For years economic growth has been stuck in neutral. Economists are lowering their already low GDP growth projections for 2012. Regarding this, Julia Coronado, chief economist at BNP Paribas, gave Bloomberg an intriguing insight. “Things are so lean and mean, there aren’t a lot of excesses that need to be reduced.” Although such efficiency hasn’t been able to pull the economy into high gear, it also has insulated the economy from a dramatic downturn.
That’s good news--sort of. Neutral is better than reverse, I suppose. But it does mean that the economy probably won’t be pleasant for companies that aren’t lean and mean. The good news: Plenty of fabricators I’ve seen are lean.