manufacturing
Companies understand what it's like to weather a down economy
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Tuesday, October 14, 2008
Manufacturers, in Dayton and beyond, have already been through the economic wringer. Many long ago accustomed themselves to tough times.
But no one denies that today's landscape poses unique challenges, many of them striking all at once. Lenders give would-be borrowers greater scrutiny. Consumer demand, long an economic lifeline, seems to be drying up.
And the low dollar — which helped keep American manufactured exports to other countries priced low — has slowly but steadily risen in value against foreign currencies.
"We're doing OK right now," said Rick Little, president of Kettering's Starwin Industries, a precision machining shop with military and commercial customers. "I think the bigger concern is if the economy itself starts to contract. Then we're going to see business fall off."
Little said Starwin has stayed ahead by maintaining a broad customer base.
But he worries about new tax increases and government mandates, such as being required to offer employees seven paid sick days. Such mandates can make American manufacturers "less competitive worldwide," he said.
Hank Cox, spokesman for the National Association of Manufacturers, said American manufacturers still employ 14 million people. And 75 manufacturing workers today produce what 100 manufacturing workers made in 2000, he said. As well, U.S. manufacturers enjoy a trade surplus with nations with which America has free-trade pacts: Canada, Mexico, Australia and Peru, he added.
Still, NAM has revised its forecast, with association economists saying they expect a recession this quarter, enduring for the following two quarters, Cox said.
Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.
