The real economy is manufacturing, not finance.
Pasquale Bova: Investment is always a good sign.
Secondly, there is a general opinion which I shared that seems the turmoil of the last few days in which the focus will be more on the real economy manufacturing rather the financial side or the finance, financial sides, banks, etc. Meaning the importance with the manufacturing will be emphasized from the recent events in the financial market.
There is no economy that can survive without a strong manufacturing base. There is no economy that can survive only on services. And therefore, I think the United States are taking an approach where to be considered and strengthened the manufacturing basis, reconsidering how much can be outsourced and how much can be offshored in product, in terms of production, rising cost of transportation, rising cost of labor in emerging countries and quality control issues; the old factors that I think will bring back some of the manufacturing in United States.
Pasquale Bova: There are companies that, well, there was [SanDisk] had major jump. Now, I don’t want to go into specific or single companies, but there are companies that are solid and they work very well with the [products] [IB] in the United States and all over the world. They work with foreign partners and they’re still doing very well.
How those companies will be affected by the financial crisis? We don’t really know. But I hope that the financial crisis does not overcome the real economy; the people that makes goods, that works in order to making their ideas to become and their dreams becomes reality.
Pasquale Bova: I spoke with several people here and several people in the manufacturing industry in New York during the IMTS Show and they all share the opinion that it shouldn’t be on death row.
The real economy, the economy of manufacturing, making goods should prevail and should more importance than the economy of pure services.
Good paid jobs should stay local. Of course, there is a problem in finding skilled labor and finding good technicians in education, but it’s, I think the system in the United States can overcome a minimum term of those problems. And thanks to majoring putting technology in manufacturing that can be overcome.
Innovation and increase of productivity can help the American manufacturing sector to become again extremely vital.
Recorded on: September 24, 2008