{"id":88944,"date":"2009-12-18T16:17:00","date_gmt":"2009-12-18T21:17:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/chart-of-the-day-manufacturing-capacity-growth-2009-12"},"modified":"2009-12-18T16:17:00","modified_gmt":"2009-12-18T21:17:00","slug":"chart-of-the-day-manufacturing-capacity-was-demolished-in-2009","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/88944","title":{"rendered":"CHART OF THE DAY: Manufacturing Capacity Was Demolished In 2009"},"content":{"rendered":"
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In 2009, the U.S. experienced one of the worst bouts of manufacturing capacity destruction in decades.<\/p>\n

This is shown by the relatively large negative bar for 2009, below.<\/p>\n

This capacity destruction was likely the result of inefficient and outdated U.S. capacity being rendered uncompetitive as the economic downturn separated the wheat from the chaff.<\/p>\n

Is it a bad thing? Actually, no. The removal of uncompetitive capacity means that the remaining players face less over-capacity going forward. If there are too many weak players, they all kill each other via price competition. In the long-run this is what we want to happen — weaker players are mothballed during downturns, making room for stronger ones.<\/p>\n

The trend we show was keenly and originally highlighted by the excellent site Econompic<\/a>, though our numbers may be slightly different. Definitely check their site out.<\/a>
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