A tentative agreement reached between the U.S. and Canada would provide Canadian suppliers access to state and local public works projects under the American Recovery and Reinvestment Act of 2009. At the same time, US suppliers will now have access to provincial, territorial, and municipal supply contracts in Canada.
Originally, the Buy American provisions of the ARRA had mandated that all steel and manufactured goods purchased with the stimulus funds be made in the United States or in countries with U.S. agreements on government procurement. Local-level projects were also mostly confined to U.S.-made goods.
Canadian Officials contested these provisions, despite Canada’s exclusion of US suppliers from bidding on provincial and territorial supply contracts.
Guaranteed Reciprocal Access
According to the february 5, 2010 agreement, Ottawa will also provide U.S. suppliers with access to construction contracts across its provinces and territories, as well in as a number of municipalities – a breakthrough according to US officials.
“This administration made clear to Canada from the outset that any agreement to provide Canada with expanded access to U.S. procurement absolutely must provide guaranteed reciprocal access for US exporters to supply goods and services to Canada through provincial and territorial procurement contracts,” USTR Ron Kirk, the top U.S. trade official, said. “USTR has won that access for American firms, and I look forward to signing the agreement soon,” he said. “The value of new job-supporting contracts open to US firms will be tens of billions of dollars.”
Nice to see that win-win based on mutual respect and mutual opportunity can be the basis of trade. Trade doesn’t just have to be beggar thy neighbor.
Hey Kirk, how about taking that line of reasoning to Beijing?
Kirk Comments.
US Canada Joint Statement.
Infrastructure Photo Credit.
Capt. Kirk Photo credit.
Author: Miles Free
Keep these 6 Keys to Using Free Machining (12XX) Steels in mind:
- These steels are not generally sold for applications requiring high standards of strength, hardness or other related properties. Applications where vibratory, torsional or alternating stresses approach the grades’ static limits are NOT recommended.
- These steels are frequently case hardened or carburized in order to achieve desired surface hardness.
- When cold drawn, these steels can be notch sensitive. Highly polished fatigue specimens may achieve expected endurance values, but poor surface finish, tool marks, or sharp corners in the design may cause lower than expected performance.
- These grades have relatively low impact strength at reduced temperatures and should not be used for sub-zero impact applications.
- These steels are not recommended for applications where severe cold work follows machining. Crimping, staking and swaging may be performed, especially in non-renitrogenized grades. But severe crimping, cold metal movement, and bending may not be satisfactory in these grades.
- The addition of Lead or Bismuth does not alter the mechanical properties in tension. 12L14 and 1215 of same nominal size and process will be indistinguishable by hardness or tensile testing.
Free Machining Steels in the 12XX series- 12L14, 1215, etc., are selected in order to reduce the time needed to make large volumes of complex parts. This reduces the cost per part. The usual application is one where bulk and shape (mass and geometry) are the chief requirements. The factors that make these steels highly machinable also influence behavior of the products in service. Designers and engineers should keep the above 6 Keys in mind when considering the material for an application.
6Keys: Photo credit .
Guest Post by Peter Morici, professor at the Smith School of Business, University of Maryland,
and former Chief Economist at the U.S. International Trade Commission.
- American businesses need customers to create jobs and the statistics indicate domestic demand for what those enterprises make is growing at no more than a 2 percent annual pace.
- As the U.S. economy expands, the trade deficit will again drag the economy down,as the price of oil and purchases of Asian consumer goods and electronics rise.
- To recoup jobs lost during the Great Recession, growth must be in the range of 5 to 6 percent over the next three years.
- Unless the President addresses the trade deficit with China, he simply won’t accomplish 4 percent growth on a sustained basis, never mind 5 to 6 percent.
Since the Democrat’s debacle in Massachusetts, President Obama has been campaigning.
In the State of the Union address, his new budget and other staged events for the
faithful gather for hope, the President has the audacity to double down on class
warfare and crowd frenzying envy, and tout as success an economic recovery about
as thin as the Chicago Cubs World Series record book.
The economy is growing again but the President instead of divining new tax-the-rich
and spend policies should recognize the economic recovery simply won’t create enough
jobs to drive down unemployment, because his administration has not addressed the
trade deficit.
Instead of blaming George Bush and indulging in sparkling oratory, our constitutional
law professor and now president should seek a brief tutorial from White House economic
advisor Lawrence Summers on GDP, employment and international trade.
Fourth quarter GDP growth was 5.7 percent, but 60 percent of that was a slower pace
in depletion in business inventories. Businesses continued to sell more goods off
their shelves than they produced, but the reduction in inventories fell from $157
billion in the third quarter to $40 billion in the fourth.
