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Metalworking (rec.crafts.metalworking) Discuss various aspects of working with metal, such as machining, welding, metal joining, screwing, casting, hardening/tempering, blacksmithing/forging, spinning and hammer work, sheet metal work. |
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#1
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What is the future of manufacturing?
As an older tool & die / mold maker I to have been thinking about this
very question. The orinaginal poster is in a racing shop, this is about as safe as one can get, as they need rapid turn over. Customer service will win over price / unit eveytime. In the case of large scale manufacturing the accountents have taken over, and a penny saved is a penny not spent. It does not seem to matter that the rework / rejects pile up just get the price per unit down!. I have had to rebuild many a china mold before it was ever shot, but they are getting better and they are buying the high speed maching centers faster then we are and they can press the green button just as well as you can. The ony saving grace the U.S.A. has is service, rapid turnover, and ingenuity. We often say to our selves I am going to do it my way. And sometime it works. They on the other hand are often told that they are going to do it the party way. If I was to start over as a young man I would still be a machinist, it is who I am. Ah hell... Thanks for letting me ramble. Scott |
#2
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What is the future of manufacturing?
I was just curious what you guys think about the future of
manufacturing in this country. You here alot of people say that there will be no future 10 or 20 years from now. I'm 27 years old and have been a machinist for 10 years,i was lucky to get a job in a big machine shop when i was a senior in high school and have been lucky to work with some of the old craftsman of the machining trade. I consider myself very lucky to have worked with the people that i have. I have been a machinist in Winston-cup racing since i was 18 so i am in a different industry than alot of you guys,buy if i ever was to decide to leave racing and work for a machine shop again i would like for it to be in an industry that wasn't on the way across the big pond. I would like to here from some of the shop owners on this as well. Are alot of the shops still struggling to get work,and if so which types of industries are the hardest hit. Which types do you think will be around for years to come. I love the machining trade alot,and would like to have my own shop someday(that's my dream anyway). Are there any of you all that own a shop doing parts for the racing industry or for custom bike,and car builders? If so how is that type of business doing,that is what i'm wanting to do maybe 10 years down the road. Thank you all for taking the time to read this and good luck to you all. |
#3
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What is the future of manufacturing?
If people don't quit buying the junk from across the pond we will all be
starving to death. Money talks and if people get back on the buy american plan things might improve. In all actuality I feel there are too many unfeeling and uncaring americans to ever bring things back to any level of manufacturing in this country. tim |
#4
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What is the future of manufacturing?
The general trend is against manufacturing in the USA. I was fortunate
enough to get a generous buyout package around the time when my telecom company decided to outsource their manufacturing. The company that they outsourced to promptly moved half the jobs to Mexico. The Bureau of Labor Statistics would have the numbers on manufacturing employment, but I am willing to bet that they are steadily down. I think that there will continue to be some manufacturing, especially limited production high-tech type of equipment, or any kind of custom equipment. (Like a stainless steel commercial kitchen, or a racecar). If I do go back to work in manufacturing, I figure that I may look for a liason job with one of the offshore or out of country manufacturing companies, taking advantage of the fact that I speak Spanish. I am sure that would not win me any friends among the buy American first crowd, as that would be going over to the other side. Sorry to be so pessimistic, but I see a steady multi-year trend. Maybe we will export software and Hollywood movies and import everything else. ;-). Maybe since we are in the post-industrial age, manufacturing is no longer as important as it used to be. I was always a manufacturing guy, my father worked in a manufacturing plant, and I never worked in any other environment. However, for me personally it has all worked out, as now I get to play with metal! Richard http://www.fergusonsculpture.com ROCKY HELMS wrote: I was just curious what you guys think about the future of manufacturing in this country. You here alot of people say that there will be no future 10 or 20 years from now. I'm 27 years old and have been a machinist for 10 years,i was lucky to get a job in a big machine shop when i was a senior in high school and have been lucky to work with some of the old craftsman of the machining trade. I consider myself very lucky to have worked with the people that i have. I have been a machinist in Winston-cup racing since i was 18 so i am in a different industry than alot of you guys,buy if i ever was to decide to leave racing and work for a machine shop again i would like for it to be in an industry that wasn't on the way across the big pond. I would like to here from some of the shop owners on this as well. Are alot of the shops still struggling to get work,and if so which types of industries are the hardest hit. Which types do you think will be around for years to come. I love the machining trade alot,and would like to have my own shop someday(that's my dream anyway). Are there any of you all that own a shop doing parts for the racing industry or for custom bike,and car builders? If so how is that type of business doing,that is what i'm wanting to do maybe 10 years down the road. Thank you all for taking the time to read this and good luck to you all. |
#6
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What is the future of manufacturing?
If you've got a job in racing, keep it, it's as immune to Chinese
competition as you're going to get. I don't blame poor Americans for buying cheap imports, it may be all they can afford. But for middle class and especially rich Americans, it's pretty callous.-Jitney |
#7
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What is the future of manufacturing?
Apart from the cost advantages of manufacturing offshore, especially
in Asia, there are other advantages. Manufacturing is an area filled with risk and aggravation. Liability, health and safety , staff training, specialist and expensive skills, etc. if you import rather than manufacture, then you miss out on all that and just have logistics and storage to worry about - which you would have had anyway. Warehouse staff are a lot easier to get and cheaper than toolmakers, diesetters, etc. Geoff |
#8
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What is the future of manufacturing?
