MT Magazine November/December 2022

ECONOMICS ISSUE

FEATURE STORY

16

undertake the transformations suggested by the aforementioned McKinsey analysts, the situation will be scarier than “The Exorcist” (yes, R-rated). The Denouement The challenge faced by manufacturers is daunting. But for those who show the necessary resilience and agility; who are willing to make the investments in automation, digitization, labor, and logistics; and who change the nature of their organizations to be more proactive than reactive, the benefits can be great. Almost coincidental with the release of the Business Roundtable survey in September, the World Bank released a report titled “Is a Global Recession Imminent?” The answer to that question isn’t entirely clear, as on the one hand the report points out that although global growth forecasts from earlier in the year have been “downgraded significantly,” they “do not point to a global recession in 2022-23.” And on the other, the bankers have determined that there are two developments that are symptomatic of a global recession: a weakening of global growth in the previous year and a sharp slowdown or recession in several major economies. They found that the first has already occurred, and the second “may be underway.” While that may make you feel like heading to the exits, a statement from World Bank President David Malpass that was made with the release of the report should provide some sense of solace: “To achieve low inflation rates, currency stability and faster growth, policymakers could shift their focus from reducing consumption to boosting production. Policies should seek to generate additional investment and improve productivity and capital allocation, which are critical for growth and poverty reduction.”

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step-gear transmissions that are found in the vast majority of cars, trucks, and SUVs on the road right now. So, traditional engine plants are going to decrease in number, as will the suppliers to those plants. In mid-September the Business Roundtable released its Q3 CEO Economic Outlook Index, a composite that combines CEO projections for sales, capital spending, and hiring over the next six months. The top line is that the overall index declined 12 points from Q2 2022. A read on the situation: “Global economic uncertainty continues to temper CEO sentiment for domestic plans and expectations,

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as reflected in this quarter’s survey results. In the face of ongoing economic and geopolitical challenges, U.S. policymakers should pursue pro-growth policies that will strengthen the economy and generate upward mobility for all Americans. We must remain steadfast in putting in place the building blocks for future economic growth.”

That’s Mary Barra. She also happens to be the chair of the Business Roundtable. The “building blocks for

future economic growth” are arguably the sorts of things that go into a Cadillac LYRIQ electric SUV, not a Cadillac Coupe de Ville. For companies that are unwilling to