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Lao Tzu
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http://story.news.yahoo.com/news?tmpl=story&cid=580&u=/nm/20020306/bs_nm/trade_steel_dc_49
how will this affect you? did you hear about that?
how will this affect you? did you hear about that?
hey milhouse
- Thread starter Lao Tzu
- Start date
Milhouse
New member
We were talking bout this last week. Being in Canada we are excempt from this however there is some real stupidity going on on the part of these companies that were dying.
They are covered by the gov't via the tariffs at a certain rate. But all of a sudden they have been selling way under where the tariffs are set which does not make sense for them if they are trying to stay in business. This will hurt and kill some of these US companies in the short and long term.
I will give you an example.
Say you own a US company that sells keychains. Now your keychains you would normally sell in the market at say $0.30/each.You keychains after manufacturing and selling to your clients/distributors costs example $0.25
XYZ Company from Japan is coming into the country and selling keychains for $0.20(dumping).
So the gov't steps in when they see thier own country's company's losing thier shirts and sets a tariff to the equivalent of $0.28 per keychain to keep things competitive and keep these companies running.
Now is we have been seeing is these companies in our industry instead of competing and making a profit after complaining thier losing thier shirts .
What they started doing is selling thier keychains for $0.23 a keychain(below cost) which does not make any sense because of tariff's placed in order to protect them(which I have no problem with by the way because North America as a whole has been affected by the bullshit being pulled by other countries the past couple years with the dumping of several type of products not just steel)
Would it not make sense for these US companies to sell thier "keychains" for $0.26 a keychain considering they can compete with these imports and make a profit.
Just a note. This ahas been going on in our part of the industry for a few months and we have always been competitive and we have not done any of this dumping stuff. Most of the guys I compete against up here for business in canada is US product and some they win and I win too.
The US product and ours is competitive in quality price and service but I see a few areas where they could have fixed a few things in the past 6 years when thier profits where good where they are having problems as well.
Alot of my competitors in the US and here in Canada when making profits in years past have not been reinvesting in machinery either the way in upgrades and new. They have not reinvested and built on getting registered quality control systems in place(most havent a few have) which is very important in the fact that yes alot of companies have QC systems of thier own but if you dont have outside consultation auditing your system and helping you where you can improve, let alone getting you recognition publicly which instills further confidence in your product, cuts costs and time in solving any problems.
Let alone reinvesting in the most important thing of all the employees present and future.
This is more observation then critism. And I see so many companies not only in our industry doing that but in so many others as well. Instead alot of companies take the profit and give the majority to shareholders/owners etc with no thought of tommorow(the rainy days). The majority of our profit since day 1 has gone right back into the company period and will continue that way.
That being said it has affected our bottom line on your side of the border at least for now, but we dont only do business there anyways.In canada our dollar sucks so even if it happens here more with dumping I am still walking away with coin in my pocket altho not as much. And what is going on as in the example of the keychains above will last not forever or alot of these companies will be under period if they havent fucked themselves permanatly already.
That and we are diversifying ourselves as we speak and have been since day 1.
I am more worried about what it will do to these US company's long term as in my "keychain" analogy to be honest. I think its insanity for no reason and I dont want to see people out of work because some moron at the top of a company with all his coin stashed away kill his company at the expense of his employees who have family's to feed.
And any Gov't people who are members here should be asking the same questions to concerning what some companies have been doing since tariffs in different industries have been set.
They are covered by the gov't via the tariffs at a certain rate. But all of a sudden they have been selling way under where the tariffs are set which does not make sense for them if they are trying to stay in business. This will hurt and kill some of these US companies in the short and long term.
I will give you an example.
Say you own a US company that sells keychains. Now your keychains you would normally sell in the market at say $0.30/each.You keychains after manufacturing and selling to your clients/distributors costs example $0.25
XYZ Company from Japan is coming into the country and selling keychains for $0.20(dumping).
So the gov't steps in when they see thier own country's company's losing thier shirts and sets a tariff to the equivalent of $0.28 per keychain to keep things competitive and keep these companies running.
Now is we have been seeing is these companies in our industry instead of competing and making a profit after complaining thier losing thier shirts .
What they started doing is selling thier keychains for $0.23 a keychain(below cost) which does not make any sense because of tariff's placed in order to protect them(which I have no problem with by the way because North America as a whole has been affected by the bullshit being pulled by other countries the past couple years with the dumping of several type of products not just steel)
Would it not make sense for these US companies to sell thier "keychains" for $0.26 a keychain considering they can compete with these imports and make a profit.
Just a note. This ahas been going on in our part of the industry for a few months and we have always been competitive and we have not done any of this dumping stuff. Most of the guys I compete against up here for business in canada is US product and some they win and I win too.
The US product and ours is competitive in quality price and service but I see a few areas where they could have fixed a few things in the past 6 years when thier profits where good where they are having problems as well.
Alot of my competitors in the US and here in Canada when making profits in years past have not been reinvesting in machinery either the way in upgrades and new. They have not reinvested and built on getting registered quality control systems in place(most havent a few have) which is very important in the fact that yes alot of companies have QC systems of thier own but if you dont have outside consultation auditing your system and helping you where you can improve, let alone getting you recognition publicly which instills further confidence in your product, cuts costs and time in solving any problems.
Let alone reinvesting in the most important thing of all the employees present and future.
This is more observation then critism. And I see so many companies not only in our industry doing that but in so many others as well. Instead alot of companies take the profit and give the majority to shareholders/owners etc with no thought of tommorow(the rainy days). The majority of our profit since day 1 has gone right back into the company period and will continue that way.
That being said it has affected our bottom line on your side of the border at least for now, but we dont only do business there anyways.In canada our dollar sucks so even if it happens here more with dumping I am still walking away with coin in my pocket altho not as much. And what is going on as in the example of the keychains above will last not forever or alot of these companies will be under period if they havent fucked themselves permanatly already.
That and we are diversifying ourselves as we speak and have been since day 1.
I am more worried about what it will do to these US company's long term as in my "keychain" analogy to be honest. I think its insanity for no reason and I dont want to see people out of work because some moron at the top of a company with all his coin stashed away kill his company at the expense of his employees who have family's to feed.
And any Gov't people who are members here should be asking the same questions to concerning what some companies have been doing since tariffs in different industries have been set.