"Vince Iorio" wrote in message ... I don't think buying "American" is the real problem, though it is an issue. The problem is the mind set of businesses (i.e. management). They have learned in some class room that any risk is bad, and "capital" is bad. They would rather get quotes from 3 suppliers and go with the low bidder. Which is sort of sad if you think about it because they are suppose to be a "supplier". I guess the real problem is that American business men do not know anything about manufacturing, therefore want to avoid it. They also don't know how to plan more then 1 year ahead. I am told that Bose (they make speakers and radios) are an example how manufacturing can work in this country. They have invested money into a factory that is highly automated, and located in a high cost labor area. They have designed there products to be "excellent" and to use as many common part between lines that make since. The result is a high quality, made in America product. (that I'm to cheap to buy, but that is besides the point). Just buying American will not solve the problem, Vince Not always. I just got back from Oshkosh and attended the seminars with Richard VanGrunsven on his RV aircraft. Afterwards I got to overhear some of the discussion on his manufacturing parts of his kit in the Phillipines. His problem is that if he gets simple sheet metal work done in the US, his kit is substantial more expensive than the competition and he goes out of business. So he is forced by market economics to go offshore. Quality is not a problem as he can make the Filipinos do the work to a standard. He doesn't do this due to greed and he isn't happy about it but he doesn't see that he has a choice. Steve. |
#9
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What is the future of manufacturing?
Hi
This is topic that I have been thinking about quite a bit lately. I design custom automated machines. In Southern Ontario where I live, I would say 90% of manufacturing is somehow tied to the auto industry. Although the Japanese car companies may assemble their cars in North America, their plants create much fewer spin off jobs due to the fact that most of the high value components such as the engine and transmission come complete from overseas. I can't blame the consumer for buying Japanese cars even though its damaging their own economy because the North American car industry does not even seem to be trying to compete in several important categories. If you want a small fuel efficient car that is not loaded with useless features you pretty well have to buy an import. If you want a car with a diesel engine VW is your only choice. Why can't Detroit design a small car that looks as good as an VW Jetta, why does the Toyota Matrix look cool while the Pontiac Vibe look like a dogs breakfast when they are pretty much the same car. Detroit is certainly not taking the long view when all they try to push is gas guzzling pickups and SUVs. stan |
#10
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What is the future of manufacturing?
In article , Stanley Baer wrote:
This is topic that I have been thinking about quite a bit lately. I design custom automated machines. In Southern Ontario where I live, I would say 90% of manufacturing is somehow tied to the auto industry. I also work with automated machinery in Southern Ontario, and while one of my most recent jobs was at Stackpole which is, indeed, automotive, I find that the majority of work for my particular niche is in pharmaceutical or aggregates. I would expect that it would depend on what your field is. I can't blame the consumer for buying Japanese cars even though its damaging their own economy because the North American car industry does not even seem to be trying to compete in several important categories. I drive a GMC Tracker. The Tracker that I drive was assembled at the CAMI plant in Ingersoll, Ontario. The vast majority of the parts were no doubt made in Japan, and I doubt that buying a GMC Tracker is fundamentally 'better' for the economy than buying a Suzuki Sidekick (same car), but it seems like buying domestic isn't that different than buying a locally-assembled foreign car. What with GM dropping made-in-China long-blocks into cars... is that really better? If you want a small fuel efficient car that is not loaded with useless features you pretty well have to buy an import. Agreed, they are missing some markets. I bought the Tracker because I wanted a SMALL SUV that was built the way they are, in my opinion, supposed to be built, with a full frame, two-speed transfer case, and solid axles. Good luck finding one, eh? If you want a car with a diesel engine VW is your only choice. Pretty much, yeah. Good thing they make good engines... are pretty much the same car. Detroit is certainly not taking the long view when all they try to push is gas guzzling pickups and SUVs. I heartily agree. Hummer 2? Geez. -- =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=- Mike Graham | Metalworker, rustic, part-time zealot. | http://www.metalmangler.com| Caledon, Ontario, Canada |
#11
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What is the future of manufacturing?
Just my 2 cents...The future for us will be in niche markets, innovations,
high service level. The pendulum always swings both ways although the cycle may be many decades. When will the third world be unionized, have vacations, BBQ's? When will the playing field be level? Free trade? How about FAIR trade? It will come but probably not in our life-time. I just hope our children aren't so dumbed-down and programmed that they miss it. |
#12
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What is the future of manufacturing?
Gunner writes: Ed Huntress on alt.machines.cnc is senior editor for Machining Magazine, and has written a series of articles on the subject, which are very worth reading. Here's one of them: http://www.machiningmagazine.com/China.pdf [This is from April. Are there URLs for the others?] Interesting quote from the article: "China pegs its yuan to the dollar at a fixed, official rate. The rate is artificially low by as much as 40% according to The US Senate Finance Committee. This gives them an edge in trade. The US and other developed countries want them to float their currency so it will rise, reflecting its real value. But Japan, Korea, and Taiwan, to cite just a few examples, also have artificially undervalued currencies, and they haven't done it by setting official rates. They maintain large currency reserves (China does, too) and they buy US Treasury securities when they can; both measures keep their currencies low, and their exports flowing out. There are many other tricks of the currency-devaluing trade and there's no assurance that simply floating China's currency will make a large dent in our trade balance." If I was young, and about to start a career, Id personally go into the medical field, Xray, etc etc etc. Our aging population makes this a growth industry, and the future is damned cloudy about machining/manufacturing..shrug. Our aging population can go to Mexico for medical treatment. Many of them can't afford medical treatment here, because their jobs were exported to China before they retired... |
#13
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What is the future of manufacturing?
If I was young, and about to start a career, Id personally go into the
medical field, Xray, etc etc etc. Our aging population makes this a growth industry, and the future is damned cloudy about machining/manufacturing..shrug. -Many insurance companies are sending X-rays over the wire to Indian radiologists who will diagnose and work for $30,000 vs. an American one that gets $300,000 over here. Much paperwork, such as medical billing, is going over there too. Maybe victory gardens will keep us alive...but wait, most homeowner associations (private democracy, er... Stalinism) prohibit such subversive activity.-Jitney |
#14
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What is the future of manufacturing?
