[searchandrecovery]

Small businesses are REALLY taking it in the chops this time around. Tool&Die shops with 5-25 employees, certain stamping outfits, etc.

I was talking more generically (not just mfg). However, now that you've brought it up - small mfg - taking it in the chops. From what you've seen, is this pretty much across the board? How does this work - do they generally service larger co's.? Can they create products to sell on their own? Curious. Do you make a distinction between metal/wood/plastic (if this is a stupid question please tell me).

[ninenot]

I've pinged Afraid because she owns a small company...

Small firms often start by removing a 'non-value-added' operation from a bigger firm. For example, I know of a very successful small business which removes paint from sheet metal (sloppy paint job, not-quite-perfect coverage, etc., etc.)

The Company started when an individual who worked for a larger company which painted its products began to notice that REMOVING the paint was a necessary and expensive pain in the nose.

So yes, small companies often serve larger ones.

Sometimes they have a product line which is unique; sometimes not.

In this State, metal-parts suppliers have been told by Ford, GM, Chrysler (and others) that if they do NOT have a facility offshore (e.g., NOT in the USA) they will not be allowed to bid on work from the Big Three.

So if they are big enough, roughly $30MM+ in sales, they might be able to put up an offshore facility. If they are smaller than that, it's not going to be a rosy future.

If they are VERY small, it's possible that they will be history during 2004 or 2005.

[afraidfortherepublic]

We are in electronic assembly for original equipment manufacturers -- industrial power supplies, medical devices, printing, etc. We are taking it in the chops.

[afraidfortherepublic]

And yes, we are automated. Some of our customers can import finished goods from Asia and Eastern Europe for less than we can secure parts -- most of which are imported. The only reason that we are still in business is that we service small to medium production runs -- as soon as the product catches on, it heads offshore.