Us manufacturing: How did Indiana power a revival?

For many Americans, there are two places that serve as symbols of the decline of US manufacturing: Detroit's hollowed out car plants, and vacant steel mills in Gary, Indiana.

For decades now, these two cities - and the surrounding states that collectively make up the "rust belt" - have been aching reminders of industry's decline, and of the devastating impact that outsourcing and globalisation wreaked on those living and working in manufacturing in the heart of the US.

Yet over the past five years, a curious thing has been happening in one of those rusty states: Indiana. The reality is that beyond Gary, manufacturing never really left Indiana - which first saw its fortunes rise during the turn of the 20th century, when the state's young men who had previously been subsistence farmers suddenly found themselves on hard times as agriculture became more mechanised.

Manufacturers recognised that Indiana had an able and willing workforce and set up across the state, building mostly small and medium factories that primarily served US car manufacturers.

Now, manufacturing makes up an astounding 30% of the state's economic output - compared to 12% of overall US gross domestic product (GDP) - and produces almost everything from cars and motor homes to pharmaceuticals and biomedical devices.

When indirect and induced jobs (that is, the retailers that choose to open up in a town to cater for manufacturing workers) are factored in, nearly two-thirds of the state's economic activity is due to manufacturing.

Industry participants express concern that a coming wave of retirements could impact the workforce, as nearly 40% of the state's current manufacturing employees are expected to retire in the next few years.

That's why politicians, companies, and local schools are investing in educating yet another wave of potential employees - to ensure that an industry that has powered the state since those agricultural days continues to provide an economic engine.

http://www.bbc.com/news/business-32925294, June 4^th, 2015

NOTES

“rust belt” - a slang term for a geographic region in the United States stretching from New York through the Midwest that was once involved in steel production and manufacturing – «ржавый пояс»

Useful terms and expressions

• to hollow out – опустошать

• vacant – пустой, бездействующий

• steel mill – сталелитейное предприятие

• devastating – разрушительный, губительный, катастрофический

• wreak – наносить урон, причинять ущерб

• fortunes – богатство, достаток, состояние

• subsistence – продовольствие, продукты питания; прожиточный минимум

• indirect jobs – рабочие места в смежных отраслях

• induced jobs – специально созданные рабочие места

• to cater for – обеспечивать, угождать, обслуживать

• to factor in – учитывать, принимать в расчет

TEXT 5

Translate the article into Russian orally.

China services sector key to growth

Banking, tutoring and healthcare are the holy grail both for China’s policymakers and its international investors. As Beijing looks to services to rev up slowing economic growth, private equity and others are buying into hospitals, English schools and consumer lenders.

Property sales and factory construction are slowing but people in China are eagerly availing themselves of healthcare, tutoring and movie tickets. Beijing’s slow-burning bid to rebalance the economy towards consumption has received a boost from services, which account for 51% of GDP, up from 44% in 2011.

The economy is on track for its weakest full-year growth in a quarter of a century. Without rapid expansion in financial services, education and healthcare, among other services, the overall slowdown would have been much worse.

While financial services moderated in the third quarter, overall services growth accelerated from 8.3% in the first half to 8.6% in the third quarter, well above the 6.9% growth of the broader economy.

The fastest growth came from “other” services, a broad category that includes healthcare, education, entertainment and culture, science and research, business services and utilities — fully 20% of the economy.

Foreign investors are betting the services growth story is real. Domestic companies are also positioning themselves to target the service sector.

Dalian Wanda Group, parent of China’s largest commercial property developer, is branching out into theme parks, online retail and financial services.

Services are also key to Beijing’s goal of reducing reliance on debt-fueled investment and generating more growth from consumption. Li-Gang Liu, China economist at Australia and New Zealand Bank, estimates that services account for about 30% of China’s consumer price index, which aims to reflect the typical consumer’s spending patterns. 

The Financial Times, December 6^th, 2015

NOTES

1. the Holy Grail – 1) the bowl believed to have been used by Jesus Christ at the Last Supper 2) any desired ambition or goal, something that is extremely difficult to find or get – Священный Грааль, обозначение какой-либо заветной цели, часто недостижимой или труднодостижимой

2. to be on track - making progress and likely to succeed – произойти с высокой степенью вероятности