Bracing for Tough Times
There hasn’t been much good news lately on the state of the economy, and the welding industry has been no different.
Many economists are predicting the current economic slowdown will last up to two years or more, and a recent poll by Fortune magazine found that 75 percent of Americans believe the country is headed for a recession or is in one now.
Higher metal and energy prices, combined with a weak dollar, are driving up the costs of both welding equipment and consumables as well as the cost of manufacturing and construction. These higher prices could in turn lead to reduced orders and quite possibly layoffs.
Further hurting the welding industry, some companies are reportedly using plastics to replace metal piping or adhesives as a replacement for welding.
Looking on the bright side, it looks like the vast majority of us will be receiving income tax rebate checks. Whether they are spent on basic necessities or that new piece of welding equipment you’ve been longing for, the stimulus should provide some relief on a personal and societal scale.
Has the slowing economy affected you personally? Are you doing anything to prepare for the rough economic times ahead? Share your thoughts on this subject by posting a comment below.
Average (Not Rated)
February 27th, 2008 at 4:09 pm
I think that developers and land owners, have definitely taken a step back and are tightening there budgets. It has effected my business, I am definitely slower than normal. I don’t think that they are going to be as rough as one might think though. The trades are going to still keep going strong. Why? because the labor market is one of the better ones, since there are a lot more jobs that are computer and data based. Also, the American work force is getting a lot lazier as the years go by.
We don’t need any tax re-bates either, that’s not going to stimulate our economy. We need people to quit putting the heads up the rear end, and be a little more responsible about managing there income to debt ratio. It’s not that hard to do. Also with the change of a president, this happens every eight years, we tend to tighten the belt and call it a recession.
February 27th, 2008 at 4:28 pm
I am reminded of the line from the Alabama song “Song of the South” that says:
“Someone told us Wall Street fell
But we were so poor that we couldn’t tell”
A few years ago when everyone was talking about economic growth, I laughed. Here in West Virginia, we never really got out of the hard times of the mid 1990’s recession. So I thought we’d hardly notice when the next economic downturn brought “the rest of the country” a little closer to our level. Unfortunately, I was wrong. This is not just a slowdown or a downturn or a correction. This is a perfect storm of spiraling costs for us and lower demand for ANY services. Low value of the dollar would favor manufacturing and tool-up IF ONLY the Chinese hadn’t already bought all our copper, concrete, steel, zinc, aluminum, etc.
Businesses that I’ve delt with for years are closing, and I’m seeing other businesses close at a frightening pace. Seems like Wal Mart is the only guy on the block not wondering if he’s gonna be able to make payroll.
I have had increases in two area of business… Repair of coin-operated machines that are being broken into, and fabrication of security-related metalwork (ie locks, gates, and bars for windows).
But on one hand, we sort of had this comming. We elected what we thought would be a real business-oriented president. But it turned out that his idea of small-business was the bottom 400 of the Fortune 500 companies. And we gave up chasing the terrorists when we were right on their heels in Afghanistan so he could finish his daddy’s work in Iraq - at the expense of money that could have been used for fixing our crumbling infrastructure (which would have given us more work to bid on).
Then to add insult to injury, the IRS writes us a rebate check for a meager pittance to make up for the tens of thousands we are losing during this “realignment of priorities.” It’s like getting a lollipop from your doctor after getting your legs amputated. We’re all responsible for this. Let’s admit it and start putting this country back on track.
Reward businesses that invest in America by buying their products (Toyota is building factories in the US, while GM and Ford are tearing their US factories down). Pressure scrap metal brokers to sell to US buyers at a discount. Declare our metals a “strategic resource essential to national security.” If we don’t stop sending our metal to China, we’ll be sending their red and yellow flags here before long. One way trade is killing our economy. How much money do you make welding Chinese Zamak?
February 29th, 2008 at 1:43 am
There are pointers that we have to admit we failed.
1. personal saving was never emphasized to each and everyone.
2. Luxury goods should be taxed more than cigarrets and beer.
3. The American consumers should be more responsible than before, giving the local products more priority than imported ones. (This one is hard to implement, it must be an individual choice. Just remember during the Vietnam war the slogan was, “Bring the DOLLAR back home.”
