A flailing auto industry? Not in Kansas (City) anymore
This marketplace podcast is brought to you by Sino an enterprise e signature solution create custom workflows and get documents like signed from any device, save thousands of dollars on paperwork closed deals up to four times faster and enjoy seamless integration. With the cloud platforms. You already use? Visit sign now dot com slash marketplace. And get a free thirty day trial. The US and China are miles apart from deal, according to commerce secretary Wilbur Ross in New York, I'm Sabrina short infra David Brancaccio. Who's on assignment the US China are in the middle of a ninety day trade truce as they work on a possibly on very ambitious deal. An agreement in such a short period of time would be a heavy lift given all the wide disagreements over intellectual property government subsidies commerce secretary Wilbur Ross said as much when he told CNBC this morning that the US and China work, quote, miles apart on a deal and yet markets were spooked futures. Immediately dropped we've got Diane Swonk with us to help us out with this. She's chief economist at tax advisory firm. Green thornton. Hi, don. Good morning. Why were market so disappointed by this comment by the secretary? It's really a reality. Check markets had been artificially buoyant and sanguine about what was going on between the US and China, and we had heard mixed messages coming out from the administration. You just can't close the gap. Gap between here, and what the US wants China to be in what China wants itself to be in the future over twenty years of disagreements, and if you months time, and so further complicating things, I think also that markets weren't really understanding is the government shutdown means it all the details of trade negotiations can't be written because the US trade office is also shutdown. Why we're markets hopes up in the first place. You know, that really is an interesting issue is that how much algorithms are. Now. Playing on words, you really saw the markets rallied on the idea that China US trade talks were persisting, are you seeing that algorithms actually scan like news articles or reports for key words and then make trading decisions based on them. Absolutely. You've literally got algorithms at scan the words and make a trade chief economist attacks in advisory firm grant, Thornton good to talk to you you to the growing competition for talent in a tight labor market has pushed companies to. Spanned into places one might not immediately expect the Milken institute released. Its annual report ranking the nation's best performing cities looking exactly where job growth is happening in the US from K UT in Austin, marketplaces and dealer has more number three on the list is Austin, Texas. Dell's here and apples adding other five thousand jobs soon number to San Jose close to Silicon Valley in a little cheaper than San Francisco. Number one Provo Utah. Drove a really good story. Kevin cloud in is with the Milken institute, which put out the study. He says provost model is heck spin off and life science jobs that are looking to be a lower cost location in a place where there's a lot of support from the local universities, the milk and rating system is based on job creation. Wage gains. Also wear techjobs end up. Jed CoCo is TV conham is to the job site. Indeed dot com, Tech Trends tend to be a specially visible. Remember Amazon's HQ to competition. City officials certainly do. But CoCo says there's a bunch of reasons companies set up shop where they do cost and availability of workers infrastructure in the area and cost of living not to mention tax incentives from cities and states in Austin, Texas. I'm eighty Euler for marketplace. This marketplace podcast is brought to you by with Sabi. Hot cloud storage. If your company's thinking about moving data storage to the cloud, check out the company. That's rethinking cloud storage with Sabi is less expensive than just the maintenance on your current on premises storage. Plus, it's eighty percent cheaper and six times faster than Amazon S three with no egress fees. Experience. It for yourself with free unlimited storage for a month. Go to Assab dot com. Click free trial and use the offer code was ambi-. Ford and GM have recently announced plans to restructure, cutting jobs and closing plants and electric carmaker. Tesla announced thous of job layoffs last week to cut costs where there are places where the US automotive industry is doing pretty well, one of those places is the Kansas City region, which has to thriving plants marketplace hub reporter, Casey you ours. Peggy low explains. On the production line at nap. Hide for brand. New transit cargo vans lineup for some finishing touches. They were delivered from the Ford plant a few miles away lines. Sibley line starts at this back door and run all the way down is now pieds general manager workers are doing what's called up fitting, which means they're outfitting new, vans and pickup trucks with shelving. Reflective decals anything the consumer wants Muller says their specialty is a work ready mobile office. So right here is a supervisor struck for a job site. He's got his essentials. GPS? Strobe lights toolbox. Ladder AC series two plants here. One Ford the other GM have attracted other companies in jobs. The economic impact is about twelve billion dollars. According to the Kansas City area, economic Development Council, and that's just another reason cities want auto plants Mark Wakefield a Detroit analyst with Alex partners, a global consulting company says plants create an instant ecosystem of businesses if you can get that. Car plant to go in and actually hopefully pickup truck plant tour SUV plan that's a one time shot, and then you get all of this surrounding multiplier effects. But notice that Wakefield says it all depends on what kind of vehicle is being made Ford makes the f one fifty here the best-selling pickup in the US in also makes the transit in Kansas City. That's a cargo van introduced in the US in twenty thirteen sales grew last year more than eight percent. Seventeen of the companies connected to the plants key drivers of Kansas City's automotive industry. Are located underground literally. This is subtropical ass-. Michael bell is a VP with hunt. Midwest the company that owns subtropical is it's a huge industrial park. Carved into the bluffs along the Missouri. River filling up space left over from limestone mining bell says of the fifty five companies operating underground fastest growing industries over the past five years has been autumn motive, but it's not a good news here. Sales of sedans are on the skids GM makes Chevy Malibu in Kansas City, and those sales are down. Now GM is looking to the Cadillac XT four which it began building here last year in Kansas City. I'm Peggy low for marketplace. An in New York, I'm Sabrina short with the marketplace morning report. For P m American public media. This marketplace podcast is brought to you by the United States postal service. Every day. We talk about how innovative companies are reinventing the way business happens. But none of that's possible without the right people to enable it people who get packages to over one hundred and fifty million delivery points affordably and on time with the latest technology and expertise. So who can help you deliver the future of commerce, the United States postal service? See why they deliver more ecommerce packages to homes than anyone in the country at USPS dot com slash future.