Posted on 11/13/2004 12:26:14 AM PST by endthematrix
Chicago, IL (November 11, 2004)- The Chicago-area based North American Die Casting Association (NADCA) points to current industry trends and 2005 business forecasts as a means of dispelling assertions by some in the U.S. foundry industry that most metal casters are in serious trouble and on the brink of going out of business.
"Confidence plays a key factor in how an industry or company makes decisions about the direction it will take in the future. NADCA's quarterly CEO Confidence Barometer shows that 2004 will see double digit increases in the percentage of aluminum and magnesium shipments. Even zinc shipments rose by a few percent in the first of this year, and more importantly, there is renewed business confidence," notes NADCA President Daniel L. Twarog.
According to Twarog, aluminum die casting shipments have had two years of solid growth and should continue to do well through 2005. Yearly totals have already returned to pre-recession levels. Shipments will end this year 6.6% better than 2003 with additional gains of 1% in 2005. Zinc shipments have picking up for the last four months, and the second quarter was the best three-month period since 2000. Year/year growth appears to be back into positive territory. Presently, NADCA represents 66% of all the aluminum cast in North America and 95% of the magnesium and zinc.
"When one considers the total shipment estimate for 2004 and forecast data for next year, it is expected that we will be a few percentage points off our record high shipments recorded in 1999 for aluminum," he adds. This activity coupled with the North American die casting industry's current marketing and public relations initiatives speaks to an industry that is clearly rebounding and ready to tackle the next set of challenges in a progressive, forward-thinking fashion.
NADCA's Twarog asserts that it's time for all die casters and those providing equipment, supplies and services (in North America) to have renewed optimism and gain some confidence in their company's ability to compete in a global marketplace. "There are always some that will say that numbers are inflated because the growing number of imported of die castings are included, and we can't make any money on the record number of castings that will be produced. It's my impression that some of these people like to be depressed. Manufacturing's greatest challenge has always been to produce something at the lowest cost and charge the highest amount that someone will pay. How has that challenge changed from 1940 until today?"
Industry designers and purchasing agents are now recognizing that North American die casters are adhering to internationally recognized standards and use advanced technology and processes that result in engineered products of the highest quality in the world. By promoting this message, NADCA will help die the die casting industry overcome challenges including competition from offshore sourcing, which often appears less expensive because of the lower labor costs and fewer regulations, according to Twarog.
Headquartered in Wheeling, IL, NADCA (www.diecasting.org) represents the world's most effective die casters creating the world's best products. Working with a North American die caster guarantees innovation, integrity, accessibility, and reliability. The organization serves as the voice of the industry, promoting growth and enhancing its members' ability to compete domestically in the global marketplace.
Tool and die ping
In our little depressed corner of the USA we have 11.6% unemployment. We are feeling a come back, too. With our new Gov, Mitch Daniels, it will only get better.
Is there a list for this...
Looks like you just started one! :-)
History has shown the tooling industry to swell during war time. So, do we need to question why we are hearing all this good news in one week and heard nothing for the last 3 quarters? Oh yeah,,,, politics.
The other day the news was kennametal inserts, today it's industry wide increased production.
Chinese CNC machining and punching machine sales coupled with news of the devalued dollar has to be next weeks good news.
Now if we could only get a 42 station CNC milling machine with a coffee dispenser, microwave and smoking area we could dominate the universe!!
"Virtually everything our industry produces is subject to European sanctions, which will rise to 10% on August 1st and will ratchet up to 17%, if Congress does not act this year to replace FSC/ETI. In every stump speech this summer, why not challenge Congress to move quickly upon its return in September (when the sanctions will rise to 11%) to replace FSC/ETI with a solid tax benefit for companies that produce manufactured and agricultural products in the United States and with long-overdue tax relief and simplification for U.S. multinationals." - John B. Byrd III President of Ass. of Manufacturing Technology (AMT)
What is FSC/ETI ?
President Bush Enacts Crane-Manzullo Provisions to Help Manufacturers Keep Jobs in America (H.R. 4520)
"The centerpiece of the American Jobs Creation Act of 2004 (H.R. 4520) -- a 9 percent tax deduction for manufacturers on the goods and services they produce in America – was inspired by earlier legislation authored by Congressman Phil Crane (R-IL) and Chairman Manzullo. The legislation, which replaces the Foreign Sales Corporation/Extraterritorial Income (FSC/ETI) program for U.S. exporters, also halts European tariffs many American manufacturers and farmers have paid on their exports this year since the World Trade Organization ruled FSC/ETI an illegal trade subsidy." In IL we just voted out Crane. Sorry to see him go.
Foreign Sales Corporation/Extraterritorial Income (FSC/ETI)...
When we start talking about speeds and feeds, thread go/no go cheating, sine bar jobe block placement, or maybe a simple geometric tolerance principle, I'm in.
This international tarrif crap is beyond me.
You want it when?? :-)
There is no doubt that war time causes a huge swell in related industry. WW2 created the biggest industrial boom in North America. After that war we shifted into peace time production of everything you can draw on a drafting board. War is a good short term economic stimulant, there is no doubt about that. Maybe that's why Ohio voted Bush, there is alot of casting Co's and metal shops in the region that have been a bit too idle, defence contracts are a big boost. Maybe some other industrial states who didn't vote Bush should have thought about that.
Same with the President's space initiatives...
Thanks for the ping and list. It is good to see a discussion on manufacturing issues on FR by people who know what they are talking about.
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