March 2nd, 2008 at 4:50 pm
In America today we seem to be in a fog of sorts when it comes to understanding our financial dilemma. I know grown folks who do not know how to save money, and will spend all their money on bull without regard to their future. Until a person learns how to prepare for the future by trying to save for a rainy day and treat their financial security like a business, we as Americans will always be behind the world times.Don’t send me a check for me to spend into the economy, drop the overpriced gas prices to a reasnable level so a hard working American can afford to drive to work without spending everything on gas. The government continues to lie about our oil reserves and painta a horrible picture for our future. We are in better standing than they will lead us to believe. GOD BLESS AMERICA!!!!!!
March 2nd, 2008 at 10:23 pm
No tough times to brace for - there already here.
God bless America! I still believe we can wake up and turn it around before it’s too late. Before we can’t afford the gas or the vehicles we buy it for. Before we’re all riding our “once U.S.-made Schwinn’s” to work like Chinese workers do.
My company makes shingle removers, lawn and garden tools, flooring removal tools, etc. All but three components for our nearly 50 tool line are made in America.
I handled purchasing for some time and found it impossible to buy shovel heads made in the USA (trying to get an MSDS sheet on a part you had to purchase oversees is simply not attainable). The importer couldn’t tell me what the laquer finish was comprised of either. If you can give me a U.S. supplier of drain spade heads, I’ll be eternally grateful. What really burns me is that we are located in what was one of the largest steel producing areas of the country and I can’t buy that part here.
We should soon be hiring more welders although getting US made steel for them to work with can be a difficult task as well - but I will only buy US made.
Maybe one day - before it’s not too late - we’ll get a realignment on NAFTA, we can open steel mills again instead of dismantling them to be sold for scrap, and we can all get back to making steel and welding our butts off and growing our fine country back to its not-so-distant properous times.
I will keep searching for US made products - I don’t care if WalMart is less expensive. We’ll continue to make our tools here for you to buy because we believe in building American made products for people who still appreciate the quality produced by our efforts. The real task is convincing the “30 and youngers” that not everything at WalMart and the “dollar store” is a good value. But maybe they need to learn the meaning of the word “value” first.
And as far as flags are concerned; anyone buying an American flag “made in China” should be whipped with their “Mexican made” Levi’s.
Save yourself - buy American!
March 8th, 2008 at 11:12 pm
I own a trailer/welding shop. over the years we have built a staggering amount of trailers, handrails and other products from metal. as have a lot of my welding brothers across this country. the goverment has been hollering about a recession. is this true? are we going to have one or is it already here? could it be our goverment has sent our jobs to china and mexico i am unsure about mexico it seem that most of them have came to america. and eating away more of our tax dollars. could it be the democratics are tring to scare the public so they will get voting into office or the republicons doing the same so they will stay in office? who knows!!
A slow down will not bother them they have deep pockets with our tax money in those pockets. if the goverment keeps this up the illegals will have their jobs. things are always slow in the winter. remember that folks my family has had to dig deep into our savings to get through the last 4 or 5 months. business has started to pick back up, finially. if you build a good product or do a good service and do it honsilty you will survive. i have been told by many the way i do business is crazy but i trust in the father in heaven and i am still here. so all of you politicians that care for your money more that our livilyhood go home because you are of no good to the working class and all of us need someone in office that cares for our well being. may GOD bless america again!!!!
March 9th, 2008 at 9:56 pm
Dont forget us here in canada,we are in the same boat when it comes to cheap imports.I always try to buy us/canadian made because i want and need the quality,I dont need to buy the same tool or product three times because it just keeps breaking(its more expensive to buy imports in the long run).Fight for what you believe in.
March 11th, 2008 at 10:48 am
How ’bout offering US companies a priority in government contracts (Boeing vs. EADS). If our own government doesn’t make an investment in our economy how can we expect anyone else to?
March 30th, 2008 at 11:28 pm
I just don’t understand??? I’ve never been effected by the “economy” Other then high prices for gas. I’ve been a machinist for a very long time and we have always faired through the “tough times” Economic down turns doesn’t change may spending habits I just trudge on through like nothing ever happened. I think people put to much into the economy. If you still have your job what are you complaining about???
May 6th, 2008 at 9:43 am
Many people think that we are going into another depression. Personaly money is everything. If you have money you will survive if not you will be poor.
May 6th, 2008 at 11:23 am
I don’t really see the relation between the economy and the welding industry.
May 9th, 2008 at 1:07 pm
This economy has been engineered to produce benefits largely for the upper class at the expense of working people. We see this in trade policy, immigration policy, monetary policy and fiscal policy. Until such time as the American working people wake up and vote and/or form new political parties they will continue to suffer.