"SRF" wrote in message
.com... "Vince Iorio" wrote in message ... I don't think buying "American" is the real problem, though it is an issue. The problem is the mind set of businesses (i.e. management). They have learned in some class room that any risk is bad, and "capital" is bad. They would rather get quotes from 3 suppliers and go with the low bidder. Which is sort of sad if you think about it because they are suppose to be a "supplier". I guess the real problem is that American business men do not know anything about manufacturing, therefore want to avoid it. They also don't know how to plan more then 1 year ahead. I am told that Bose (they make speakers and radios) are an example how manufacturing can work in this country. They have invested money into a factory that is highly automated, and located in a high cost labor area. They have designed there products to be "excellent" and to use as many common part between lines that make since. The result is a high quality, made in America product. (that I'm to cheap to buy, but that is besides the point). Just buying American will not solve the problem, Vince Not always. I just got back from Oshkosh and attended the seminars with Richard VanGrunsven on his RV aircraft. Afterwards I got to overhear some of the discussion on his manufacturing parts of his kit in the Phillipines. His problem is that if he gets simple sheet metal work done in the US, his kit is substantial more expensive than the competition and he goes out of business. So he is forced by market economics to go offshore. Quality is not a problem as he can make the Filipinos do the work to a standard. He doesn't do this due to greed and he isn't happy about it but he doesn't see that he has a choice. Steve. As long as we pursue our present trade policies, few manufacturers have a choice. They're locked into a free-trade dogma that says we're just reeds in the current of inevitable trends. It all sounds a lot like Karl Marx and his historic inevitability, only this time the idea that our economic fate is sealed and inescapable is being promoted by multinational corporations and our own government. As I write this I'm listening to Commerce Secretary Don Evans on C-Span talking about how many opportunities China's market is providing for us. After interviewing a number of people in government on this subject over the past few months, my feeling is that they're all utterly clueless -- or they don't care that U.S. manufacturing is taking a beating. I believe it's some of both. Ed Huntress |
#15
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What is the future of manufacturing?
"Ron Bean" wrote in message
... Gunner writes: Ed Huntress on alt.machines.cnc is senior editor for Machining Magazine, and has written a series of articles on the subject, which are very worth reading. Here's one of them: http://www.machiningmagazine.com/China.pdf [This is from April. Are there URLs for the others?] We've published two, and both are now accessible from www.machiningmagazine.com. The third one is being written. -- Ed Huntress (remove "3" from email address for email reply) |
#16
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What is the future of manufacturing?
"Ed Huntress" writes: Here's one of them: http://www.machiningmagazine.com/China.pdf We've published two, and both are now accessible from www.machiningmagazine.com. The third one is being written. OK, I see the links now. The other one is at: http://www.machiningmagazine.com/ToughQuestions.pdf As I write this I'm listening to Commerce Secretary Don Evans on C-Span talking about how many opportunities China's market is providing for us. Those opportunities seem to be more ideological than real. Several people have suggested linking imports to exports, dollar for dollar. It would be difficult to enforce, and certain special interests would scream bloody murder, but I think they'd actually pick up more domestic business than they'd lose in foreign business. Every country in the world wants to export more than they import, but that's not a realistic expectation. |
#17
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What is the future of manufacturing?
Yes, The Peg. Funny how no one in Congress complained about that peg
when it changed from 5.0 yuan to 8.2 in the early/mid nineties. Maybe because Our currency was lower at the time. since then, the dollar has surged and now looks at the Chinese RMB as being the evil culprit. China can float their currency, but does anyone expect them to do so for anyone elses benefit or for their own? Lets be realistic. We dont change our currency for South America's benefit, now do we? (we just bail them out with loans). The Chinese RMB if floated would more than likely appreciate against most major currencies in the near term. But there are many parts of the Chinese economy that is not ready to assure a solid footing. Case in point is the banks. They have a huge percent of non performing loans. This could easily lead to a crash in their currency far worse than what we see now. it has only happened Time and time again all over the world these past 15 or so years. If you read their economists views, they are trying to be cautious. Both Taiwan and Hong Kong also peg to the US dollar. This was done out of a need for stability. If HongKong removed the peg today, their currency would probably devalue.Taiwan Just might also, since so much of their mfg is moving to the mainland. The answer to the original post is "innovation". Should we innovate, we will survive. If we do not,most of our mfg will perish. What is the logic in having toothpicks made in the USA. Many of you will agree that there is no such logic. Well, why should it stop at toothpicks? Lets face it, even satellite manufacturers are all having their systems built and launched in China. If they can build satellites cheaper, what makes anyone think they cant do automotive, machine tools, or anything else between toothpicks and Satellites? One amusing thing about the satellite issue was the blame in the USA was actually put on Clinton in the 90's for giving satellite technology to China. It wasnt Clinton, It was Loral, Boeing and all the rest who needed China to be competitive. They freely gave this information to the Chinese and even lobbied for the right to do so. A few were even fined by Uncle Sam in later years for "giving too much". It is comical. These companies were desperate and still are for that matter. If we do not innovate, the USA mfg environment will be relegated to small niche markets, and products of conveience. For example, items that are big and heavy, with little dollar value, will cost too much to ship by containers, so they can make them in Mexico or here in the USA. Items that need JIT delivery schedules within a weeks time will also have a good chance to stay. But the best way for us to "break out" of this cycle is to innovate. we did it with IT in the 90's. Now we just need to find that next engine of growth and innovate. I would nominate energy as being the best all around possibility, with the greatest potential. Cheap energy independence would affect every single industry in the country and the world. Only we would be the masters of a a new technology. The possibilities are limitless. Now would you like to donate 500 billion to my cause? Best spent 1/2 trill you ever saw. (Ron Bean) wrote in message ... Gunner writes: Ed Huntress on alt.machines.cnc is senior editor for Machining Magazine, and has written a series of articles on the subject, which are very worth reading. Here's one of them: http://www.machiningmagazine.com/China.pdf [This is from April. Are there URLs for the others?] Interesting quote from the article: "China pegs its yuan to the dollar at a fixed, official rate. The rate is artificially low by as much as 40% according to The US Senate Finance Committee. This gives them an edge in trade. The US and other developed countries want them to float their currency so it will rise, reflecting its real value. But Japan, Korea, and Taiwan, to cite just a few examples, also have artificially undervalued currencies, and they haven't done it by setting official rates. They maintain large currency reserves (China does, too) and they buy US Treasury securities when they can; both measures keep their currencies low, and their exports flowing out. There are many other tricks of the currency-devaluing trade and there's no assurance that simply floating China's currency will make a large dent in our trade balance." If I was young, and about to start a career, Id personally go into the medical field, Xray, etc etc etc. Our aging population makes this a growth industry, and the future is damned cloudy about machining/manufacturing..shrug. Our aging population can go to Mexico for medical treatment. Many of them can't afford medical treatment here, because their jobs were exported to China before they retired... |
#18
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What is the future of manufacturing?
