) in technology transformation and startups
Summary: The PBOC has a new loan program of 500B RMB, with rates set at 1.75% to support start-ups, and SMEs in technology, and other technology-related initiatives.
Analysis: The US government is investing some money into R&D for technology (several billion USD, perhaps more) but China is taking huge swings at technologies that may or may not pay off. When you don’t have access to technology, one of the ways to try and resolve that is developing homegrown - which is the route China is trying to take.
Something unique… German Robots cannot work on Sundays
Courts have held up a centuries-old ban on working on Sundays, be they humans or robots. Unions have also fought against any work on Sunday due to potential “knock-on effects,” that could bleed into the labor market.