Manufacturing Growth Hits Lowest Level in 2 Years

[laundryshark]

Has it occurred to anybody that people are fed up with such “disposeable,” overly-priced goods of the supposedly durable kinds!?--Laundry Shark

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[norgeway]

And!

Has it occurred to anyone we want to see good, quality goods that say made in USA on them like we did in the 50s, im a bit radical, but I would like to see all goods from China banned!

 

[arbilab]

Where's the finished goods import tax when you need it?

 

[ronhic]

as it occurred to anyone we want to see good, quality goods

Well that's what people think they want.....  

 

....what they actually end up purchasing most of the time are goods that have more 'bells and whistles' than they'll ever use or, indeed, need.  

 

The other thing to consider is that the US effectively pushed much of the world to be 'global' and has 'free trade' agreements in place with many many countrys, including Australia, which prevents tariff protection for your own home-grown industry's.   The US was, for many many years of the last century, a power house of manufacturing from technological, quality and output points of view. However, industry got greedy and the competition too much....protectionist barriers had to be lowered to allow foreign trade in as other countrys lowered theirs to allow US goods in.  

 

Then manufacturing went offshore.....and the slippery slope of consumerism really ramped up.   People had more money compared to the 1950's to spend on goods....goods were cheaper and did more. The fact they don't tend to last as long doesn't matter...Mr and Mrs 'have everything' care not - they want to update every 5 years anyway.  

 

Oh, and lets not forget two diamond observations - Many people don't know how to use their goods appropriately leading to early failure......and because they are cheaper, they don't care.  

 

As an example, my mothers first automatic machine was based on a Speed Queen design - 1968 Simpson 4 speed Fluid Drive. It was about 21yrs old when updated, but cost her over 4 weeks pay when she bought it in 1968! If that was me today paying AUD$4000 (USD$4400) for a washing machine, I'd DEMAND 21yrs use out of it.

 

[minermike]

You know I dont post on here much but when I saw this I felt I would put my two cents in. I'm remodeling a kitchen and I didnt realize how hard it is to find simple appliances anymore! Try finding a gas range with a standing pilot light, a fridge WITHOUT electronic controls, a dishwasher with a regular electromechanical timer, heck even top loading washers with a regular agitator are on the endangered list! Sure you can find all of the above yet but you really have to look it seems. I'm using a 1982 vintage Hardwick range that never ever needed a repair! Try to do that with a modern range with fancy electronic controls that dont do anything other than make it difficult to warm a can of tomato soup! I realize time marches on but I think the appliance manufacturers are going a little overboard.

 

[mattl]

Well, I'd like to agree that people want quality products, but I really don't believe that is the case.  It's simply a factor of disposable income.  Wages are stagnant or decreasing, people maxed out their credit and their houses are work 1/2 to 2/3rds what they were a few years ago.  Plus, there is very little new build going on in the housing industry so Whirlpool cut production dramatically and all the other little and big things you need in a new home are still sitting on the shelves.

 

[ronhic]

Matt

I'm sure that is the case in many western country's, not just the US. Even here, just about the only western democracy to NOT go into recession, people have slowed their spending to a crawl. Retailers are hurting....

 

Mind, when it comes to a manufacturing base for domestic appliances....most of ours have been shipped offshore since Electrolux bought them.

 

[twinniefan]

Retailers hurting

You don't know how right you are Chris, the retail market at the moment is operating at a snail's pace and the shoppers who are out are only spending what they have to and are not buying too many non-essentials at the moment.
Even in our charity store we have to have special buys and price reductions or people will not buy, in fact in the centre where I am located has a Go-Lo- discount variety store who are as of today are having between 50-85% discounts on selected goods and up the other end is Homeart who for the last 2 weeks are having 80% off most goods in store.
Today's decision by the Reserve Bank on interest rates may help a little but in the long run I am not sure what will happen.

 

[beekeyknee]

Tariff

A tariff on imported goods that are of poor quality and under priced would be nice, but other countries would probably put a tariff on our exports. For example, if we put a tariff on Asian goods, then they would probably put a tariff on our goods. Many Asian people like our automobiles. If we put a tariff on their goods, then they will probably put one on ours and then we loose jobs in that market.

I worked for Western Electric many years ago in Kansas City. They paid a good wage but they also set our daily production rates so high that it was nearly impossible to make our daily quota. Then there would be a meeting between company reps. and workers with our union reps. there to support us. There was constant bickering and fussing about rates vs. wages. Union wanted wages high and company wanted rates higher. Neither side would settle on a happy medium and the workers were stuck in the middle.

When the economy was good, they would hire a bunch of people, work them to death, and then lay them off when the economy went down. Then everybody would go out and collect their unemployment benefits until they ran out and many times not finding a job after that, might end up on public assistance.

