Marketplace "March is ancient history"
12 snips
Apr 30, 2025 
John Eibond, a reporter at The Wall Street Journal, discusses Nike's challenging efforts to move sneaker production out of Asia. He emphasizes the complexities of reshoring, automation, and design within the footwear industry. Also covered are recent GDP calculations indicating a stable U.S. economy, with rising investments in technology despite a decline in industrial equipment purchases. The conversation touches on the broader economic landscape, including consumer spending trends and the emergence of school choice initiatives in Texas.
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Surge in Business Tech Spending
- Business investment in computers rose nearly 113% in Q1 2025, the biggest spike since 1983.
- Companies stocked up on tech anticipating new tariffs, not signaling a production boom.
No Stagflation Yet
- Although inflation rose 3.5%, the US was not in stagflation during Q1 2025.
- Imports heavily influenced GDP shrinkage, but consumer spending and unemployment remained stable.
Nike's Reshoring Failure
- Nike's attempt to reshore sneaker production failed due to challenges automating soft materials.
- Machines struggled to replace skilled labor adjusting for fabric variations and rapid design changes.