China Lists $50B of US Goods it Might Hit With 25 Percent…

China Lists $50B of US Goods it Might Hit With 25 Percent…

Apr 5, 2018

“China Lists $50B of US Goods it Might Hit With 25 Percent Tariff” By Joe McDonald, Associated Press Featured on Manufacturing.net China on Wednesday issued a $50 billion list of U.S. goods including soybeans and small aircraft for possible tariff hikes in an escalating and potentially damaging technology dispute with Washington. The country’s tax agency gave no date for the 25 percent increase to take effect and said that will depend on what President Donald Trump does about U.S. plans to raise duties on a similar amount of Chinese goods. Beijing’s list of 106 products included the biggest U.S. exports to China, reflecting its intense sensitivity to the dispute over American complaints that it pressures foreign companies to hand over technology. The clash reflects the tension between Trump’s promises to narrow a U.S. trade deficit with China that stood at $375.2 billion last year and the ruling Communist Party’s development ambitions. Regulators use access to China’s vast market as leverage to press foreign automakers and other companies to help create or improve industries and technology. A list the U.S. issued Tuesday of products subject to tariff hikes included aerospace, telecoms and machinery, striking at high-tech industries seen by China’s leaders as the key to its economic future. China said it would immediately challenge the U.S. move in the World Trade Organization. “It must be said, we have been forced into taking this action,” a deputy commerce minister, Wang Shouwen, said at a news conference. “Our action is restrained.” A deputy finance minister, Zhu Guangyao, appealed to Washington to “work in a constructive manner” and avoid hurting both countries. Zhu warned against expecting Beijing to back down. “Pressure from the outside will only urge and encourage the Chinese people to work even harder,” said Zhu at the news conference. Companies and economists have expressed concern improved global economic activity might sputter if other governments are prompted to raise their own import barriers. The dispute “may compel countries to pick sides,” said Weiliang Chang of Mizuho Bank in a report. “U.S. companies at this point would like to see robust communication between the US government and the Chinese government and serious negotiation on both sides, hopefully...

U.S. Reshoring: A Collaborative Challenge

U.S. Reshoring: A Collaborative Challenge

Mar 27, 2018

Featured in Design-2-Part Magazine Manufacturing Experts Answer 5 Questions on How to Turn the Tide FAIRPORT HARBOR, Ohio—North America’s $137 billion metalforming industry is driven by the production of myriad precision metal products using stamping, fabricating, spinning, slide forming, and roll forming technologies, as well as vital value-added processes. In recent decades, approximately 3-to-4 million U.S. manufacturing jobs were lost to offshoring. The tide seems to be turning modestly in recent years as companies return U.S. production, or sourcing, from offshore. In comparison to 2000-2003, when the United States lost about 220,000 manufacturing jobs per year (net) to offshoring, 2016 achieved a net gain of 27,000. Progressively bridging this gap presents huge collaborative opportunities and challenges for all manufacturers, associations, employees, communities, and the U.S. government itself. The following Q&A explores factors that are key to the collective goal of gaining momentum in successfully returning the manufacturing of parts and products to the United States from offshore. Authors of the Q&A are two men with a vested interest in the subject of reshoring: John Stoneback, president of JM Performance Products, Inc., of Fairport Harbor, Ohio; and Harry Moser, president of the Reshoring Initiative, based in Kildeer, Illinois. JM Performance Products, Inc. has been manufacturing CNC mill spindle optimization products since 2009. The company’s Patented High Torque Retention Knobs overcome a critical “loose-tool” design flaw inherent in CNC v-flange tooling that was responsible for costly, industry-wide issues with CNC milling and boring that negatively impacted production costs, cycle time, and tooling costs. An essential element of the patented design is a knob that is longer and reaches a little deeper into the holder’s threaded bore. As a result, all thread engagement occurs in a region of the tool holder where the diameter is large, and where there is correspondingly more material to resist deformation. The Reshoring Initiative, founded in early 2010, takes action by helping manufacturers realize that local production, in many cases, reduces their total cost of ownership of purchased parts and tooling. The Reshoring Initiative also trains suppliers in how to effectively meet the needs of their local customers, giving suppliers the tools to sell against lower priced offshore competitors. The Initiative is...

