Fisher Investments on Industrials

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HISTORY OF MODERN MANUFACTURING

 

 

The Industrials sector has a rich and diverse history, ranging from the epic building of the cross-continental railroads to the sea change in world economic development—the Industrial Revolution—and even played a vital role in the World Wars. But as revolutionary as those early events were, we’ve witnessed yet another revolution in Industrials’ development since World War II.

Among the most significant post-war trends is globalization. Liberalization of financial markets and increased openness of trade have driven foreign investment, while improvements in transportation, technology, and the ability to outsource production have enabled multinational firms to manufacture and compete globally. The result has been a change from manufacturing primacy of the UK and US to Asia, including Japan, Hong Kong, China, Singapore, Taiwan, and South Korea. US manufacturing still plays an important role in global manufacturing and in the US economy, but its impact has lessened relatively.

THE ADVANCEMENT OF TRADE AND INVESTMENT

One of the most important economic changes since World War II has been increased global integration and its impact on world manufacturing and multinational corporations. This is particularly true for Industrials because of its global diversification and production focus. Market liberalization and globalization have not only allowed for greater foreign product competitiveness and sales, but have enabled imports of cheaper parts and ...