Is Chinese Government Playing 'Tit for Tat'?

industrialuser — Thu, 04 Jun 2009 20:09:32 GMT

The Chinese government is suggesting that the U.S. is dumping steel?

china iron and steel production enterprises net losses 5.18 billion yuan

china-metal.net — Mon, 25 May 2009 09:25:51 GMT

China Iron and Steel Association (CISA) statistics released yesterday show that January to April this year, 72 large and medium-sized iron and steel production business situation continues to worsen, continue to expand industry-wide losses, net loss of 5.18 billion yuan, The first quarter loss of more than 30 billion, loss situation continue to deteriorate.
China Iron and Steel Association (CISA) Announced ,At the end of April, china steel market in the composite price index for 95.56, lower than the lowest November last year.
This situation, because the international market prices of steel products dropped sharply and the china market oversupply .From January to April, 72 large and medium sized iron and steel production enterprises net losses 5.18 billion yuan, of which April net losses 1.5 billion yuan,accounted for 40 percent loss, but in the first quarter, 72 large and medium-sized iron and steel manufacturing enterprises accounted for 34.72 percent loss.
The news comes from China Iron and Steel Association (CISA).
For further information please visit www.china-metal.net

The NAM/IndustryWeek Manufacturing Index

Tonya Vinas — Tue, 19 May 2009 14:36:07 GMT

Regarding the coverage of how pessimistic manufacturing executives are. I don't think it portrays the whole truth. My opinion is based on:

-- The outdated data. IW has written extensively about the acceleration of business and the economy due to globalization. This is one of the reasons why modern manufacturing companies invest extensively in getting real-time information on demand. Operations leaders are managing production based on daily or weekly demand, and their opinions of nearly three months ago are much less relevant than what is happening now. The U.S. government does more harm to the economy than good by releasing its data on inventories, job losses, etc., because that data also is outdated, yet it still causes extreme reactions in our world's capital markets, which right now are the most powerful force in global economics.

-- The limited survey pool. The NAM is a great organization, but its membership does not reflect all of U.S. manufacturing. In particular, its membership is weighted toward large, public companies, which tend to suffer the most in economic downturns. I suspect it also is skewed toward industries that are hurting the most, such as the auto and construction sectors.

-- Observation. IW seems to be doing what the general media is doing — painting a picture of manufacturing based largely on what is going on in U.S.-based auto companies and their supply chains. But these are just two companies, and IW has been writing about their antiquated practices for about a decade. The real story is that many, many manufacturing companies are investing in people and other assets in anticipation of growth. I just returned from the TWI (Training Within Industry) Summit in Ohio. Not only did the conference draw just as many participants as last year, but big manufacturers such as Northrop Grumman Shipbuilding, Addidas Group, OC Tanner and others attended to address training for anticipated growth and/or to fulfill current demand more efficiently. One large aerospace company sent about a dozen people. Additionally, the executive search firm Stiles Associates recently released a survey that points to continued investment in continuous improvement activities at manufacturers— these companies obviously are optimistic about the future. They are not laying off people; they are investing in current employees and planning on hiring more.

Frankly, I think the manufacturing sector is in a perfect position to dominate the U.S. -- and global -- economies once investors stop focusing on lack of credit and start focusing on value creation. When this happens, manufacturers will undoubtedly be leaders in terms of long-term profitability and performance as long as they stay true to value creation and continuous improvement. After all, the new mantra for business is doing more with less, and who knows how to do this better than manufacturers?

I urge you to report on <> of what is happening <> in manufacturing!

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Is Chinese Government Playing 'Tit for Tat'?

china iron and steel production enterprises net losses 5.18 billion yuan

The NAM/IndustryWeek Manufacturing Index