On Mon, 04 Aug 2003 05:04:12 GMT, Gunner
wrote: Please God, let there be another manufacturing boom, so I can make a bit to put aside, and when I retire, not have to make the choice between Kibbles N Bits and macaroni and cheese, and to LET me retire, and not die on the job. It's likely a lot of us will never retire. The US unions that haven't bargained away their jobs have secured some pretty impressive retirement packages- that you and I get to pay for. Something like $400 of every new Chrysler vehicle sold goes to paying retirement benefits. Ford and GM price out at about $200 per vehicle. Railroad benefits border on the obscene, as do older airlines. Union truckers do pretty darn good, too. Please God, when I die on the job, let me fall into a chipper and leave one hell of a gory mess for someone to clean up. -Carl |
#19
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What is the future of manufacturing?
Things will get much, much worse and then they will get even worse.
Mass production will cease to exist in the United States. Due to high speed global communications and transportation social darwinism will accelerate. Human beings, like any organism, are driven to survive and reproduce. Survival may mean working for a pittance as in many third-world countries or, for those fortunate enough, working with technology and making somewhat more than a laborer. Reproduction means there will be even more people competing for resources and someone to do your job for lower pay. The only guaranteed method of economic sucess is to exploit other people. I point to Enron, Worldcom, and Aurthur Anderson as examples. Even Bill Gates has his share of skeletons. And if anyone thinks that economic considerations did not play a major role in the U.S.A.s recent foreign adventuring, I have some nice beachfront property in Nevada to sell you. |
#20
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What is the future of manufacturing?
On Tue, 05 Aug 2003 02:54:03 -0000, Akston wrote:
And if anyone thinks that economic considerations did not play a major role in the U.S.A.s recent foreign adventuring, I have some nice beachfront property in Nevada to sell you. It is worth noting that Rome was not a great manufacturing power, but they did rule the known world. That position brought the citizens of Rome great wealth by controlling the flow of natural resources and the delivery of goods and services. Gary |
#21
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What is the future of manufacturing?
"Ron Bean" wrote in message
... "Ed Huntress" writes: Here's one of them: http://www.machiningmagazine.com/China.pdf We've published two, and both are now accessible from www.machiningmagazine.com. The third one is being written. OK, I see the links now. The other one is at: http://www.machiningmagazine.com/ToughQuestions.pdf As I write this I'm listening to Commerce Secretary Don Evans on C-Span talking about how many opportunities China's market is providing for us. Those opportunities seem to be more ideological than real. Several people have suggested linking imports to exports, dollar for dollar. It would be difficult to enforce, and certain special interests would scream bloody murder, but I think they'd actually pick up more domestic business than they'd lose in foreign business. Every country in the world wants to export more than they import, but that's not a realistic expectation. I hesitate to stir this hash up, because it gets complicated in a hurry, but some countries don't want to export more than they import. The U.S., for example. Our policies are not oriented toward running a "positive" trade balance. And that's by design. The trouble with our trade policy is not trade deficits per se, but (IMO) overwhelming "surges" of trade deficits. In fact, we haven't had the kind of big surges yet that worry me. What worries me is the surges we're likely to face in the next five to ten years. For example, Ford is now importing $1B worth of car parts from China. In 2010, they plan to import $10B worth. GM is now importing roughly $2.1B from China. In 2007, they plan to import $20B worth. That's real money, and that's enough outsourcing to kill a lot of companies in our automotive supply chain. Nobody has ever seen a surge like that in modern times. I don't think we can survive it without a hell of a lot of dam age to our employment structure and to our economy as a whole. The current administration is betting on the idea that cutting taxes will stimulate enough business and job creation to make up the difference. On paper, it probably works out. In practice, I'm afraid that the job creation they have in mind is a generalized abstraction, and that they have no specific ideas about where these jobs will come from. They have a '50s mentality and a '50s-type of blind faith in "innovation" and "growth." They appear to think these jobs spring up by magic. Optimism is a powerful force but it can also be a dangerous delusion. I can't picture the displaced tool & die makers in this country being re-trained for jobs in currency exchange and stock brokerage. There are big issues involved that are over the heads of most of us. One is the ability of currency-value adjustments to overcome fixed exchange rates. Another is the real value of our exports of financial services. There are many other financial issues that require more expertise than most of us have. Anyway, keep reading _Machining_. We won't wimp out on these difficult issues, but we aren't going to explain the world economy or solve it in a couple of articles, either. g Ed Huntress |
#22
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What is the future of manufacturing?