In the arcane world of GDP accounting, that increased GDP by 3.4 percentage points-another
example of why most folks view economists as sorceresses dressed in academic robs
in lieu of the customary pointy hats and magic wands.
Domestic consumption and investment, which most define the sustainable pace of GDP
growth, contributed a paltry 1.8 to those 5.7 percentage points, and despite all
the bravado from the White House, government spending contributed zero, zilch,
nada!
With nearly $800 billion in stimulus spending and tax cuts, all Secretary Geithner’s
Treasury can manage is to take pails of water from the deep end of the swimming
pool to the shallow end.
American businesses need customers to create jobs and the statistic indicates domestic
demand for what those enterprises make is growing at no more than a 2 percent annual
pace. That anemic showing was in the second quarter of economic recovery. Ouch!
Exports did grow faster than imports in the fourth quarter, contributing 0.5 percent
to growth, but that was likely a temporary jolt made possible by the dollar’s dip
against the euro. Atlantic markets are not likely to drive U.S. demand up much more-they
are simply not growing very fast.
As the U.S. economy expands, the trade deficit will again drag the economy down,
as the price of oil and purchases of Asian consumer goods and electronics rise.
Unless, Obama finally finds the courage to confront China about its mercantilist
currency policies and protectionist tariffs and regulations against competitive
U.S. exports, the U.S. recovery will just not accomplish the growth necessary to
bring down unemployment.
An iron law of economics-if there such a thing beyond the comfortable confines of
college colloquiums-is that GDP growth must exceed the sum of potential labor force
growth and productivity growth to bring down unemployment.
In the United States that is between 3 and 4 percent. Labor force growth is determined
by the expansion of the adult population, and productivity growth by technology
advances.
To recoup jobs lost during the Great Recession, growth must be in the range of 5
to 6 percent over the next three years. That sounds ambitious, but remember, Chinese
growth has been pushing 10 percent by exporting more to the United States than importing.
Unless the President addresses the trade deficit with China, he simply won’t accomplish
4 percent growth on a sustained basis, never mind 5 to 6 percent.
Campaigning in Ohio or Baltimore or Timbuktu won’t do that for him, taxing the wealthy
won’t help, another bogus jobs package and more loans for small businesses won’t
accomplish much, and his constant cursing the shortcomings of Republican governments
past is getting tiresome.
Only coming back to Washington and getting to work a trade policy toward China will
save the economy and his Presidency from disaster.
Peter Morici is a professor at the Smith School of Business, University of Maryland,
and former Chief Economist at the U.S. International Trade Commission.
Peter Morici
Professor
Robert H. Smith School of Business
University of Maryland
College Park, MD 20742-1815
The prices of raw materials that we track rose substantially this year!
- Aluminum up 44% from Dec 2008.
- Copper up 112% from Dec 2008
- Nickel up 27% from Dec 2008
- Steel busheling up 35% from Dec 2008
- China coke up 60% from Dec 2008
We expect to see continued incidents of shortages, material unavailability, and skyrocketing surcharges and price increases until the supply lines are filled.
Here is link to PMPA’s Material Impacts Report for year end 2009.
Last year taught us 2 economics lessons:
- It doesn’t matter how many parts your machines can supply. Orders are based on DEMAND.
- Prices for raw materials inevitably go up when there is no SUPPLY available.
Remember those the next time your customer tells you they want a fixed price or a mandatory discount.
For more on Supply and Demand:
- Well, maybe the demand we’re talking about is a wee bit different…
OSHA’s Form 300A (Rev. 01/2004)
Summary of Work-Related Injuries and Illnesses
All establishments covered by Part 1904 must complete this summary page, even if no injuries or illnesses ocurred during the year. Remember to review the log to verify that entries are complete.
To get the form for free go to DOL site, here, click on the OSHA 300, 300A, and 301 forms link in the box on the right that is titled “Most Frequently Viewed OSHA Publications.”
Feeling lazy? Please read our prior posts on National Emphasis Program on Recordkeeping.
Guest post by Jeff Wiltsie, Vanamatic Company
It’s time for a reality check. Congress authorized the administration to spend hundreds of millions of dollars of stimulus to keep unemployment from reaching 8% which is now at 10%. The real unemployment rate is estimated to be as high as 17% when you include the people that have given up looking for work. The stimulus money has eluded the manufacturing sector which provides more economic activity per dollar than any other sector. Each job in the manufacturing sector supports as many as four other jobs. What’s wrong?
2010 Gross National Debt estimate – $14.456 Trillion
The debt is 98.1% of the United States GDP
China owns 5.5% of the debt – $798.9 Billion
Have you ever heard the comment, “It’s the economy stupid”? That statement was famous in 1992. Today’s statement should be, “The answer is manufacturing stupid”. Debt is piling up while manufacturing is declining. Remember, manufacturing provides more economic activity per dollar than any other sector. Unemployment is expected to exceed 10% in 2010 while manufacturing is declining. Remember, each manufacturing job supports as many as four other jobs.
