Miles Free Director of Industry Affairs, PMPA

9 Oct 2008

Material Impacts On The Precision Machining Industry - October 2008

In this edition of Material Impacts we learn that the October price increase for steel appears to be dead due to lethargic manufacturing conditions. Only Aluminum, Steel and Coke are higher compared to the same month last year, September 2007; other items we track have fallen substantially. Aluminum is up 3.9% since January; down 17% since July. Brass Scrap is up 0 .6% since January; down 14.8% since last report in July. Copper Cathode is up 3.4% for year; down 15.9% since July. Scrap Nickel is down 21% since January; down 8% since July. Steel #1 Busheling is up 105% since January; down 4 % since July. (Actually, using October numbers, this commodity is up 37.3% over January and down 35.9%from July.) China Coke is up 58% since January; down 49.9% since July. To paraphrase the announcer on the car commercial: "Your pricing may vary. Always buy responsibly. Always buckle up." See links below for the latest Material Pricing information and China Currency publication.

22 Aug 2008

Material Impacts On The Precision Machining Industry - August 2008

Are you enjoying the Olympics? I hope so, because the effects of China’s efforts to clear the air for them have certainly had a measureable effect on the prices for our raw materials here in North America. “According to analysts, China has cut met coke output by 72% to avoid adding more polluting gases to the environment.” China Coke (metallurgical coke is used to refine iron ore to make steel) has increased in price by 215% since January. Steel Scrap is up 114% since January. Get the facts behind the materials impacting your business in the August PMPA Material Impacts Report.

Workforce Development 19 Aug 2008

Labor Day Or Talent Day?

One thing about holidays is that once they become official, they hang around. Who has not enjoyed many a picnic—fried chicken, barbeque and potato salad—on the summer holidays of Memorial Day, July Fourth and Labor Day? These are great American traditions. However, I would like to see one particular American holiday go away or at least get a name change. That holiday is Labor Day.

18 Jun 2008

Workmanship

Workmanship is an important term that’s often relied upon as the final arbiter in acceptance of our products. ASTM and other agency standards sometimes have workmanship clauses. One example is ASTM A 108, the standard specification for steel bar, carbon and alloy, cold finished. In ASTM A 108, Section 9 is titled, “Workmanship, Finish and Product Presentation.” So what is this thing that we call workmanship, and how will we know it when we see it?

18 Jun 2008

Father's Day--Revisited

I can remember the first manufacturing job I had after graduating high school. I was a stockhouse and trestle laborer at a blast furnace in Warren, Ohio. My father thought it would be a good experience and maybe give me an incentive to work a little harder in college. Good thinking, Dad.

Workforce Development 18 Jun 2008

Keeping Jobs In North America

Whenever I’ve been asked to go to a trade show or conference, I have always kept one thought in mind: “What will I learn that will help keep manufacturing jobs thriving here in North America?” My attendance at the PMPA’s National Technical Conference helped me understand that despite the many challenges our industry faces, we have a lot to be optimistic about in the precision machining industry.

17 Jun 2008

Material Impacts On The Precision Machining Industry - June 2008

As of June 2008, steel is up 109%, coke is up 105%, aluminum, copper, brass and oil are at record highs. Nickel and stainless show some softening of price. Five of the seven items we track are up over the same month last year. Lead times are extending as inventories are lean and who wants to build inventory in a volatile market? So focusing on understanding what your suppliers can do for you may be the key to your improved performance in the months ahead.

27 May 2008

Role Of Nitrogen In Free Machining Carbon Steels

One of the least understood fatcors affecting machinability of steel is the role of nitrogen.

15 May 2008

China Shipping--A Midwesterner's View

In the Midwest, we see the China trade issue pretty simply. We lose our manufacturing jobs to cheap overseas labor; we pay our taxes to Washington, D.C., and we wonder why nobody does anything about those cheap imports killing our jobs. We still wonder why the currency peg hasn’t been dealt with, and we wonder what is so difficult about this. On the West Coast, the view is a little different.

21 Apr 2008

Value-Added--A Closer Look

I was pleased with the feedback that we received from readers on our March 2008 article on “Value Added — The Key To Profitability.” Before tackling the points brought up by readers, let’s review what I mean by “value added.”

11 Apr 2008

Material Impacts On The Precision Machining Industry - April 2008

Prices are rising in materials needed for precision machining despite the economic malaise, lead by the dramatic $162 per ton increase to #1 bundles this week. Dumping cases against Chinese firms for fasteners, threaded rod, and pipe and tube are making news around the world. The talking heads on the TV news shows all seem to agree that there is a slowdown going on. Could someone please tell the Commodities that the Precision Machining Industry consumes that that is the case?