Carl Byrns wrote:
It's likely a lot of us will never retire. Please God, when I die on the job, let me fall into a chipper and leave one hell of a gory mess for someone to clean up. That's a bit sad - I hope you haven't got any friends and family! I'm a software developer by day, metalwork is something I'm studying as a hobby, but I'm also planning on getting good at it over the next few decades so that when I retire I can try to supplement my income by making pretty and/or useful things to sell at craft fairs! -Carl ABS |
#23
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What is the future of manufacturing?
I'm in the same situation that your in, and I think about this all the
time. I'm 25 and have been in the trade now for 6 years. I doubt the company where I work at now will be in the business in 5 years. The company is basically an assembly plant and they pay very low wages to their employees. I believe it's just a matter of time before they pack up and head east. Nevertheless, I'm going to tough it out here as long as I can. But in the mean time, I'm also going to college to learn something else. Like others have said, you have a good job in racing. If you like it, then I'd probably stay there. I'd work all the overtime I could and save my money for the future. I don't know if this was mentioned already, but I was reading in a magazine about something called micro machining. It involves making tiny parts with very small cutting tools. The article went on to mention that this may be a successful field for a machinist to pursue. It may be something to consider. Here's a question to the group: What if there was a war in the China region and they were unable to make or deliver products for their customers(the world). Do you think this would bring back some manufacturing to the US? Jody |
#24
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What is the future of manufacturing?
"bg" wrote in message
om... But the best way for us to "break out" of this cycle is to innovate. we did it with IT in the 90's. Now we just need to find that next engine of growth and innovate. I would nominate energy as being the best all around possibility, with the greatest potential. Cheap energy independence would affect every single industry in the country and the world. Only we would be the masters of a a new technology. The possibilities are limitless. And what if another IT doesn't come along? And why would we have an exclusive on new energy technology? Technology has become a commodity on world markets. IT may be the last big example in which one county had an edge. The reason we had an edge in IT for so long is that Europe made a big mistake, protecting their emerging IT market with quotas. And Japan made another mistake, with "industrial planning," putting huge government support behind particular chip technologies, which quickly became obsolete. China and India have learned from those mistakes of others and are not likely to make them again. One US tool company manager who traveled to China early this year was struck by seeing more advanced EDMs and molding presses on plant floors than the ones that are used by US industry. The linear-motor Sodicks and long rows of German presses knocked him out. The Chinese can implement new technology fast enough to make your head spin. And U.S. companies that invest there tend to put in better technology than that which they have in their North American plants. Shanghai-GM's new engine line, which is now starting to make the complete engines for the 2004 Chevy Equinox SUV (to be installed in Canada, and then shipped to the US), probably is the most advanced engine manufacturing line in the world. It's hard to imagine an innovation on which we would have an exclusive for very long. -- Ed Huntress (remove "3" from email address for email reply) |
#25
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What is the future of manufacturing?
"Ed Huntress" wrote in message . net... "bg" wrote in message om... But the best way for us to "break out" of this cycle is to innovate. we did it with IT in the 90's. Now we just need to find that next engine of growth and innovate. I would nominate energy as being the best all around possibility, with the greatest potential. Cheap energy independence would affect every single industry in the country and the world. Only we would be the masters of a a new technology. The possibilities are limitless. And what if another IT doesn't come along? And why would we have an exclusive on new energy technology? That is always the question! What will we do if we cannot make buggy whips? There is no guarantee that we will have a lock on any new technology. What can give us the edge is to have a society that is receptive to change. The attitude that we must protect industries where we were successful is fatal. Japan is no better example. New technology favors no one. The ones that will win are those that are willing to embrace it. Technology has become a commodity on world markets. IT may be the last big example in which one county had an edge. The reason we had an edge in IT for so long is that Europe made a big mistake, protecting their emerging IT market with quotas. And Japan made another mistake, with "industrial planning," putting huge government support behind particular chip technologies, which quickly became obsolete. Technology is not a commodity. Existing technologies become commodities. How can new technologies be commodities? We don't even know what they are. China and India have learned from those mistakes of others and are not likely to make them again. We don't know if China and India have learned from other's mistakes, they have not had the opportunity to make their own mistakes. Only time will tell. Who would have thought that Japan would self-distruct? One US tool company manager who traveled to China early this year was struck by seeing more advanced EDMs and molding presses on plant floors than the ones that are used by US industry. The linear-motor Sodicks and long rows of German presses knocked him out. The Chinese can implement new technology fast enough to make your head spin. And U.S. companies that invest there tend to put in better technology than that which they have in their North American plants. Shanghai-GM's new engine line, which is now starting to make the complete engines for the 2004 Chevy Equinox SUV (to be installed in Canada, and then shipped to the US), probably is the most advanced engine manufacturing line in the world. It's hard to imagine an innovation on which we would have an exclusive for very long. No one is given a free ride. It is very damaging to expect one. If we concentrate on using governmental protection for industries where we have had past success, we will surely miss the boat for the next new thing. Indeed, the "next new thing" has been our savior many times in the past. What gives people weak knees it that it is awfully hard to see where the next one is coming from. Perhaps it is useful to have these arguments because we get delayed in doing anything too damaging. -- Ed Huntress (remove "3" from email address for email reply) None of these arguments are new. I just hope that we don't follow the protectionist course, it will surely be our doom. Pete. |
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What is the future of manufacturing?
In article , Carl says...