Manufacturers continually improve productivity while reducing costs; this is good for the consumer! Congress and the Administration print more money and don’t worry about costs; this is NOT good for taxpayers. Manufacturers work with suppliers and customers to reduce or eliminate non-value added costs. Congress and the Administration inflate costs.
During President Obama’s 2010 State of the Union, he acknowledged the need to focus on getting people back to work. The President said, “Now, the true engine of job creation in this country will always be American businesses. But government can create the conditions necessary for businesses to expand and hire more workers” … “We should start where most new jobs do – in small businesses, companies that begin when an entrepreneur takes a chance on a dream, or a worker decides its time she became her own boss.”
Job creation is an area where Republicans and the administration can turn rhetoric into reality. Working together they can develop a response which will encourage job creation in the private sector. Virginia’s Bob McDonnell’s Republican response included, “We must enact policies that promote entrepreneurship and innovation so America can better compete with the world. What government should not do is pile on more taxation, regulation, and litigation that kill jobs and hurt the middle class.”
Building a reputation for quality, delivery, integrity and ethical behavior is of the utmost importance for long term business survival. Imagine an automotive executive speaking at a dealer conference, telling the dealers, “It’s vital to the survival of the company to promote and sell this new model. Building a new model is a daunting task, we don’t always get it right the first time but we can fix it after we get sales up.” This executive would be fired and the company sued for knowingly putting out a potentially unsafe vehicle.
Al Franken recently said, “Big pieces of legislation often need to be fixed and improved after passage. Health care would be no different.”[1] Building a reputation for quality, delivery, integrity, and ethical behavior should also apply to Congress and the Administration.
Congress and the Administration can learn a lot from manufacturers and help put more people back to work at a greater pace.
[1] http://www.minnpost.com/derekwallbank/2010/01/28/15403/franken_urges_house_to_pass_senate_health_bill_and_fix_it_later
Photocredit.
The World Trade Organization (WTO) established an expert panel January 19th to investigate and rule whether punitive U.S. tariffs on Chinese-made tires breach WTO regulations.
President Barack Obama approved punitive tariffs up to 35 percent on all car and light truck tires from China last September in an attempt to “remedy the clear disruption to the U.S. tire industry.”
The expert panel was established at a meeting of the WTO’s Dispute Settlement Body (DSB). China reiterated its position that the U.S. tariffs “run short of factual bases and breached the U.S. obligations under the WTO.”
“The Chinese government deeply regretted the U.S. decision to impose restrictions on Chinese tires and believed it was a departure of international consensus of G20 leaders to fight against protectionism,” the Chinese delegation said.
No word that the Chinese Government had any regret on currency manipulation.
The WTO expert panel usually consists of three members, and it takes up to 45 days for them to be appointed. The panel will need at least half a year to issue its final report.
Link
Photo credit.
“You can choose to organize to make decisions quickly. Or you can have the market ignore you.“- Seth Godin
Our industry knows that reducing cycle times (the time it takes an operating machine to make one part) on our machines helps it stay competitive.
In the last say 10 years or so, most of us figured out that reducing setup times (the time needed to tear down a machine and retool it to make the next product) is another critical piece of the stay competitive in brutal markets puzzle.
I was impressed with the story of Brandon Smith, who I read about on Seth Godin’s Blog. Brandon Smith took two hours to get this Help Haiti T-shirt to market.
Two hours!
Two hours from hearing of the devastation, to getting his shirt designed, prototype made, photographed, arrangements for manufacture, and sales materials up on the web.
Just two hours!
Now, I can hear you saying, “Miles, it’s only a T-shirt. He didn’t have to do contract review. He didn’t have to …”
No excuses! Want to know what best in class might be for time to market in our industry?
240 part numbers 90 days
As Seth Godin said in his blog “You can choose to organize to make decisions quickly. Or you can have the market ignore you.”
So while 2 hours might be a tad ambitious for some of us not in the T-shirt business, just how agile are you?
Do the people answering the phone or email at your company have the knowledge and the power to say “Yes” and make it happen right then and there? How long does it take your company to get to yes?
Is it longer than two hours?
If your people answering the phone or email at your company can get the answer right then and there and have the power to say “Yes,” I have 2 a questions.
Do your customers know?
More importantly, do your people know?
To purchase a help haiti t-shirt (part of proceeds is a donation).
Archie photo credit.