Manufacturing in U.S. Expands at Fastest Pace Since…

Manufacturing in U.S. Expands at Fastest Pace Since…

Mar 1, 2018

“Manufacturing in U.S. Expands at Fastest Pace Since May 2004” By Katia Dmitrieva, Bloomberg Markets   U.S. factories expanded in February at the fastest rate since May 2004, indicating sustained strength in manufacturing as demand remains solid, figures from the Institute for Supply Management showed Thursday. HIGHLIGHTS OF ISM MANUFACTURING (FEBRUARY) Factory index climbed to 60.8 (est. 58.7) from 59.1 in prior month; readings above 50 indicate expansion Employment gauge jumped to a four-month high of 59.7 from 54.2 Measure of new orders eased to 64.2 from 65.4; order backlogs climbed to 59.8 from 56.2 Prices-paid index rose to 74.2, the highest since May 2011, from 72.7 Key Takeaways The latest advance extends a series of healthy readings in the survey-based measure of manufacturing that’s being fueled by improving global economies and firm business investment. It also comes on the heels of a late-year pickup in consumer spending, which advanced in the fourth quarter at the fastest pace in more than a year. The purchasing managers group’s gauge of export orders was the strongest since April 2011. While orders and production were a touch weaker in February than the prior month, the readings are nonetheless robust. The report showed factories are having some difficulty keeping up with demand. The ISM’s index of order backlogs climbed to a more than 13-year high. Delivery times also lengthened in February, with a measure reaching the second-highest level since 2010. That may help explain the rise in the group’s gauge of manufacturing employment, which posted its largest month-over-month gain in more than two years. “All indications are that demand will continue to grow,” Timothy Fiore, chairman of ISM’s factory survey committee, said on a conference call with reporters. “There are a number of issues going on here in the supply chain that’s pushing things up. The net result is there are problems in inventories, which are growing.” In addition to firmer overseas and domestic sales, corporate optimism is getting a lift from the recent tax-cut law and reduced regulation. The ISM report showed 15 of 18 manufacturing industries indicated growth last month, led by printing, primary metals and machinery. What ISM Respondents Said CapEx purchase deliveries are moving...

U.S. Manufacturing Expands at Close to Quickest Pace Since…

U.S. Manufacturing Expands at Close to Quickest Pace Since…

Feb 2, 2018

“U.S. Manufacturing Expands at Close to Quickest Pace Since 2004” By Sho Chandra, Bloomberg U.S. factories expanded more than forecast in January and near the fastest pace in more than 13 years, indicating manufacturing was still powering ahead at the start of 2018, Institute for Supply Management data showed Thursday.Factory index was little changed at 59.1 (est. 58.6) from 59.3 in Dec.; readings above 50 indicate expansion Highlights of ISM Manufacturing (January) Factory index was little changed at 59.1 (est. 58.6) from 59.3 in Dec.; readings above 50 indicate expansion  Gauge remains close to Sept. reading of 60.2, which was the highest since June 2004 Measure of new orders cooled to 65.4 from an almost 14-year high of 67.4 Employment gauge fell to an eight-month low of 54.2 from 58.1   Key Takeaways The January reading, which exceeded the 57.4 average for 2017, shows manufacturing is benefiting from solid consumer spending and business investment. What’s more, a measure of exports advanced to an almost seven-year high, underscoring improving overseas markets.  The pickup in manufacturing is starting to generate inflation pressures as factories demand more raw materials including crude oil. The ISM’s measure of prices paid increased to the highest level since May 2011.  In a sign factories are challenged by elevated demand, the ISM’s measure of supplier deliveries climbed to a three-month high and its backlogs index rose to the highest level since September. The ISM report comes a day before the Labor Department’s January jobs report, which is projected to show an increase in factory payrolls helped to boost overall employment. Other Details ISM measure of prices paid jumped to 72.7 from 68.3 Index of factory inventories rose to 52.3, indicating stockpiles were expanding, from 48.5  Gauge of production fell to 64.5 from 65.2  Export orders measure advanced to 59.8, the strongest since April 2011, from 57.6 Supplier deliveries gauge rose to 59.1, indicating longer lead times, from 57.2; index of backlogs climbed to 56.2 from 54.9  — With assistance by Chris...

Primed for Another Year of Growth

Primed for Another Year of Growth

Jan 23, 2018

By Neil Dutta, Bloomberg  The global economy is a big driver, but domestic demand is even more important. U.S. manufacturing production just had its best year since 2011, yet some argue that 2017 was as good as it will get and that a slowdown is ahead. We think the opposite is more likely: Factory output is poised to speed up. Investors worried that the equity market is stretched should take heart. Stronger growth in factory output is a good reason to remain cyclically oriented, especially in U.S. industrial stocks. Trade, one of the biggest engines of the sector in 2017, is likely to continue to gather momentum. Stronger global growth expectations and a weaker dollar should help as manufacturing goods represent about half of all exports. Moreover, at least some of the current recovery in factories can be traced to the rebound in the mining industry. Mining output declined steadily from December 2014 to September 2016. Production was down 0.6 percent during this period, when there was also a sharp pullback in oil and drilling equipment. Today, we are seeing the opposite dynamic. With commodity markets in recovery, mining-related investment is more of a tailwind to factories. While the global economy is a big driver of manufacturing growth, U.S. domestic demand is even more important. Every 1 percentage point increase in domestic demand (GDP net of trade) boosts manufacturing production by 1.34 percentage point on an annualized basis, while every 1 percentage point increase in global industrial production outside the U.S. lifts domestic manufacturing production by 0.44 percentage point. There are several positive, somewhat related signs for the manufacturing outlook in the domestic economy. First, U.S. inventory investment is simply too low. Although the contribution of inventories to growth can be volatile from quarter to quarter, inventories tend to grow in line with final sales over longer periods of time. Today, that simply is not happening; inventories have been trailing the growth in domestic demand. If the economy expands at 2.2 percent, the rough trend since the end of the recession, inventories would need to grow by about $50 billion per year to keep pace with demand. Inventories ran below that level in 2017....