Manufacturers For FAIR Trade Are Active

Milwaukee Business Journal/American Business Journals ^ | August 9, 2003 | Rich Rovito

[ninenot]

Local manufacturers new voice of small firms on trade issues

Rich Rovito

Jerald Skoff recites a quote from Chinese war strategist Sun Tzu, written 2,000 years ago, when describing the condition of manufacturing in the United States.

"Undermine, subvert, deceive and corrupt the enemy and sow discord among his leaders, and you will destroy the enemy without fighting him."

Skoff, the chief executive officer of Badger Metal Tech Inc., Menomonee Falls, considers the quote an accurate reflection of the havoc Chinese manufacturers have wrought on U.S. companies. Suffering the most are small businesses like Badger Metal Tech, a 15-employee shop that provides surface treating for tool-and-die manufacturers.

"We are being attacked and destroyed and most people haven't heard the bombs going off," he said.

Skoff has turned his anger into action.

He, along with Catherine Schuldt, executive vice president and owner of Butler Wire & Metal Products Inc., a neighbor in the same Menomonee Falls business park, founded the Wisconsin Chapter of Save American Manufacturing (SAM) in February. The group's goal is to raise awareness of the plight of manufacturers and the growing trade deficit with China.

"Our voice wasn't being heard in Washington," Schuldt said.

It is now. SAM and its growing legion of members are pursuing tactics including targeting politicians who have supported free trade agreements the group claims are unfair to U.S. manufacturers. They plan to wage their campaign in advance of next year's presidential and congressional elections.

"Our intent is to make sure this is the biggest election ever in Wisconsin," Schuldt said. "We want small businesses to have a voice before it's too late."

A SAM member questioned three Bush cabinet secretaries as they toured the Harley-Davidson Inc. plant in Wauwatosa July 28. At a town hall meeting in Shorewood two days earlier, Wisconsin Congressman James Sensenbrenner took verbal heat from SAM supporters, who were upset with the Republican's support for new free-trade agreements with Chile and Singapore.

Sensenbrenner couldn't be reached for comment.

The group also is unhappy with U.S. Rep. Paul Ryan, a Janesville Republican.

With the backing of nearly 270 manufacturers in Wisconsin, the group has been working closely with the American Manufacturing Trade Action Coalition, which is lobbying Congress to implement safeguards, such as quotas and tariffs, on Chinese imports.

Incorporating SAM SAM recently filed incorporation papers so that it can begin collecting donations to pay for newspaper, radio and television ads, Schuldt said. The group also plans to run a booth at the Manufacturing & Machine Tool Expo at State Fair Park Sept. 30 through Oct. 2.

The continued shifting of jobs from the United States to China, with its vast work force and scant wages, is killing small American manufacturers already under pressure from original equipment manufacturers to cut costs, said Schuldt, whose 28-employee company makes wire products such as material handling baskets, vacuum bag cages and fencing.

"We can't even buy raw materials for what (the Chinese) sell it for," she said.

Skoff and Schuldt say their businesses have been hurt, either directly or indirectly, by the outsourcing of production and jobs to China. Low environmental standards, cheap labor, poor patent protection and the tying of Chinese currency to the dollar have made it difficult --impossible in some cases -- for American manufacturers to survive, they said.

"These jobs are gone, never to return. You don't just close the tool shop down the road until times get better," Skoff said.

Trade with China is proving a greater threat to American manufacturers than free trade with countries such as Japan and Mexico, he said. That's because the flow of work and jobs to China has been a one-way proposition out of America, he said.

"There's no way you can compete," Skoff said. "We want fair trade, not free trade."

One of Save American Manufacturing's top priorities is to get the United States to withdraw from the World Trade Organization and to rescind China's status as a "most favored nation" trading partner.

Schuldt and Skoff said they decided to form Save American Manufacturing because organizations like the National Association of Manufacturers are catering only to the deep-pocket multinational corporations and not doing enough to support smaller manufacturers.

Through free trade agreements, the federal government is working to lower tariffs on U.S. exports in order to "level the playing field," said Scott Otteman, director of international trade policy for the National Association of Manufacturers. Tariffs on U.S.-made products exported to southeast Asia can be as high 30 percent.

If the tariffs become low enough, smaller U.S. manufacturers can export their products directly to foreign countries, Otteman said. NAM also is lobbying to untether Chinese currency from the U.S. dollar, he said.

"If (SAM) is opposing negotiating free trade agreements, then they are severely misguided," Otteman said.

Wisconsin Manufacturers & Commerce generally supports NAM's stance on free trade, said Nick George, executive director of public affairs for the Madison-based organization.

"We are aware there is a difference between free trade and fair trade," George said.

Save American Manufacturing is wrong to target politicians like Sensenbrenner without examining overall voting records, George added.

"This is the danger of single issue organizations," he said.

Several Milwaukee-area labor leaders recently met with Schuldt and Skoff, who operate nonunion shops, to discuss joining forces in lobbying politicians.

"Labor and management are together on this issue," Schuldt said.

John Goldstein, president of the Milwaukee County Labor Council, said Save American Manufacturing representatives already have appeared side-by-side at recent Milwaukee-area appearances by Bush administration officials.

"They are a great ally," Goldstein said. "We are singing from the same hymn book."

Labor leaders and SAM representatives are planning a public forum in early fall to address the Free Trade Area of the Americas, which would create the world's largest free-trade zone.

