This is Mary Walden with economist MW welcoming you to the economic perspective. Today’s program looks at logistics to the rescue. Mike, the national economy has now set a record for the longest continuous period of economic growth, at ten years. That’s certainly good news, but it does raise a question – Why? What is behind this happy result? Do economists have any answers?
- One possibility is the economic recovery has been slow – meaning excesses haven’t built up
- Another is logistics, particularly regarding inventory management
- Technology has made it easier to produce closer to what is being sold – just-in-time production
- Important because inventory build-up has historically been one of factors leading to a recession
- Too much inventory – production cut and workers are laid off
- I’m MW
And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.