Winning! USA's largest Nail Manufacturer on the brink of closing!

a reply to: musicismagic
Two reasons, probably.

1) There is not enough of the stock they require which is produced in America.
2) American steel costs too much.

originally posted by: Phage
a reply to: musicismagic
Two reasons, probably.

1) There is not enough of the stock they require which is produced in America.
2) American steel costs too much.

Well Chinese steel is actually more expensive than US steel was just a couple of years ago. There's been a spike in the spread recently, but any company that is not hedging materials cost is not really fit to be in business anyway.

So what happened since then? Just a tariff?

Link

The founder stepped down as CEO in 2015. That usually means they are cashing out and sometimes preparing for a buy out. Kids are still there and I would says this is blaming someone else for wanting to close. It has happened for decades....

So, is Trump going to be blamed for every company that fails but Obama is championed for job growth? WTF people you cannot talk from both sides of your mouth...

originally posted by: musicismagic
a reply to: soberbacchus

Why not just use American steel. Simple solution, don't you think.

It will take years for American Steel Companies to even tool up to potentially meet all domestic demand.

By then most of the US companies dependent on low cost Steel will be bankrupt.

Apart from the fact that we are due for a recession in the next few years and Steel is sensitive to economic downturns.

We could drastically subsidize the 20,000 plus US companies that are dependent on steel and have asked to be exempted, but it would be insanely expensive and costs of those goods would still rise significantly (Harley can't make Bikes destined for the EU here and the largest Nail Manufacturer in the US lost 50% of their clients in a week when they slightly bumped prices up to off-set just some of the tariffs).

Simplest solution would be not to start idiotic trade wars and renegotiate the deals in the place.

Ask US Car Manufacturers, they are begging Trump to stop "helping" them.

Automakers don’t need Trump’s help on trade
www.detroitnews.com...

'This would widen the trade war tenfold’: U.S. automakers say no to Trump’s car tariffs
www.politico.com...

He is dangerously incompetent and impulsive. It is hurting US industry, not helping. No 4D chess, only stupid.

originally posted by: matafuchs
So what happened since then? Just a tariff?

Link

The founder stepped down as CEO in 2015. That usually means they are cashing out and sometimes preparing for a buy out. Kids are still there and I would says this is blaming someone else for wanting to close. It has happened for decades....

You are inventing fiction. Founders retire all the time.

What is not fiction is that they lost 50% of their clients in a week when they adjusted for the costs of Trump's Tariffs.

a reply to: soberbacchus

Also in the mix is there are many types of steel. For example, after Trump beat his fat chest aboutcthe Keystone XL pipeline and how it woulr be good dor American steel, it turns out the US didnt make that kind of pipe.

It ended up using Canadian steel.

originally posted by: UKTruth

originally posted by: Phage
a reply to: musicismagic
Two reasons, probably.

1) There is not enough of the stock they require which is produced in America.
2) American steel costs too much.

Well Chinese steel is actually more expensive than US steel was just a couple of years ago. There's been a spike in the spread recently, but any company that is not hedging materials cost is not really fit to be in business anyway.

Ha, as if hedging is free. Plus who believed Trump would do something this stupid? Well besides me!

originally posted by: UKTruth
a reply to: soberbacchus

Dig in.
www.bls.gov...

The labour market is doing fine.
You can, and no doubt will, highlight every company that fails, but it was ever thus.
Only a complete moron judges economic direction on highlighting the losers.

Do you know anyone who uses the word "loser" and "failing" a lot, often in tweets?

BTW, good economists study the losers because they effect the rest of the economy.

originally posted by: UKTruth
All companies that imported cheap supplies from abroad whilst STILL increasing prices and swelling their margins are going to face a harsh reality.
Long-term that is good. If there is demand for a product then a company will spring up to make it at a price the satisfies the value equation.
I do laugh at lefties whining about greedy companies having to accept lower profits.
Drug addicts have to go through cold turkey before they no longer need their highs.

Your comments indicate a lack of understanding of businesses. You charge as much as the market will bear. If you run your business on a cost plus basis, you will Trump.*

* = fail, based on his six BKs

a reply to: Isurrender73

we could cut back some of the corporate welfare going to big oil and other large corporations and end up with zero net increase to the taxpayer.

Never going to happen. Trump is in the pocket of big energy, coal-oil.

US Steel Manufacturer stocks are up, because demand is increasing. Increased demand will result in existing companies ramping up production, and new manufacturing will spring up to meet demand.

This initial struggle was necessary in order to encourage this increase in US Steel production. Without the initial struggle, the US would have continued to import.

In the long run, this will make our country stronger and more independent. This is good for US security.

US Manufacturing will not be dependent upon other countries if we increase our own production of raw materials. I find it hard to believe that some people are narrow minded and are not seeing the big picture here, and looking into the future.

originally posted by: BlueAjah
US Steel Manufacturer stocks are up, because demand is increasing. Increased demand will result in existing companies ramping up production, and new manufacturing will spring up to meet demand.

This initial struggle was necessary in order to encourage this increase in US Steel production. Without the initial struggle, the US would have continued to import.

In the long run, this will make our country stronger and more independent. This is good for US security.

US Manufacturing will not be dependent upon other countries if we increase our own production of raw materials. I find it hard to believe that some people are narrow minded and are not seeing the big picture here, and looking into the future.

Steel is hardly up since the tarrifs were announced.

No serious manufacturer will invest in capacity based on Trump's antics. Today there are tarrifs. Tomorrow there aren't. Or ghere are so many exceptions that the tarrifs are negated.

What businesses want is predictability. The chaos of Trump does not lend itself to stability.

Q1 raw gdp at 2.2 is hardly impressive.

a reply to: gariac

You haven't a clue do you? The ramp up has already started. The steel mill in my town is opening lines that have been closed for years. The problem is that they had removed machinery from the inactive lines to support the active lines so that machinery has to be replaced. They have to train people to operate that machinery. Raw materials need to be obtained. The list goes on and on. Relying on the stock market for indicators is a joke. A better indicator would be the price of scrap steel and iron.

My sheet metal fabricator told me that since they use US made steel there will be no price increase unless their vendor raises prices. That may happen as the demand for US made steel increases, I can see prices being jacked up commodities brokers. He also told me that if I knew of upcoming needs to order as soon as possible because they are getting an increasing number of orders.

Manufacturing in the US has been beaten down for the last 30 plus years. it is not going to instantly come back.

a reply to: JIMC5499

So you are accusing the member for being clueless and base that on advice from your sheet metal fabricator... Am i missing something here?

a reply to: hopenotfeariswhatweneed

I'm basing it on thirty years experience in manufacturing. I'm in a position to see the ramp up. The company that I work for MAKES some of the machinery that is needed by the steel industry. I also do consulting work for the steel mill that I am referring to.

a reply to: JIMC5499

Fair enough, thanks for the reply...

Im not sure whats the big deal its a mexican company. If they want to avoid tariffs they can get the mexican government to negotiate a trade deal. Deacaro, a Mexico-headquartered firm which ships steel from its mills in Mexico into the United States. In other words the conpanies mad because they cant undercut US steele mills anymore making their nails more expensive

www.deacero.com...

a reply to: matafuchs

Trump only gets blamed because he keeps talking about how he personally is the best jobs creator ever.

a reply to: scraedtosleep

Judging by the number of "Help Wanted" signs that I'm seeing he might have a point.

a reply to: JIMC5499

Not in my area.