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Re: Competitive edge - too much nostalgia? [message #55961 is a reply to message #55958] Sun, 31 October 2004 18:39 Go to previous messageGo to next message
Bill Martinelli is currently offline  Bill Martinelli
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Registered: May 2009
Illuminati (1st Degree)

I can say I always listen to American made speakers! some of the parts inside are from all over. Hell, even JBL and Eminence use caps and other parts made in Mexico for crossovers.

Your right and I agree that the carmakers fell alseep and got caught. Import cars when you and I were kids were total junk. Bad cheap shit and there was no doubt. Today, they rule the world.

Chrysler has great stuff today and they shold have done it in the 80's like you say. Gleasons made all the gear cutting machines but never wanted to go after the gears for front wheel drive cars. they, like the car makers suffered heavy for those mistakes.

It was always more simple. I often wonder if all this progress, inflation and upward spiraling is worth it. We have tonns of shit today. games, gadgets and widgets that make our lives simple and easy?! or not. It all comes at a cost.

Remember when the stereo system was all american, like you say? you had a choice to listen to the radio or listen to a record. NOW, good god! tubes or ss. SET or Mosfet, Radio, records, CD's DVD audio, SACD Mp3, and satellite radio for goodness sake. you get the idea. too many choices.

It's all a pyrmid scheme and its getting close to the top. I think we are all after nastalgia for one single reason. It was simple and its relaxing.

The hard decision is. We all want to earn more money, have our house values increase for no reason and have a retirment plan that we could actually live on for a few years. But, we want to be less frustrated, fewer traffic jams, less trips to the store to buy and finance some new thing everyone else has to make things easy. and lets not forget it would be nice to take less prozak, heartburn, blood pressure and cholesteral medications too.

I dont know if we make things that are inferior for any other reason than affordability. Speaking of cars though. I always thought the car companies were holding out on fuel economy technology to hold up the heads of the oil industry. If a driver in a race car can survive a crash at 150mph, why is it so many 50 mph crash's produce fatalities



Re: Competitive edge - too much nostalgia? [message #55962 is a reply to message #55960] Sun, 31 October 2004 19:00 Go to previous messageGo to next message
Bill Martinelli is currently offline  Bill Martinelli
Messages: 677
Registered: May 2009
Illuminati (1st Degree)

Let me tell ya. USA is exporting lots and lots of product right now because the dollar is so low against other currencies. The Europeans I deal with absolutely hate it. Sure they get more on what we buy because the Euro is high, but that 20% is nothing compared to the loss of business they have because US is exporting more goods. Obviously I run a manufacturing business other than speaker building. We all need a day job right? The business for our product that gets exported increases a lot every year. It's a bizzare situation. We cant assemble or make the finished whatever in this country because manual labor cost too much. I'm in NY state and most manufacturing jobs left the northeast years ago. Here in Rochester. Kodak employs 20k people used to be over a 100,000 when i was a kid. Xerox is smaller, Gleason works is smaller, Bosch and Lomb sold its sunglasses out and closed plants, Taylor instruments is gone, Burroughs is gone, Stromburgh Carlson is Gone, General Railway is another company now and builds little here. The list goes on. The university of Rochester is the second largest employer here now!
I dont have any answers but I would like to see things move toward the way they were to some degree.

Bill

Re: Competitive edge - too much nostalgia? [message #55964 is a reply to message #55962] Mon, 01 November 2004 07:29 Go to previous messageGo to next message
Manualblock is currently offline  Manualblock
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Thanks Bill; My question; do you think it is wages driving business away or is it benefits and pensions and healthcare requirements as well as environmental regulations. These issues combined absorb much more capital than labor wage costs. Just the requirements for funded pension liabilities alone is staggering. Regardless of what they tell you, that huge cash requirement is what cleared out the auto industry 30 yrs. ago. So whatta you think?

