Tuesday 14 June 2011

Welcome!

Welcome to our Multicyl blog page where we openly discuss current issues and items related to our industry, both in North America and Globally.

Here is the place to look for trade information related to the machine tool and / or press industry. We also publish technical data for use with Multicyl products and discuss issues concerning the use of our product.  We can assist manufacturing engineers with examples of how other customers' innovations and applications improved their bottom line. 

Here is an article that got my attention from the Globe and Mail which addresses some of the fallout from the drop of the US dollar.  Every cloud has a silver lining and in this case the surge of US Exports has had a surprising effect on the North American economy. The eventual rise in value of the Chinese Yuan should also assist with US exports. 

Here are some excerpts from the article, see below for full story :  

U.S. manufacturers are leaving China behind
The United States exported more goods and services in March than in any single month in its history: $172.7-billion (U.S.) worth. It was the country’s 21st consecutive month of rising exports, pushing the year-over-year increase to 20.9 per cent. In these 12 record-setting months, exports reached within one-tenth of 1 per cent of $2-trillion – more than four times the cost of the country’s imports of crude oil.

Click here for full story from Report on Business writer Neil Reynolds

Reported inflation rate for China for May was 5.5%.  Couple this with their double digit annual wage increases and we may not be too far away from the level playing field that manufacturers here are looking for, especially when compared to the lower wages demanded by some of the southern states.  The US housing crisis is not yet over as demand is well below the supply of existing real estate. Add to this the post crisis lower real estate values and the resultant reduced monthly mortgage payments puts the US in good shape to maintain their position of producing 22% of the world's manufactured goods. A number that would rank as number eight economy in the world.

Twenty years ago the rise of Chinese manufacturing was greatly assisted by the brand new infrastructure afforded by their demand to capture 15% of the world's manufacturing goods.  To their credit they have persued and achieved their target.  They have also greatly improved the quality of their exports due largely to their brand new, well organized factories stocked with efficient, modern machinery.

As the US benefits from the likes of Caterpillar and NCR making their prodigal returns to US soil for their future expansions there may be immediate shortages of machine tools due to recent US manufacturing shrinkage and the glut of auctions of redundant plants, most of which have been eagerly sucked into countries like India at bargain prices. They will however need to be replaced by more efficient versions of the older machine tools therefore giving them an edge over the competition.

The retirement of aging personnel from these industries may signal the demand for training in current hi-tech jobs for the next generation.  

Jim Brennan
        President
        Multicyl Inc.