Manufacturing takes a hit overseas

The economic ripple effect is making its way to China and its factories. The U.S. & European market demand has slowed down causing sales & production to take a hit. Some companies experienced a growth rate of 70% in business last year and have fallen by 30 to 40% so far. After seeing a tremendous increase in freight costs due to the pandemic, these costs have recently fallen as well, signaling the decrease in demand for Chinese exports. This has caused an excess inventory of products in the factories and caused some companies to start slowing production. Recent trends suggest that Americans have spent more on services compared to goods. Although we cannot call this reduction in demand a recession, the global economy may be heading in that direction. If you are a business owner, what do you need to do to be prepared and stay afloat? We will be offering more useful tips this week. Please be sure to subscribe and follow more tips this week! #business #help #accounting # economy #recession