So the USD lost to the Euro once again!

[Captain Virgil Hilts]

Originally posted by Mickey1992
GM used to make more profit financing cars than manufacturing them.  I never understood why they sold controlling interest in GMAC.

Because they wanted to avoid the disaster that is coming when all the sub prime mortgages default.

[tedrbr]

Buy Chinese products, as they are cheap.

The Housing bubble in the States seems to be bursting quiet nicely.

Vacation in the States.  I suppose all the Europeans that can afford to vacation in the States this year might offset the tourist industry loses from high fuel costs affecting American tourists in the States.  Remember to tip your waitress for dismal service (low employment effects quality of service).

[Reschke]

Originally posted by Maverick
So what US produced product were you not willing to buy before the Euro went up?

If you have a US based business, why don't you already know who produced the items in the US that you need in your business? Didn't you bother to look around before you sent money overseas? If you want to complain about outsourcing and having to spend money overseas to provide for your company, why didn't you start looking locally to begin with?

Until late last year the company I worked for was owned by a German individual who inherited the company from his father about 20 years ago. He has now sold out to another European owned organization that has several different holdings all over the world.

Now with that out of the way...For the last several years we have been forced to purchase all our materials from Germany. Now we are actually encouraged by the new ownership to make a profit. Forgive me for not going to indepth here but some things need to stay secret in my business. HOWEVER we are still limited in that there are no companies here in the United States, Mexico or Canada that are able to produce the type of steel that we need to have for concrete pumping pipeline systems.

Yes that seems odd since for many years the US was the place to go to get pipes of any and all sizes. Now if you want good quality steel pipes to use for various products in our industry you are screwed to be honest. So this past week I have been searching high and low for small steel companies for high chromium content steel castings and low carbon steel pipes that you can harden and bend into elbows. Unfortunately it goes back to the US wage structure that killed off the steel production here in Alabama many years ago. These products don't exist locally! The only thing we are able to find are the high chromium cast products but we can not find anyone who is willing to attempt to make the outer shells they go into due to the tolerances we need on the outer shell.

Now if I wanted to do this in low quality and if I wanted to be like my competition I would go to China and make it happen. BUT with Chinese steel you never know what you are going to get.

[ygsmilo]

Sounds like a good case for Risk Management.

Talk to your banker, he will be cheaper than me.

When you make forward sales of products or expect to make sales, lock in the exchange rate and lock in your margins.   Always think in margins, don't go cowboy on the situation, you will be more succesful in the long term.

If your banker will not or can not talk to you about hedging currency exposure then find someone who can, there are plenty of us out there.

(Risk Management Consultants)

Hey you wana play, you gotta pay !

[lazs2]

GM also makes a very large portion of its profit from home loans and refinance.  The market is slow right now.

lazs

[lasersailor184]

Originally posted by Gooss
If the USD is less expensive than the Euro, then US products are cheaper, right?

 You're looking for less expensive US products.  Wouldn't European companies like less expensive US products, too?  Isn't that foreign investment?  Selling more US products is a good thing, isn't it?

Increasing interest rates will make it more expensive for businesses to fund growth thereby reducing the competitive advantage over European products.  

The economy is booming now at virtually full employment.  

Wait...  Did I miss your sarcasm?

HONK!
Gooss

How dare you come into this thread with your economic knowledge.  THE OUTRAGE!

[Reschke]

Originally posted by Gooss
If the USD is less expensive than the Euro, then US products are cheaper, right?

 You're looking for less expensive US products.  Wouldn't European companies like less expensive US products, too?  Isn't that foreign investment?  Selling more US products is a good thing, isn't it?

Increasing interest rates will make it more expensive for businesses to fund growth thereby reducing the competitive advantage over European products.  

The economy is booming now at virtually full employment.  

Wait...  Did I miss your sarcasm?

HONK!
Gooss

Ahh but the employment rate is also what kills us here in Alabama. With just about every desirable employee in the Central part of the state working for an automobile manufacturer its very tough to find a welder for decent wages.

[Maverick]

Reschke,

My step son is a machinist working in an oil support machine shop fabricating anything and everything needed in the oil industry here in Louisiana. Some of the metals he works with are quite interesting and they work up to something like 40" diameter at times. Would you like me to ask if he has any idea where some of their more exotic material comes from?

[Reschke]

I will take all the help we can get. We use some pretty low carbon steel pipes that have an abrasive resistant rating after heat treatment of 65-68 HRc and the high chromium castings actually get harder the more you use them. All of this material is for pumping concrete from one point to another and needs to have a minimum working pressure of 85bar (roughly 1200psi).

[wasq]

I, as an European, and a citizen of an Euro currency country, just visited the US for about a week. I found the US to be exceptionally cheap for many items of trade.

Here's my take on current affairs.

I bought a lot of clothing, about 90% of them US brands, about 5% of total worth US produced. Most of the "US Brand" clothing ("Dockers", "Tommy Hilfiger", "DKNY", etc.), was made in either South East Asia or Africa.

I also bought a bit of high tech, namely a piece of optic excellence, made in Japan. Most profitable party of that transaction was probably the state of NY, due to the 8% non-deductible sales tax.

All in all, I think most of the "American" stuff is made overseas (Asia, Africa, etc.) and only the "Brand Management" stays in the US. That is a unfortunate (for the US manucfacturing business) reality of the world, today.

[lambo31]

Originally posted by Reschke
Ahh but the employment rate is also what kills us here in Alabama. With just about every desirable employee in the Central part of the state working for an automobile manufacturer its very tough to find a welder for decent wages.

Depends on what you consider decent wages. As a certified welder in various types of welding I get paid a little above average. But a stick welder or mig welder in the south usually gets around $14 an hour, with a halfway decent benifits package.



Lambo

[Reschke]

Lambo

Most certified welders we have intereviewed over here are getting somewhere close to $30 an hour at the three big auto manufacturing plants near our shop within 3 months on the job. We typically start a welder around $15 an hour but that is just to start. If you are looking for a job and willing to relocate give me a shout since we will be hiring at least one new position later this year.

[lambo31]

Thx Reschke, even though I would like to move back to Alabama my wife would kill me if I mentioned relocating  lol.

 That is generous pay even for a certified welder. I'm surprised the automobile manufactoring places pay so much, but I can see why my last vehicle cost so much. I make $27 an hour but only then if I'm welding tubes in a boiler. Most of the plant welders (mostly mig) in my area make about $18 an hour at top pay.  
 Have you tried talking to some of the local welding trade schools and see if thier graduates need a job? I've seen some slick welders come out of those schools.

Lambo

[Maverick]

Originally posted by Reschke
I will take all the help we can get. We use some pretty low carbon steel pipes that have an abrasive resistant rating after heat treatment of 65-68 HRc and the high chromium castings actually get harder the more you use them. All of this material is for pumping concrete from one point to another and needs to have a minimum working pressure of 85bar (roughly 1200psi).

Send me a pm with what you need and I'll pass it on to the step son. Maybe he knows something that will help. Is it just the elbows that are the problem areas or is it the entirre pipe?