It's likely a lot of us will never retire. You got that right. I think I'm gonna probably be working forever. At one time the average length of time that my company paid out retirement benefits was measured in 'months' units. Much less than a year. Jim ================================================== please reply to: JRR(zero) at yktvmv (dot) vnet (dot) ibm (dot) com ================================================== |
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What is the future of manufacturing?
It's likely a lot of us will never retire. You got that right. I think I'm gonna probably be working forever. At one time the average length of time that my company paid out retirement benefits was measured in 'months' units. Much less than a year. Of course, there is always the very good possibility that you will be given your freedom involuntarily. My former company had three employees over 60. Mysteriously, all of us were liberated during the last downsizing. All of were ready to leave, just didn't like someone else making the decision. Fortunately, I was prepared and could retire without trauma. Earle Rich Mont Vernon, NH |
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What is the future of manufacturing?
"Peter Reilley" wrote in message
... "Ed Huntress" wrote in message . net... "bg" wrote in message om... But the best way for us to "break out" of this cycle is to innovate. we did it with IT in the 90's. Now we just need to find that next engine of growth and innovate. I would nominate energy as being the best all around possibility, with the greatest potential. Cheap energy independence would affect every single industry in the country and the world. Only we would be the masters of a a new technology. The possibilities are limitless. And what if another IT doesn't come along? And why would we have an exclusive on new energy technology? That is always the question! What will we do if we cannot make buggy whips? There is no guarantee that we will have a lock on any new technology. What can give us the edge is to have a society that is receptive to change. And what would you like to change to? Our edge now is in financial innovation. Are you ready to re-train to become an arbitrageur? g Our receptiveness to change doesn't seem to be doing much for manufacturing. If you take a very broad view, and consider "change" to be any economic activity that responds to opportunities in the markets, you probably have a point. But that generally means change *away from* implementing manufacturing capability in the United States. If you happened to read my first article on the subject, "The China Conundrum," you noticed that I broke economic interests in manufacturing into six categories. The people in the top categories think that things are just fine. Those are the people who have no personal interest in keeping manufacturing in the US from going to pot. The people in the bottom categories are people like you, me, and nearly everyone else involved directly with manufacturing. The attitude that we must protect industries where we were successful is fatal. Japan is no better example. Japan is an example of something, but the problems that stem from protecting industries probably isn't it. That was a source of trouble but probably not the trouble that's put them into the financial bind they're in now. New technology favors no one. The ones that will win are those that are willing to embrace it. The Chinese are embracing it big-time. Or, we should say, the foreign multinationals who are investing in China's manufacturing are embracing it big-time. Technology has become a commodity on world markets. IT may be the last big example in which one county had an edge. The reason we had an edge in IT for so long is that Europe made a big mistake, protecting their emerging IT market with quotas. And Japan made another mistake, with "industrial planning," putting huge government support behind particular chip technologies, which quickly became obsolete. Technology is not a commodity. Existing technologies become commodities. How can new technologies be commodities? We don't even know what they are. They're commodities because the multinationals that invest in their implementation can now do so anywhere they choose. And where they choose is the countries with the lowest wages and with sufficient infrastructure to function. China and India have learned from those mistakes of others and are not likely to make them again. We don't know if China and India have learned from other's mistakes, they have not had the opportunity to make their own mistakes. Oh, yes, they've already avoided many of Japan's mistakes. They're making some of their own, and some of them look larger than the mistakes the Japanese made. It's quite right that we don't know yet what the long term outcome will be. In the meantime, though, how long are you willing to hold your breath to find out? China is ten times larger than Japan, with many times the manufacturing capability and with a FAR heavier weight of unemployment and underemployed peasantry that are holding wages down. They probably will be able to undercut us in manufacturing costs for at least another two to three decades. Unlike Japan, they have the full assistance and compliance of the world's largest corporations in doing so. They aren't competing with Motorola, Ford, and General Motors. The competition coming from China IS Motorola, Ford, and General Motors. And China's manufacturing isn't the only example of the new reality we're facing. There's also India, which is now able to perform many of our financial and computer services perfectly well from halfway around the world, in the blink of an eye. That's innovation for you, eh? Only time will tell. Who would have thought that Japan would self-distruct? Some economists, as far back as 1980, realized that their industrial policy was going to cause them trouble if they didn't drop it when it got in the way. But many of those people thought the Japanese were smart enough and quick enough to recognize it, and that they'd get rid of it when the time was right. In general, those economists had the right idea, but the problem cropped up in a different place than many thought it would. Some say the Japanese lost their edge when they succumbed to world pressure to let the yet float upward in value. Most believe, however, that the problem stemmed from the same cultural factors that led them to follow the authority of MITI and their penchant for respecting authority without question. The result was a financial system they couldn't fix because they couldn't acknowledge the enormity of their mistakes. They couldn't fix their problems fast enough, and they piled up. One US tool company manager who traveled to China early this year was struck by seeing more advanced EDMs and molding presses on plant floors than the ones that are used by US industry. The linear-motor Sodicks and long rows of German presses knocked him out. The Chinese can implement new technology fast enough to make your head spin. And U.S. companies that invest there tend to put in better technology than that which they have in their North American plants. Shanghai-GM's new engine line, which is now starting to make the complete engines for the 2004 Chevy Equinox SUV (to be installed in Canada, and then shipped to the US), probably is the most advanced engine manufacturing line in the world. It's hard to imagine an innovation on which we would have an exclusive for very long. No one is given a free ride. It is very damaging to expect one. If we concentrate on using governmental protection for industries where we have had past success, we will surely miss the boat for the next new thing. Indeed, the "next new thing" has been our savior many times in the past. I recognize your feeling here, Pete, but I believe your faith in "the next new thing" is misplaced. The point is that the next new thing is unlikely to be ours, or anyone else's, salvation. Technology doesn't take a decade to cross borders today. It doesn't take a few years. In fact, you may find, as in the case of the new Shanghai-GM engine line, it winds up being implemented in the low-wage country before it's implemented in the country that invented