ECONOMIC NEWS

GDP Grew 2.5% In Third Quarter.

The CBS Evening News (10/27, lead story, 3:25, Pelley) reported, “If you were looking for the day the economy began to rise, today could be a contender.” In the first quarter of 2011, the GDP grew 0.4%, while in the second quarter it grew 1.3%. The 2.5% growth is “still weak, but there is a hint of momentum.” Reporter Anthony Mason said the numbers have “eased recession fears for the moment, but it hasn’t erased them.”

ABC World News (10/27, lead story, 3:00, Stephanopoulos) reported, “Signs of life in our economy” were difficult “to miss,” maybe “because we hoped for them so much.” However, “the big question tonight, will this momentum translate into jobs and the comeback America’s been waiting for?” ABC’s Dan Harris said since this summer “we’ve been living in fear of a another sickening, soul-crushing drop back into a recession,” but “the roller coaster appeared to be heading back uphill.”

NBC Nightly News (10/27, story 2, 1:30, Faber) reported that the average American “won’t feel” any effects from Thursday’s numbers announced or rising stocks “for some time, if we feel it at all.” And 2.5% growth isn’t the pace “to actually generate jobs.” However, “it creates confidence in the CEO suite, perhaps.”

In a front-page story, the New York Times (10/28, A1, Dewan, Subscription Publication) reports that Thursday’s new numbers aren’t “brisk enough” to “entirely dispel fears of a second recession,” and Kathy Bostjancic, the Conference Board’s macroeconomic analysis director said the current “growth rate may be hard to sustain,” because CEO and consumer confidence are “starting to melt away.” Meanwhile, David A. Rosenberg, chief economist for Gluskin Sheff, added that “declines in the savings rate” indicated in Thursday’s report, down one percent to 4.1 percent, while rare, “herald recession” at least half the time they occur.

According to the AP (10/27, Crutsinger), the summer’s growth was spurred by consumers “who spent more while earning less and by businesses that invested in machines and computers, not workers.” Still, the numbers are “the best quarterly growth in a year” and they were welcomed after “weeks of wild stock market shifts and the weakest consumer confidence since the height of the Great Recession.”

Bloomberg News (10/27, Kowalski) notes that in the third quarter, “household purchases, the biggest part of the economy, increased at a 2.4 percent pace, more than forecast by economists.” However, Bloomberg’s Consumer Comfort Index fell “to minus 51.1 in the week ended Oct. 23, the lowest in a month,” and 94 percent in the US said they have “a negative opinion about the economy, the worst since April 2009 and one percentage point shy of a record high.”

McClatchy (10/28, Hall) reports that Thursday’s numbers relaxed “the threat of a double-dip recession” and decreased “anxiety over the near-term economic future.”

USA Today (10/28, Davidson) reports that while some like Wells Fargo chief economist John Silvia said the report showed “very broad-based growth,” others like HIS Global Insight’s Nigel Gault said news of increased growth on the back of decreased savings is “not a solid foundation for growth.”

The Financial Times (10/28, Bond, Harding, Subscription Publication) and Wall Street Journal (10/28, A3, Mitchell, Murray, Subscription Publication) also have reports and analyst reaction.

From SME Daily Executive Briefing 10/28/2011

No snowplows in Ghana

Metal goods at Obuasi market, Ghana

“Metal fabrication” and for that matter, the metal manufacturing industry, seem to have very different meanings and specializations, depending what part of the world you are in. A few days ago I was in London, admiring a fleet of brand-new snowplows, which stood brightly at attention, gleaming and winking in the autumn sun at the Heathrow airport. I remember thinking to myself, whoever got that contract is doing all right.

Now I am in Ghana, Africa, and I haven’t seen a single snowplow anywhere. It appears that the large metal machinery here is found mainly in the forests and other mining areas, and that bulldozers are much preferred over snowplows around these parts. But even here, those large machines don’t come cheap, and renting them alone costs around $2500 a day. Again, whoever has THAT contract is doing all right too.

To most Ghanaians, however, for whom a car is out of reach, heavy industrial equipment doesn’t seem to figure much into their daily lives. Instead, their idea of “fabricated metal” consists of rudimentary yet versatile tools that can be (and are) made by local blacksmiths using age-old –and time-honored– technology.

I went to the local market today to shop for a few items, and I found a section of the market that is in fact dedicated solely to manufactured metal goods. Among the things for sale were machetes (that’s Ghanaian for “lawnmower”, “coconut opener”, “nail trimmer” and goodness knows what else), shovels (aka “bulldozers”), knives, blades of all sizes and shiny black chunks of bitumen. I asked what this was used for and it was explained to me that it is melted and used to repair holes in buckets and things of that nature. Bitumen has been in use by humans for a very long time. It was also used by ancient Egyptians in the mummification process.