[Paul Ross]

Ping.

[Iris7]

When I got back from Viet Nam I was deeply interested in how that clusterf!!k had come about. Probably the most important single book in my current understanding was Griffith's translation of Sun Tsu.

The Chinese are far along in their program to kick us out of East Asia. Americans are oblivious. After Chinese goal number one is achieved, it is on to goal number two. Americans appear to be as dumb as the Chinese figure us to be. Good grief.

[Paul Ross]

CATO, due to its own research ineptitude, and inflexibilty... is going to go down hard on this issue. [ I suspect their staffers are all overpaid and should be outsourced ] CATO will also drag with them all the Republicans foolishly followed, and fail to recognize that such unbridled Free Traitors have led them lemming-like over the cliff.

The looming political carnage will merely mirror the US economic collapse. And unfortunately, they will let Hillary and the Marxists into complete control. It is bad enough now with spineless RINOs unwilling to stand up to the caterwauling communists. Just wait til the Clinton's are back in the White House. They will be leading the 'commie-choir'. [Paging Registered and Doug from Upland ]

[lelio]

Wisconsin Manufacturers & Commerce generally supports NAM's stance on free trade, said Nick George, executive director of public affairs for the Madison-based organization.

Looking on NAMs website they link to their president's comments on trade with China in a Washington Times op ed piece. He makes these four points:
1. China must comply with WTO (a $2k a year worker is going to buy something from the US?)
2. China must stop manipulating its currency's value (good, but only a 40% correction in price)
3. China must stop subsidizing its industries (good)
4. China must stop IP theft.

They're all good points, but it still doesn't address that a) China's a communist country and can do whatever they feel like, b) if they eliminated all their tariffs on our goods we still couldn't sell them anything as they don't have the money to buy it, c) no matter what their labor is 1/100th the cost of it here.
But its a good start, but I'm a little worried that the head of a manufacturing group thinks that our manufacturing base can remain here solely by actions on the part of a foreign communist country. Isn't it time to think of ways to protect our own jobs?

[Bobsat]

Several years ago I bought a 350# capacity hand truck with a foldable nose plate and collapsable handle for $18 delivered. I wanted it to replace the airport luggage carrier that I'd overloaded many times. When it arrived via UPS, I was absolutely shocked because it was very well built, obviously heavy duty, well finished, and made of quality components. After having spent a couple decades in manufacturing, design, and distribution of industrial products, I knew there was no way I could buy and ship even the wheels to somebody for $18, yet this "made in China" SUPERIOR product was staring right at me for that price. I knew I couldn't make that product for anywhere near the before shipping price even if my labor costs were ZERO!

The problem small manufacturers in the U.S. have isn't labor or materials or other reasonable business expenses. The problem is that at every step, taxes have to be paid. Taxes on labor, taxes on consumables, parasitic costs of complying with tax laws and regulations, and the list goes on and on.

The NRST or Fair Tax is the answer to a LOT of the problems American businesses have, and that's why I flagged taxman. He can explain it to you if you're interested, and you should be....

[Libertarianize the GOP]

http://www.freerepublic.com/perl/bump-list

[ninenot]

It would also be nice if the ChiComs were to stop stealing designs and patents, knocking them off, and selling complete American (ChiCom) goods for 25% of world price.

It would also be nice if the ChiComs instituted regulations on the environment, safety, and the Fair Labor Standards Act.

It would be nice if the ChiComs taxed their manufacturers at the same rate the Feds/States/Locals do in the USA.

BUT--since they won't--ought we not treat them as the enemy they HAVE ALWAYS BEEN?

[ninenot]

NAM has been bought and paid for by the Fortune 200. They have no interest in small business, and increasingly less interest in the American worker.

That's one of the reasons that the AFL-CIO is interested in this movement. They get it.

[lelio]

BUT--since they won't--ought we not treat them as the enemy they HAVE ALWAYS BEEN?

Hit the nail right on the head with that one. You can only play a game if both sides agree on the rules and agree to live up to them. I'm constantly amazed throughout history those that advocate a pacifist position to everything and get run over by any two bit dictator that can put a rock on a stick, arrow in a bow, or bullet in a gun. All your huffing and puffing about the rules doesn't make a bit of difference if the other person doesn't really care.

What's amazing is that some people on FR think that the Chinese are anything but the communists they are. They have a 1000 year view and, not surprisingly, it doesn't include us. What's that parable about helping the snake across the river that promises not to bite you? If we can't understand the moral behind a simple fable, then we're doomed.

[ninenot]

You gotta admit we are consistent.

Dept of State gave China to Mao.

Dept of Energy gave nuclear secrets to the ChiComs

Dept of Commerce gave guidance systems to the ChiComs

Dept of State AND Commerce are giving away American manufacturing base to the ChiComs.

All with the love, kisses, and approvals of Presidents Truman, Nixon, Carter, Ford, BushI, Clinton, and BushII.

[Taxman]

Thanks for the ping, Bobsat. Glad to hear FRom you.

Ninenot, I'll be happy to answer any questions you have re: the NRST and FRee (Fair?) trade.

[ninenot]

No questions at all. Best thing invented. Never will pass.

[Taxman]

Care to make a "Gentlemen's wager" on that?

[FreedomPoster]

Ping, in case you haven't been.