it. That's because we've been so successful in breaking down the barriers to capital flow. The multinationals have gotten what they really wanted most of all: the ability to implement new technologies anywhere they want to, wherever the wages and other costs are lowest. And what they don't own, they'll buy from the low-wage countries. What gives people weak knees it that it is awfully hard to see where the next one is coming from. What makes some of us cautious is the recognition that we're relying on yesterday's solutions to a new kind of problem, one that we've never seen before. Perhaps it is useful to have these arguments because we get delayed in doing anything too damaging. The arguments have to be made to Congress and the administration. Our trade policies have to be based on a fuller recognition of what's happening in manufacturing. And we have to be more transparent about our trade policies. If you read the policy journals, such as _Foreign Affairs_, you get the feeling that the whole trade agenda is something that's being cooked up behind closed doors, with no public access to the real planning or negotiations. None of these arguments are new. I just hope that we don't follow the protectionist course, it will surely be our doom. The traditional forms of protectionism, which are punitive tariffs and quotas, subsidies, and non-trade exclusionary barriers, are usually a bad thing, based on their history. Not always, but usually. Trade barriers helped Japan wrench itself from peasantry to world manufacturing dominance in less than 30 years, so you have to be cautious when you impugn protectionism as an absolute. However, we do need something more than relying on blind faith in "innovation." If you read the assertions of our Commerce Dept., you realize that, if they believe what they're saying, they're off in the ozone somewhere, paying attention to the things that they like and ignoring the things they don't. And I do believe that they believe what they're saying. Our US Trade Representative is another matter. The people who are making policy at that level are smart, subtle, and sophisticated. But they have an agenda that isn't well understood by most of us. For example, after decades of pushing for a unified world market through the WTO, they've now broken ranks with most of the developed world and they're pursuing regional trade blocks, such as NAFTA, and bilateral trade deals. It's all based on an agenda that we don't fully understand, because they don't talk very openly about it. We'll be writing more about it in _Machining_. Stay tuned. -- Ed Huntress (remove "3" from email address for email reply) |
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What is the future of manufacturing?
Ed,
I am inclined to agree with Peter on this one. There are a few ways that we can try our best to protect the technology, but of course people will come up with variations to that technology and any real permanent protection will be futile. This is a concern, but only because of the initial investment. The end result would be independent access to greater sources of energy. Imagine being free from the use and expense of oil to a great degree! Further, judging from the size of the project needed to accomplish this, it would take years for anyone to come up with duplicate technologies and near as much investment. This is really just my case for what the next "engine of growth" should be. I dont think we could see any greater gains from any other industry. But I am not selfish, I will take anything, ok? In regards to the factories in China. I know, I visit every year. You are absolutely correct about the modern equipment in many facilities. The USA mould industry is all but wiped out. Not just because the Southern Chinese do it chepaer, but they also have more advanced equipment. This is mirrored all over the country in many industries. But we have to keep thinking positive, while realizing the negative. We need better research, better funding in the right places. Better focus. Bush proposed a $1 billion investment in new energy technology. It is a drop in the bucket. Oilmen were laughing all the way to the bank, ****ing in their pants. $1 billion is a joke. We need continuous investment and research on a similar level as the manhattan project. There is nothing we cant do, if we set our minds to it. "Ed Huntress" wrote in message .net... "bg" wrote in message om... But the best way for us to "break out" of this cycle is to innovate. we did it with IT in the 90's. Now we just need to find that next engine of growth and innovate. I would nominate energy as being the best all around possibility, with the greatest potential. Cheap energy independence would affect every single industry in the country and the world. Only we would be the masters of a a new technology. The possibilities are limitless. And what if another IT doesn't come along? And why would we have an exclusive on new energy technology? Technology has become a commodity on world markets. IT may be the last big example in which one county had an edge. The reason we had an edge in IT for so long is that Europe made a big mistake, protecting their emerging IT market with quotas. And Japan made another mistake, with "industrial planning," putting huge government support behind particular chip technologies, which quickly became obsolete. China and India have learned from those mistakes of others and are not likely to make them again. One US tool company manager who traveled to China early this year was struck by seeing more advanced EDMs and molding presses on plant floors than the ones that are used by US industry. The linear-motor Sodicks and long rows of German presses knocked him out. The Chinese can implement new technology fast enough to make your head spin. And U.S. companies that invest there tend to put in better technology than that which they have in their North American plants. Shanghai-GM's new engine line, which is now starting to make the complete engines for the 2004 Chevy Equinox SUV (to be installed in Canada, and then shipped to the US), probably is the most advanced engine manufacturing line in the world. It's hard to imagine an innovation on which we would have an exclusive for very long. |
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What is the future of manufacturing?
"Ed Huntress" writes: I hesitate to stir this hash up, because it gets complicated in a hurry... I understand, but I'm not sure we have a choice. This may not be the right forum for it, but I also need to find a new career, and so far I haven't heard of one that's not scheduled to shrink. (I'm open to suggestions.) It's a little hard to tell because of where we are in the business cycle-- right now *every* business has too many people in it, but that will change in the short run. I'm more concerned about retraining for a new career and then having it drop out from under me (as happened to many people in the IT business). some countries don't want to export more than they import. The U.S., for example. I'm not aware of any others. And I don't see how it's sustainable (in terms of dollars, not necessarily manufactured goods). We've minimized the effects via inflation in the past. The trouble with our trade policy is not trade deficits per se, but (IMO) overwhelming "surges" of trade deficits. Nobody has ever seen a surge like that in modern times. I don't think we can survive it without a hell of a lo of dam age to our employment structure and to our economy as a whole. That's what happened to the farm economy in the 1920s, when there was a huge jump in productivity. Most of those people found other jobs-- *ten years later*. In practice, I'm afraid that the job creation they have in mind is a generalized abstraction, and that they have no specific ideas about where these jobs will come from. In theory, they're not supposed to-- it "just happens". The hole in the theory is that we're supposed to be able to live off our savings until the new jobs appear, no matter how long that takes. There are big issues involved that are over the heads of most of us. I'm not sure we have a choice about it. |
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What is the future of manufacturing?
