Labor Shortages Where They're Least Expected

We hear so much about American manufacturing workers being laid off due to outsourcing, it came as a real eye-opener to read a report last year about a dire shortage of manufacturing workers. The catch is that the folks losing their jobs are mostly unskilled assembly line workers. However, modern American factories rely heavily upon automation using sophisticated computerized machine tools. Operating and maintaining those machines requires considerable technical skill, and those are the people in short supply.

You can read more about this critical problem in a commentary penned by this reporter last year. (Registration required to access Supply House Times archives.)

Another article on this subject appeared last week in the New York Times. (Registration required.)

I was reminded of the manufacturing employment crisis by another article that recently appeared here at industrialinfo.com. (Registration required.) This was is about a study showing a budding crisis in the oil and gas industry due to an aging workforce and lack of replenishment, which is the same basic problem hitting the manufacturing sector.

China Charged With Dumping Stainless Pipe
Yesterday, four U.S. producers, Bristol Metals, Felker Brothers Corp., Outokumpu Stainless Pipe, Marcegaglia USA, and the United Steelworkers union filed antidumping and countervailing duty petitions before the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) alleging that Chinese imports of welded austenitic stainless steel pressure pipe are being dumped and subsidized and are injuring the U.S. industry. The products subject to the petition meet the ASTM A-312 or A-778 specifications using grade 304 or 316 stainless sheet.  They are used as high pressure pipe in the chemical, petrochemical, pharmaceutical, food processing, energy, brewery, automotive and paper industries. Imports from China increased from 13,993 tons in 2005 to 31,766 tons in 2007 with a value of $160 million.  They are believed to have taken approximately 30% of the U.S. market. The petitions allege numerous subsidy programs and dumping margins ranging from 25% to 45%. The ITC will make preliminary injury determinations within 45 days and the DOC will make preliminary subsidy and dumping determinations within 90 and 160 days respectively, subject to extensions.

HD Supply Shuts 10 Branches In Jan.;
Pulls Out Of Selling HVAC Business
HD Supply  is reported to have closed 10 plumbing and/or HVAC branches in the month of January. Eight of those facilities were former Apex Supply units in the states of Georgia and Tennessee. Their closing was reported to be a consequence of Trane ceasing its distribution agreement with HD Supply. Other closures were in Mobile, AL and Tucson, AZ. HD Supply also told Supply House Times they have decided not to sell their HVAC business to Watsco, following negotiations that broke down over a suitable price.

CORRECTION: RJS Co-Founders Still Very Active
In the last edition reporting the elevation of James Bokor, Jr. to president of Buffalo, NY-based stainless piping distributor Robert-James Sales, Inc., we mistakenly referred to the "retirement" of company co-founders  James Bokor, Sr., and Robert Glidden. The senior Bokor and Glidden remain on the board of directors as chairman and vice chairman, respectively, and are still active in the day-to-day operation of the business.

Benfield Book Tackles Private Labeling

Disruption in the Channel is a research book by Benfield Consulting and Merrimont Consulting, LLC regarding the importing of foreign off-brands by durable goods distributors. You can read more about the book by going to the site www.disruptioninthechannel.com, or ordering the book by going to the link at www.benfieldconsulting.com/benfield_site/off_brand/off_brand.htm .

The book is based on a survey of some 200 distributors of whom 70% were executives about their current practices and future plans for importing off-brands.  Findings include significant price breaks for off-brands, high quality products and support services from foreign manufacturers, a domestic manufacturing base that is in real trouble in their competitive offerings, and distributors who have to undergo many changes when buying off-brands or risk losing out.

New Website Focuses On Latino Labor & Business

The González Report is a website created by speaker/consultant/columnist Ricardo González focused on businesses that manage Latino labor or are in business development with the Latino community. It delivers news, reports and research that affect business with Latinos in three areas: sales/marketing, labor/management and political/social. The website also features commentary and analysis.

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PME's Hydronics Webinar Series Continues in 2008