I’ve noticed that in general, the local technology here is geared primarily towards avoiding a dependency on electricity or fuel, which can be hard to come by in many areas. That’s why the women at the market use a bed of coals to heat their palm oil for the fried plantains they serve up fresh daily. That’s why the local “contract maker” uses a mechanical typewriter and carbon paper to draw up legally binding agreements. And that’s why everyone owns a machete but no one, not even the most affluent, seems to own a lawnmower.

That said, imagine how amazing it would be if they could get their hands on a C. Marshall Fabrication Plasma Burning Machine! I just might be able to talk one of the local blacksmiths into buying one…as long as it comes with a really, really long cord.

– Anja Wulf

Introducing MG

MG was established in Italy, the city of Fossano (CN) in 1959 with its main specialisation in manufacturing of industrial automation.

In 1981 MG began the construction of plate bending machines and two years later concentrated its efforts and investments towards a quality production in the field of hydraulic plate bending machines; the original 5,382 sqf  of covered plant surface was extended to the present 107,639 sqf.

Today MG is able to answer to almost any kind of demand on plate bending machines manufacturing, and is in condition to propose a large range of models with useful plate length from 20” mm to 28’ and bending thickness capacity from .040” up to 10-1/4”.

The bending machines model MG and MH are the result of a continuous research and innovation in the product engineering and manufacturing, making use of components of the latest technology and innovative solutions. These models are designed and manufactured to obtain a bending capacity equal to 3 times the upper roll diameter with steel plates yield of 36,000.

MG gives customers real advantages on every large and small industrial application of boilers and heat exchangers; tanks and containers for alimentary sectors, agriculture and buildings; tank-trucks for oils and foods, road and heavy transportation; turbines and reactors; off-shore and land windmill towers; light and heavy steel structural works, excavator buckets and any other application in the field of automotive, naval, railway and aero-spatial. Every one of these sectors is carefully studied by our staff in order to give our clients the best machine, system or service.

MG machines are built to follow each customer’s specific bending requirements, expressly studied and projected for the task the customer needs to perform. We do not mass-produce and we don’t send out quotations just to get rid of stock.  We want to know what the customer’s activity is, what he produces, and listen to what he would like to have in the future and then offer the best machine that can fit his demands.

MH314C Plate Roll

Technical data

Installed power:                             10 HP
Top roll diameter:                          11.4”
Lower roll diameter:                       10.3”
Side rolls diameter:                         8.3”

Capacity

Working length:                          122”
Max. rolling thickness:                 9/16”
Max. pre-bend thickness:            1/2”

The max performances are referred to shells of diameter equal or larger than 3 times the top roll diameter and with material with a yield point 38,000 PSI.

MH314C 4-roll to be shown at Fabtech 2011

MH314C 4-roll to be shown at Fabtech 2011

We are excited about exhibiting at Fabtech in Chicago, November 14-17, 2011 and hope that you will stop by at our booth #2763 to learn more about us and our products.Come talk to our knowledgeable and friendly sales personnel. Ask questions. Pick up brochures. Get ideas. This year we have a MG made MH314C 4-roll plate bending machine on the floor. Come and take a look.

This is the ultimate evolution in the plate bending field with two dragging rolls with hydraulic pinching allowing a steady and precise material dragging. This plate bending machine is the easiest, most versatile, quickest and precise the market can offer. It comes with a Touch Command Control.

Technical data

Installed power:                            10 HP
Top roll diameter:                         11.4”
Lower roll diameter:                     10.3”
Side rolls diameter:                       8.3”

Capacity

Working length:                           122”
Max. rolling thickness:                  9/16”
Max. pre-bend thickness:            1/2”

The max performances are referred to shells of diameter equal or larger than 3 times the top roll diameter and with material with a yield point 38,000 PSI.

Back in the day…

Snowflake-shaped Christmas decoration: fun for the whole family!

When I hear someone say “metal manufacturing”, my ears perk right up. When you’re not actually in that industry, it isn’t very often that you hear the term used in casual conversation. And when one of your jobs is to write an article related to the subject once a week, your response to hearing that magical phrase becomes almost Pavlovian.

These words were indeed uttered in casual conversation this last Friday night, at a friend’s house in the hills on the French side of St. Martin, with lovely views of the Caribbean from the veranda we were having dinner on. Our company consisted of a “typical” St. Martin mix, including but not limited to dinner guests from the Bahamas, the US, England, Holland, Canada and France. The newest addition to our dinner party hailed from Manchester, England. With his accent, just about anything he said sounded funny regardless of its actual content, but to top it off he was a genuinely amusing character: so typically “Manchester” that he could have been a mascot for his city.