On Tue, 05 Aug 2003 03:39:37 -0400, Gary R Coffman
wrote: On Tue, 05 Aug 2003 02:54:03 -0000, Akston wrote: And if anyone thinks that economic considerations did not play a major role in the U.S.A.s recent foreign adventuring, I have some nice beachfront property in Nevada to sell you. It is worth noting that Rome was not a great manufacturing power, but they did rule the known world. That position brought the citizens of Rome great wealth by controlling the flow of natural resources and the delivery of goods and services. Gary Right, but we seem to have it backwards. I don't recall reading about Caesar making a famous speech before the Senate asking for 100,000,000 denarius to rebuild Gaul after he just finished sacking it. Jack |
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What is the future of manufacturing?
On Tue, 05 Aug 2003 03:39:37 -0400, Gary R Coffman
wrote: On Tue, 05 Aug 2003 02:54:03 -0000, Akston wrote: And if anyone thinks that economic considerations did not play a major role in the U.S.A.s recent foreign adventuring, I have some nice beachfront property in Nevada to sell you. It is worth noting that Rome was not a great manufacturing power, but they did rule the known world. That position brought the citizens of Rome great wealth by controlling the flow of natural resources and the delivery of goods and services. Were there any countries that were great manufacturing powers at that point in history? -----= Posted via Newsfeeds.Com, Uncensored Usenet News =----- http://www.newsfeeds.com - The #1 Newsgroup Service in the World! -----== Over 80,000 Newsgroups - 16 Different Servers! =----- |
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What is the future of manufacturing?
On Tue, 05 Aug 2003 12:23:08 +0100, Alaric B Snell
wrote: Carl Byrns wrote: It's likely a lot of us will never retire. Please God, when I die on the job, let me fall into a chipper and leave one hell of a gory mess for someone to clean up. That's a bit sad - I hope you haven't got any friends and family! Sorry- I meant to be semi- humorous. I'm a software developer by day, metalwork is something I'm studying as a hobby, but I'm also planning on getting good at it over the next few decades so that when I retire I can try to supplement my income by making pretty and/or useful things to sell at craft fairs! A lot of 'craft fair' items are semi-assembled from kits made in Asia. The 'crafters' just paint the birdhouse/teacup/pencil holder and sell it. Really. -Carl |
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What is the future of manufacturing?
"bg" wrote in message
om... In regards to the factories in China. I know, I visit every year. You are absolutely correct about the modern equipment in many facilities. The USA mould industry is all but wiped out. Not just because the Southern Chinese do it chepaer, but they also have more advanced equipment. This is mirrored all over the country in many industries. But we have to keep thinking positive, while realizing the negative. We need better research, better funding in the right places. Better focus. Bush proposed a $1 billion investment in new energy technology. It is a drop in the bucket. Oilmen were laughing all the way to the bank, ****ing in their pants. $1 billion is a joke. We need continuous investment and research on a similar level as the manhattan project. There is nothing we cant do, if we set our minds to it. Let's separate energy and manufacturing, to keep things straight. Regarding manufacturing, it isn't the Chinese who are implementing new technology. It's the US-, Japanese-, and EU-based multinationals that have partnerships or their own factories in China. When they have a new innovation they want to put in place, they now put it in place in one of their factories in a low-wage country, not in the US. As you say, China's best manufacturing companies now have some of the world's best technology. So the "innovation" argument is a dead-flat loser. Regarding energy, what is it you're thinking about? Fusion? Solar? What? What is it that we could innovate that wouldn't show up in China before you've turned your back? Here's the question you have to ask yourself: Who has the capital to implement these things, and where is it in their interest to implement them? The first answer is, large multinationals. The second answer is, where it will be most profitable for them. And the answer to that is China. The only thing that would drive a really large US-government-funded research project in energy is an immediate energy crisis. Not some crisis predicted for the future, but one that exists right now, today. That's the reality. Ed Huntress |
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What is the future of manufacturing?
In article , Ed Huntress
says... Regarding energy, what is it you're thinking about? Fusion? Solar? What? What is it that we could innovate that wouldn't show up in China before you've turned your back? Maybe the energy costs in China are lower than here, because they run everything on soft coal with no polution controls? Jim ================================================== please reply to: JRR(zero) at yktvmv (dot) vnet (dot) ibm (dot) com ================================================== |
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What is the future of manufacturing?
"Sunworshiper" wrote in message
... Vey good Ed , sounds like you have a good grasp of it. I think their agenda is to level the playing feild world wide and thus the top will come down and meet the bottom rising ... someday. Its a good plan and has to be done someday. Not in the right hands and timely if you ask me. Something is fishy . When I get caught waiting at a usa car lot I have to ask where the engine is made on this car and they don't know or won't answer. Let us not play games. Well, as for China's "agenda," it's simply to improve the lives of their people and to become an economic power like the other economically advanced countries. Nothing would be better for the US than for Chinese machinists to be making $50,000/year. I seriously doubt if most car salesmen have the slightest idea where the engines in their cars are made. Ed Huntress |
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