Re: Competitive edge - too much nostalgia? [message #55966 is a reply to message #55964] Mon, 01 November 2004 18:40 Go to previous messageGo to next message
Bill Martinelli is currently offline  Bill Martinelli
Messages: 677
Registered: May 2009
Illuminati (1st Degree)

Heck, JR. I wish I had answers! I see it as a combination of the wage and all the benefits. If I cost out a job the price for the labor is the hourly wage of the worker x 1.33. By adding a third to the hourly wage that's pretty close to what gets paid out in benefits. Places like China dont have that additional cost.
Having said that, I think its more the fact that in places like China where there is a large difference in pay, it's more that workers make ten dollars a day instead of ten dollars an hour.

Maybe when you compare US wages to places like Europe where the rates are more closely matched. Its the benefit packages that play more into effect as you say.

What do you think? Having been involved with unions. do you think that th unions have pushed to increase workers compensation so much that it's priced us out of the market? I have never been involved with unions and Ive done fine. I have a lot of friends in thr trades and they are all in local unions and they are all quite happy too.


Re: Competitive edge - too much nostalgia? [message #55967 is a reply to message #55966] Tue, 02 November 2004 09:38 Go to previous messageGo to next message
Manualblock is currently offline  Manualblock
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Well I see it as a quality of life issue. The myth that has developed; of the lazy shiftless union guys was very effective in turning the spotlight away from the real issues. Now we are in opinion territory here but it is well informed.
Are wages pricing us out of the market; or is the abuse of workers in third world nations acceptable.
The pollution and horrific envirenmental damage done in some manufacturing sites around these source areas of cheap labor will come to haunt us eventually and who do we think will bear the cost of the clean-up?
Two quick illustrations;
In the forties the government was faced with a choice whether to invest in the Railroads in respect to upgrading the rolling stock and lines and facilitating the modernisation of the ports and depots.
They chose to build the interstate highway system instead and fund that through tax dollars instead of profit.
With a modern shipping scheme we would have reduced cost to the manufacturers significantly.
The same time the steel industry chose to stay with the antiquated bessemer forges instead of upgrading and reducing cost.
My point; this country had the ability to support the working public and provide a decent standard of living and choices; for whatever reasons, were made not to persue that path.
Now we live in a time that allows for poorer counries to provide profits generated by many abuses but that will not last.
So when the case is made that we are wage priced out of competition, the chickens in the form of huge clean-up costs, civil unrest due to wage disparity, lack of basic health care, will and are coming home to roost.
That huge tax burden we all are victims of in terms of endless recycling of tax requirements would be minimised through co-operative wage and benefit policies; consequently we would not need to earn a 100k minimum to live in New York and 10$ per would suffice.
I just know deep down there is no free lunch, and every job shipped out of here results in a deeper burden placed on ther rest of us. So you tell me; are we saving money when the price of some item is 2$ less because a child in Shri Lanka makes it?
Around here nobody; and I mean that Nobody mows their own lawn, Mexican immigrants do it, and hey"It's only 20$ a week why should I do it"? Except when they use the emergency rooms at the local hospital for every need because the hospital; by law must treat them.
They send all their dollars home and spend nothing and don't pay taxes, but use the schools and facilities for free. I don't begrudge them a life but that 20$ is really 50$ in the end and that seems to illustrate what I am trying to say.
I know; big story for a simple question. I see you know your figures as a result of doing business and as a bright guy, how do you feel about your employees? Is it cost effective to hire for the long term or work on a just in time basis; which works better over the long haul?

Re: Competitive edge - too much nostalgia? [message #55968 is a reply to message #55967] Wed, 03 November 2004 17:57 Go to previous messageGo to next message
Bill Martinelli is currently offline  Bill Martinelli
Messages: 677
Registered: May 2009
Illuminati (1st Degree)

Well, your right. I cant imagine living in new york, la, san fran, boston to name a few. I cant say much about the steel industry but I think when you say the workers in cheap markets wont stand for it very long is on target. Isn't that the cycle that the proponents of cheap labor are hoping for to even things out later on?

I'm in no way suggesting the unions are lazy, shiftless, etc. At one point workers needed to group together and be paid better and have better working environments. All I bring up is did all this negotiating and constant pushing for more wage and benefit, accelerate inflation so fast that the rest of the world never caught up or got left behind. Thus causing a large gap in what we pay vs what they pay?

