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Is Manufacturing Falling Off The Radar?

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http://www.nytimes.com/2011/09/11/business/is-manufacturing-falling-off-the-us-radar-screen.html?ref=business

JUST outside this prairie town, seven vast buildings, each painted brick red, are lined up along a highway bordered by grain fields. These single-story structures have no smokestacks or any other indication that they are, in fact, very busy factories.

Three shifts of workers produce machines that bale hay, dig trenches, reduce tree branches to wood chips, grind stumps into sawdust, and drill tunnels to run electric wires and pipes underground. Most were the creations of Gary Vermeer, a farmer, tinkerer and inventor who died two years ago, at the age of 91.

The company he founded bears his name, but for all its American roots, the Vermeer Corporation put its newest factory — and the wealth that goes with it — not here but in the capital of China. And Mr. Vermeer’s daughter, Mary Vermeer Andringa, the chief executive, presides over a manufacturing operation that relies increasingly on government support.

As President Obama urges Congress to enact a package of tax cuts and new government spending intended to revive growth and create jobs, one crucial corner of the American economy — manufacturing — has largely fallen off Washington’s radar screen.

Vermeer earns nearly one-third of its annual revenue from exports — counting on the United States government for trade agreements, favorable currency arrangements and even white-knuckle diplomacy to make exports happen. In China, that wasn’t enough. For several years, it had been running into competition from Chinese manufacturers of horizontal drills, supported by their government in the form of free land, tax breaks, cheap credit and other subsidies. With its share of the market falling precipitously, Vermeer in 2008 opened a plant in Beijing, taking a Chinese partner and drawing help for the venture from the Chinese. “I am a very big proponent of making the United States a great place from which to export,” said Ms. Andringa, 61, who is also chairwoman of the National Association of Manufacturers. But she added: “If we wanted to stay in the Chinese market, we needed to be there. That was the reality.”

So US exporters rely on govt subsidies to export, Chinese exporters rely on govt subsidies and a weak currency, I'm sure all other nations are in the same position just how screwed up is global trade when things only get made because govt subsidies.

The Austrians will love this.

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  • 277 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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