In any case, he started telling us about his metal manufacturing class that he had taken back in high school. Apparently, in England, metal manufacturing shop is a pretty typical high school elective. It was particularly popular in his school, mainly because someone in his class had the bright idea of using the metal workshop and tools to make Japanese throwing stars. This idea then spread like wildfire through the class.

From what I am given to understand, Manchester locals are a pretty tough crowd to begin with. They are world-famous for their soccer (“football”) and rugby skills, owing not so much to their refined technique but more to their raw aggression, their love of a good fight (and good beer), and the fact that they consider cauliflower ears a fashion statement. So really it should come as no big surprise that a bunch of high school students from Manchester started dedicating themselves very enthusiastically to mass-producing deadly samurai weapons in their metal manufacturing class.

Our friend described with genuine glee and amusement how, within a few weeks, his high school was littered with evidence of their turf wars. He talked about Japanese throwing stars stuck in walls, ceilings, furniture and even heads. What he never even thought to mention was “where were the teachers?” Apparently, this is considered perfectly acceptable behavior where he’s from. And the kid with the Japanese throwing star stuck in his temple probably wore it with pride.

The upside of this anecdote is that, 40 or so years later, this guy is still talking enthusiastically about metal manufacturing. It made an impression on him (maybe literally, although I didn’t see any visible scars) that led to a life-long love of the subject. Let’s be perfectly clear: I’m not “recommending” or “suggesting” that children of tender school-age years in the US should be encouraged to use their own metal shop class as an armory: I am merely relaying a story here.

With that said, the holiday season is coming up. Wouldn’t it be lovely to teach kids metal manufacturing skills by having them make pretty metal snowflakes as Christmas decorations? And if they happen to also lend themselves to a frisbee-type motion, well then that would just be a coincidence, right? What’s important here is that it would probably genuinely increase the popularity and renown of metal manufacturing in the long run. Sort of an “end justifies the means” kind of thing. Right? Right?

And just for the record, the guy from Manchester didn’t grow up to be some sort of deviant. He had enjoyed a successful career as a captain in the Merchant Marines, and he is also CEO of his own company.

I’m not really clear on what happened to the kid with the Japanese throwing star stuck in his temple.

-Anja Wulf

African Gold

Illegal gold miners in Africa

Last week I told you about the shipwreck that they’ve discovered just a short walk from where I live. Although I don’t have too many complaints about staying on a beach on a Caribbean island, this is about to change. Africa, here I come.

My husband is already in Africa. He’s actually working on establishing a gold mine there. No one seems to believe this when I tell them, but that’s OK since the last thing I want to do is invite more competition. The place where he is has a lot of illegal mining activity. He went into the jungle recently and took some pictures of the miners.

Their current rate of progress is pretty dire: they work extremely hard to extract a pretty measly amount of gold per day (although in their country’s economy, it’s probably well worth the effort). However, their technology is so primitive that their most advanced (and pretty much only) piece of equipment is a shovel.

What they do is this: they go into the jungle and start digging. They dig holes into the ground as deep as 3 meters. While one person digs, the other person starts filtering the mud using water and basically a blanket. That’s pretty much all there is to it. It’s the same technique that the ancient Egyptians and other civilizations from thousands of years ago used. In fact, it’s the same technique that gave rise to the “Golden Fleece” of ancient legend.

They don’t cover up the holes once they’ve dug them. Then the rains come, and what looks like a puddle on the surface is actually a 9 foot-deep hole. It can literally be fatal to take a walk through the jungle for this reason.

The tribal chief, who owns the land, is not happy that the illegal miners are taking gold off his land without giving him a cut. This is why he is only too happy to welcome a few Westerners into his neighborhood who are willing to give him a percentage of what they extract from his land. This said, it’s not uncommon to have 3 different people approach you to inform you that they are the tribal chief and in charge of the land. In any case, it is also important to maintain extremely friendly relations with the illegal miners so that your high-tech equipment (and by “high tech”, I mean anything more advanced than a shovel) doesn’t “accidentally” break overnight when it is left on the premises.

It’s not quite as structured or regulated as doing business in the US, and it’s a tad more risky than working at a 7-11, but then again, it’s also a bit more interesting. For example, I just found out yesterday that in the particular area where my husband is doing business, there is no such thing as a legitimate business transaction if the mother of the businessman is not in attendance. In other words, if you think you just struck a deal with one of the locals, if his mom was not physically present in the room, it was an illegal transaction.

In the meantime, however, I’m still holding out for the (albeit remote) possibility of finding a gold bar right here where I am, in one of the most beautiful places in the world, washed up on my beach from the shipwreck. Wouldn’t that just be peachy.