Largest US nail manufacturer clings to life under steel tariffs
Troubled Missouri nail company could be in its last month of operation
Sounds like the problem is letting in the cheap foreign-produced nails.
Trump should get on that.
Frankly, this is short term pain for long term gain.
You can ALWAYS find an individual who’s suffering next to a multitude that are excelling.
The economy is doing great, unemployment is the lowest in a long time, but I have no job - so we’re doing horribly. Or not.
The downside of tariffs. Trump is betting the Chinese (or whoever) will back down before we do.
We need to win that bet or there will be more cases like this.
Cheap foreign steel?
No wonder all my nails seem to be bending lately.
The globalists at the WSJ had to look long and hard to find this sob story. They miss JEB!
Surely there must be a federal contract somewhere to help this small company weather this storm.
Where do the other nail makers get their steel from?
I like Trump’s instincts on trade. Problem is that he’s taxing the wrong things. China taxes high value-added items and leaves basic inputs alone. So it would make sense to place a 200% tariff on China assembled phones phased in over 5 years, rather than the 25% currently mooted, and leave the penny ante stuff like pencils and bubble envelopes alone.
It doesn’t matter in what form the steel is imported. Whether as roll, ingot, or nail, it needs to be tarifed.
Though I can see how this could be problematic.
The same WSJ that called for “a five-word Constitutional amendment: ‘There shall be open borders’?” That WSJ?
There’s no easy answer. Yes, some are hurt by higher tariffs, but its also true that China would destroy the entire world’s steel industry with its centrally planned subsidies.
I wonder what this company’s supply-chain looks like? Managing sources and supply is as important as the sales function. I have no doubt this isn’t the first time they have faced problems with politically-sensitive steel duties and trade actions.
Mid Continent is owned by Deacero, a Mexican company.
Which is happening here:
a. Nail customers are doing without. Not plausible.
b. Nail customers are delaying their purchase in hopes that the trade war ends, and will make up for their lower inventory by buying more nails in the future. OK, so you get more sales in the future.
c. Foreign competitors, lacking tariffs, are growing their market share. This would be a problem.
d. A domestic competitor has NOT raised its prices, and therefore is growing its market share. OK, so the domestic market has only shifted towards the stronger competitor.
Something doesn’t make sense. 2 steel companies they can supply the steel wire, but the nail manufacturer says they can’t.
Sounds like the company has some other problems it don’t want to talk about.
For example, everyone, including the beleaguered American auto industry, has to pay more for steel because of the Reagan administration's restrictions on imports. Even the steel industry is hurt because artificially high prices stimulate the search for alternative materials.
Why is that?
I assume they can supply the steel wire at the higher, tariff-protected costs which still places Mid-Continent at a cost disadvantage compared to imported nails.
They could purchase wire rod (raw material for steel nails) from Keystone Steel & Wire at Bartonville, Illinois or Sterling Steel LLC at Sterling, Illinois. The former seems to be operating at capacity though.
I thought the wife stock for the nails came from Mexico.
The Mexico trade issue was supposedly resolved...
Popular Bluff
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
W.S.J. can’t even get that right. It’s Poplar Bluff.
They first trotted this story out in June, and the fact that they’re still doing so must mean it’s the only example they’ve been able to find in 3 months.
I suspect the problems at Mid Continent go deeper than steel prices.