And the whole time, communist countries were having their billions toiling away, making cheap goods to eventually flood the American market. Our people wanting cheap goods bought right into it. And of course! Our jobs were going over seas. Many people didn't have jobs or money so,"A penny saved is a penny earned". We were bombing their front door while they were sneaking in our back door. It's bad when you shoot yourself in the foot.

As Ms. Franklin says, "You will remember my name. I'm the one who beat you at your game".

Just my take on things, y'all. Don't go gettin' all bent out'a shape or anything.
What a sticky wicket.

 

[ronhic]

Brian

You say the word 'communist' as if we're in the 1950's.

 

What I'll think you'll find is that those country's, and China in particular, are just doing what the US did last century - capitalising on an opportunity.

 

American manufacturing was pretty much 'king of the world' when it came to productivity - sales and profits were high...that's why rates of pay went up...the unions could successfully argue that workers deserved it.

 

Lets not forget that whilst nearly every country in Europe, much of Asia along with Australia and New Zealand were affected by the Second World War, America, because of the sheer size of her population (not detracting from the thousands who lost their lives...that's a debt nobody can really repay) and with the infrastructure already in place, was placed to capitalise post War on a boost in consumerism - the baby boom.

 

As an example., Britain has only recently repaid the loans provided to her by the US - nearly 70 years later.

 

When we sit and deconstruct what China is 'doing'.

 

They are moving very rapidly from an agrarian society to one that manufactures. That is, meeting a global need for goods of all shapes and sizes from clothing to cars to appliances.

 

It is no different to what the US and other western countrys have done, just later.  Sure, some of those goods may not be top-notch quality, but don't blame it all on China. In most cases that's because the build specifications provided call for a 'widget' built to 'X' standard - often by a foreign company e.g Whirlpool?

 

...and it can't be all bad. Citroen, Peugeot, VW (since the midlate 1980s'), Buick and Honda all manufacture cars there for the Chinese market, some of which do get exported to Western countrys too. And lets not forget the current 'Diva of Domestic Appliance Quality', Miele, also have a vaccuum cleaner factory in China....

 

Finally, it may surprise you to know that the Chinese also like quality. Remember, they havn't had the disposable incomes that the US in particular has enjoyed for 70 or more years and there is an expectation that what they spend their hard earned cash on will do the job.....

 

[mattl]

At this point I see it as a vicious cycle.  Real wages in the US are stagnant or declining for the past 30 years, there are ample studies and report to document that.  With less disposable income consumers chase cheaper prices.  WalMart steps in and due to it's sheer size dictates prices to vendors.  Vendors cannot manufacture items in the US at the price point WM requires, so manufacturing is moved off shore for cheap labor.  Jobs are lost and there is once again less income.

 

This has happened to the lower and lower middle class over decades, and now it has moved up the ladder to the upper middle class.  Finance  and many technical jobs are moved off shore, again for cheaper wages.  And these people find they no longer have the buying power they had and a new cycle of chasing cheaper prices is started.  when you add in wage concessions that have been wrung out of those still employed it increases the cycle even more.  Now, this is even affecting manufacturing in the low wage countries.  AS I see it the only answer is higher wages and more jobs- something that is loath to happen anytime soon.

 

[beekeyknee]

The "C" Word

I agree with you completely, Matt.

And Chris, I used the word "Communist" because that is the term that was driven down our throats in mid to late 20th century America. The main stream media told us that Communists were bad and we needed to destroy them. I used the term so people approximately my age, in my country, could identify with what I was trying to get across. I'm not condemning any other political system, way of life, set of values or beliefs. I haven't lived in any other country, so who am I to judge? I try to keep an open mind and see things the way others might see them. I didn't want to start off my reply to the thread, "And Now To Our American Readers". How would that have looked? When I see postings from other countries, I just set back, read and try to learn. I enjoy reading postings from other countries. Especially England and her colonies, former colonies, and parts of Europe.

I would like to say that I had hoped that most would understand what I was trying to express. I was criticizing my own country, not someone Else's. We're the ones who painted ourselves into a corner. I hope I can safely say that many other people in our country feel the way I do. We feel like the rug has been pulled out from under us and the government isn't doing anything to help us get back up. In fact, some feel like they keep pushing us back down again. And finally, I did try and throw some humor in at the end. Plus, I don't normally say things like, "Y'all don't go gettin' all bent out'a shape or anything". People in the southern part of our country sometimes speak like that. There's nothing wrong with it; it's just regional. Wouldn't the world be a boring place if we all spoke and sounded the same? Now I'll drop this. I wouldn't want to be moved to Dirty Laundry.

Peace everyone.