EMC Precision Machining, a fourth-generation, family-owned company that produces complex precision metal components for a diverse group of global customers, was a stop on President Barack Obama’s area tour today prior to his Town Hall Meeting at Lorain County Community College.
President Obama met with EMC Precision Machining CEO Jeffrey B. Ohlemacher and President Bradley R. Ohlemacher before touring the facility and meeting many of the company’s 44 full-time employees.
EMC is a 4th generation, 85 year young enterprise that has weathered the economic storm by continuing to invest in its people, systems, and assets, keeping its focus on the urgent machining needs of its customers.
Customers in industrial equipment, hydraulics, pneumatics, transportation, medical and aerospace and agricultural markets. EMC produce precision machined components that go into a wide range of applications, from putting glue on your cereal box, to critical hydraulics systems in helicopters.
We’re glad the president got to see first hand how people who make things, make things. We’re glad that the Ohlemachers and employees at EMC Precision Machining were able to connect with the president, and share how their experience with continuous education and training, staying up to date with the latest technologies and investing in priorities has kept them competitive despite difficult times.
Thats a message to take back to Washington.
More details on the presidents visit here. Here. And here.
More details on EMC Precision Machining.
The EMC Website.
Guest post by Peter Morici
Whoever is declared the winner, the outcome of the Massachusetts senatorial election is neither a mandate for President Obama’s liberal agenda nor a license for a return to status quo ante of George Bush.
The fact that a conservative put Ted Kennedy’s seat at play is a repudiation of Democrats recent partisan governing style, and an agenda that is simply out of step with the real change Americans want.
From health care to jobs to the banks, it’s time for Democrats to stop accusing critics of deceiving the public and to step back ask what voters will accept.
On health care, Americans don’t want a comprehensive federal takeover and higher taxes. To cover the uninsured, they would support reforms that make Medicaid and other federal programs for the poor much more cost efficient, and changes that lower prices and don’t more-severely ration access for middle class Americans already paying for health care.
A new health care bill should focus on lowering drug prices to those paid by health systems in other high income counties like Germany and Canada, ending the inefficiencies imposed by a mindless malpractice system other advanced countries don’t have, and aligning doctors pay and insurance company administrative costs with those in Europe.
Real reform should not require new taxes or higher premiums, but rather should lower the cost of health care-that’s the yardstick the president should use, not budget neutrality.
Regarding unemployment,
the president needs to acknowledge that the stimulus package will not deliver the four million jobs promised, and that fanciful dreams of replacing eight or nine million jobs over three years with new opportunities in green industries and smart buildings are just that-fanciful dreams.
The president may be right that American leadership in green industries is essential to American economic leadership in the future, but in the here and now, green industries will only provide one-tenth of the jobs needed, at best, to get unemployment down to acceptable levels.
Obama must tackle the trade deficit.
For many years to come, Americans will still use oil and buy traditional manufactured products like cars, computers and coffee makers. Unless Americans export more of those products, or import few of them, consumer spending cannot create enough demand for U.S. products to provide enough jobs for Americans.
Alternative energy is important but Americans will continue using fossil fuels for a long time. The United States has abundant, untapped offshore oil and huge on-shore natural gas. Developing those would raise taxes to reduce the federal deficit and create jobs in drilling, refining and supporting industries.
Don’t abandon new green technologies, but don’t forget that medium-term choice is between importing oil and borrowing from China to pay for it, or using what we have and becoming more self reliant.
China undervalues its currency to subsidize its products on U.S. store shelves, and keep out U.S. exports. It’s time to bite the bullet. Either China agrees to revalue the yuan to rebalance trade, or President Obama should tax the conversion of dollars into yuan to effect the same change.
Finally, the banks are not lending to worthy homeowners and businesses. Wall Street is again recklessly trading in derivatives and questionable securities, and paying huge bonuses. All of this accomplished with $1.5 trillion in near zero interest loans from the Federal Reserve-an amount much larger and more important than the TARP.
It’s time to separate real banks, who take deposits and make loans, and whose solvency the public must guarantee, from the casinos at Goldman Sachs and other financial houses of questionable ethical judgment.
Regulate the banks and their pay, and let the casinos pay executives what they like but don’t let them have access to the Federal Reserve or issue money market accounts or anything that looks like a bank account. Require those writing derivatives back those up with adequate funds to pay out potential losses and don’t let banks own securities.
There you have it-bank reform in less than 100 words, not 2000 pages.
If the President lived up to his promise and embraced such an agenda, the drug companies, insurance executives, doctors, tort lawyers, and bankers would make Washington lobbyists the richest people on the planet.
It would also leave aghast, Ivy League liberal and conservative economists, who alternate advising Washington, but they have given us enough bad advice.
It’s time the President the champion the folks that elected him. That’s the message of from Massachusetts.