Its funny the 20 bucks cost you 50 to cut the lawn. Your an employer now and that what all the benefits, withholding tax and overhead cost some employers to pay an employee 20 bucks. I'm just talking out loud cause I just realized it's very similar in that respect.
It sucks, for sure. there are a lot of things that keep tipping the scale against us and take money out of our pocket.

Id like to allow less immigration into the US and keep more of the money we give to other countries in aid to our own people.

I don't like just in time manufacturing. Its a fancy term for cutting inventory cost, increasing delivery time and all in all having less support for your customers. Believe me, the raw materials are extremely costly. This kind of thing is just a touchy feely way to get around having inventory and breeds outsourcing. This whole concept will be full circle pretty soon. No matter what kind of JIT or CELL facility you have. It more stressful then having inventory.

The only people who "like" just in time are bean counters. They have no sense or feel for what its like to constantly change employee's direction and always need to push something through so it can be put together and shipped to make a deadline. Because, Customers don't like just in time. They like inventory that ships today. The accountants like lower inventory level since finished product has the most value. More value in wip can be pushed around cost wise as to what state its in. finished is finished and has a set cost.

I don’t like short term employees either. It far to costly to train people and bring them on board, get them settled and specialized in a field. Temp agencies and part time help is more costly than having planned out work loads and cross trained employees that can shift from one task to another. The employee becomes less stagnant doing multiple jobs and you can in essence, be a person short in every dept. When you become two people short you hire some one and you wont have to get rid of them as long as business stay at a moderate fluctuation.

If business tanks, then everyone is fucked and layoffs are inevitable. By the same token, growing too fast is just as lethal.
Its really a smaller version of the global eceonomy. It all has to stay in balance. Right now it seems more out of balance.

Bill


Re: Competitive edge - too much nostalgia? [message #55969 is a reply to message #55968] Wed, 03 November 2004 22:14 Go to previous messageGo to next message
Manualblock is currently offline  Manualblock
Messages: 4973
Registered: May 2009
Illuminati (13th Degree)
I didn't mean to imply you personally thought of workers that way, just that it is a stereotypicall view many people have. And there are lazy union employees that take advantage of the system, just like there are incompetent people at all levels.
Your explanation of inventory management is excellent BTW, I learned something and thats good; very interesting perspective,thanks.
The concept that aggressive wage increases are the staple of union demands loses weight when we realise that the average hourly worker makes 28% less in adjusted income than they did 20 yrs ago. Observe your friends who have working wives and hold a small part time job in addition to their 40 with overtime; are they living better?
I am one of the lucky ones who got in at the right time before the slide. Labor unions provided me with a good living and a good retirement; I just offer this info so it does not seem that I speak from sour grapes, I just worry about my kids and the futures that are available to the average people.
Immigration is what we are all about, but it used to be legal immigration.


Re: Competitive edge - too much nostalgia? [message #55970 is a reply to message #55969] Thu, 04 November 2004 09:57 Go to previous messageGo to next message
Bill Martinelli is currently offline  Bill Martinelli
Messages: 677
Registered: May 2009
Illuminati (1st Degree)
Thanks for your insight. It's so nice to have a civil discourse. This is a good thread and I wish more people had gotten into it. Your right about not having as much spending power. When I was a kid my mother never worked. Today it’s difficult to support a family on one income and have a spouse stay home.
I'm getting close to the brink of financial disaster anyway! I have 3 kids going to be at college age in 4 years, LOL. Looks like I'm going to adjourn my membership to the power tool of the month club...


Re: Competitive edge - too much nostalgia? [message #55971 is a reply to message #55970] Thu, 04 November 2004 13:15 Go to previous message
Manualblock is currently offline  Manualblock
Messages: 4973
Registered: May 2009
Illuminati (13th Degree)
Good God Man; three you say. Sackcloth and ashes for you! I will be forwarding my book 1000 recipes for macaroni and cheese. J.R.;( And, How to make clothes out of leaves.)

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