Lisa Anderson was quoted recently on the shape of the Inland Empire economy, and how it looks heading into 2025.
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Inland Empire economy braces for 2025
Heading into 2025, the Inland Empire economy appears to be in relatively good shape. One purchasing manager, quoted anonymously, said “orders are up about five percent compared with one year ago, while another predicted the index will “rebound” in January.“
That cautiously optimistic assessment of the Inland economy is shared by Lisa Anderson, founder and president of LMA Consulting Group in Claremont, which specializes in manufacturing strategy and supply chain management. Unlike one year ago, when many economists were predicting a recession, locally and nationally, there are no signs now of an economic slowdown, according to Anderson. “l think, for at least the first half of the year, the Inland Empire economy will remain strong,” Anderson said. “A lot of the Inland Empire economy is based on logistics, and that sector should remain strong. But there won’t be a recession, and only mild inflation, at the most.”
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One day into his second term, Trump signed multiple executive orders, many of which had to do with tariffs and restrictions on some trade.
He also began what the administration calls its America First Trade Policy, which orders federal agencies to assess U.S. trade deficits, make policy recommendation based on their findings and make trade strategy a matter of national security.
A possible trade war with China is a particular concern in the Inland Empire, because so many of the goods shipped from there end up in Inland warehouses, but Anderson said she is not concerned.
“I think (Trump) will use the threat of higher tariffs as a negotiating ploy to get better deals,” Anderson said. “Higher tariffs would lead to higher prices on some goods, but not all of that would be paid for by consumers. Some companies will put up with higher tariffs.
“I’m working with some now that are doing that.”
The second Trump Administration ultimately will be good for the Inland region, Anderson believes.
“I expect it to be positive,” Anderson said, “Trump’s policies should be good for logistic and construction, and those are the two most important economic sectors in the Inland Empire. He should help manufacturing also, but that’s not as important here.”
Read the full article at IE Business Daily, January 27, 2025