b'18 Economic Update (continued from pg 17)to ship equipment around the world, in part becausespecifically,theresthishugedemandcomingup of issues in the Red Sea, said Basu. Cargo is beingagainst a shortfall in global supply, said Palisin. diverted and having to travel much longer distances in many instances, especially cargo from Asia. ThatWhiletheU.S.iscommittedtothereshoring leads to increases in the cost of transportation andofproduction,thetaskofincreasingdomestic insurance, which squeezes margins for contractors. manufacturing and delivery systems will take time. We are not going to turn things around right away, Palisin confirmed that supply chain disruptions aresaid Palisin.not a thing of the past. We are seeing shortages aroundsemiconductorchipsandsomeotherThe road aheadtechnologicalproducts,aswellaschemicals, equipmentassembliesandmetalparts.ThatsDespiteoptimismonthepartofbusinessesand causing production delays and late deliveries. consumers,economistseyesomedarkcloudson thehorizon.Intheopeningmonthsof2025,they Thereareanumberofcausesfortheproblem.advise construction companies and manufacturers Over the past year the nation has lacked sufficientto keep a close watch on the following areas for any skilledworkerstomeetproductiondemands.Anddeleterious changes:in an environment of high interest rates and slowing growth, companies did not invest as much as required# Interest ratesin new facilities. As for the semiconductor situation Goingforward,themajorconcernfor businesseswillbethepaceofinterest rate cuts and where they will end up, said Dedicated to keeping its members at the forefront in their industryYaros.# Inflation Iftheconsumerpriceindexreturnsto positive territory, that could throw a monkey wrenchintomanybusinessplans,said Conerly.# TariffsTariffs amount to price increases for our members who have to buy materials from abroad, said Palisin. # GeopoliticsAn increasing level of turmoil around the world can disrupt supply chains, throwing a monkey wrench into the economy, said Member MICASWICAESICA Conerly.SEICAWIACSICAConcerning as these risks are, economists anticipateafairlybenignoperating The InsulatorDecember 2024'