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"Zombie suppliers" haunt manufacturing sector
Reuters ^ | 8/25/09 | James B. Kelleher

Posted on 09/01/2009 2:52:03 PM PDT by Kartographer

Think this downturn was rough on manufacturers?

Some analysts believe the sector's woes may worsen when demand for industrial products rebounds -- and manufacturers discover key suppliers cannot rebound with them because they are effectively -- but not yet officially -- out of business.

Call them zombie suppliers. Analysts say the speed with which major manufacturers cut output in this recession put unprecedented strain on thousands of small manufacturers that supply the industry with critical parts.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy
KEYWORDS: jobs

1 posted on 09/01/2009 2:52:03 PM PDT by Kartographer
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To: Kartographer

“for the want of a nail ...”


2 posted on 09/01/2009 3:05:43 PM PDT by NonValueAdded ("The President has borrowed more money to spend to less effect than anybody on the planet. " Steyn)
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To: Kartographer

Biggest problem is companies are simply sending letters making changes to payables and saying you are now on a 60-90 day payment schedule - tough.

Schools and governments caught in budget crunch simply add new fees and the elected representatives are not stopping these new taxing agencies causing the taxpayer problems.

Credit card companies are doubling fee, starting robo calls 20 times a day, doubling interest and pushing the little guy in the middle to the brink of insanity.

The “average” American not in government employ is being screwed by everyone and no-one is saying thank you.


3 posted on 09/01/2009 3:08:59 PM PDT by edcoil (If I had 1 cent for every dollar the government saved, Bill Gates and I would be friends.)
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To: NonValueAdded

OH this article p*sses me off. They killed off milk cows, chickens and chicks, cherry farmers were ordered to let 40% of their crops rot...and then talk about inventories being short. Of course inventories will be short, it’s planned that way to drive up prices! Prices should have dropped dramatically, but they didn’t, when oil dropped to $35 a barrel.. That’s inflation.


4 posted on 09/01/2009 3:25:26 PM PDT by Freddd (Government run health care=paying more and being denied what we already have.)
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