A professor at the Indiana University Kelley School of Business says the announced layoffs at Columbus-based Cummins are a signal of the continuing impact of a trade dispute between the U.S. and China, according to Inside Indiana Business.
“We’re seeing a significant slowing in the global economy,” said Phil Powell, professor of business economics. “What we need to realize is that Cummins is a global company, and a lot of their sales are in the faster-growing economies in emerging regions of the world, including China.”
Powell says China’s economy is forecast to grow 5 to 6 percent in 2020. While that appears strong compared to other countries, including the U.S., Powell says China’s economy had been growing by 10 percent annually.
And he warns that other Indiana manufacturers that rely on the export market could feel the same pain if the trade conflict doesn’t resolve soon, according to Inside Indiana Business.
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