Sorry, for my extended absence. After returning from vacation, our blog was attacked by especially aggressive spammers. We had to put into place sufficient protection to ensure the viewing safety of our friends who visit the Blog.
I am pleased to restart my Blog. More information to follow. Thank you for your patience.
History is full of stories detailing the failed predictions of esteemed experts in a particular field of study or endeavor.
On October 20th, 1929, the noted Yale University economist Irving Fisher declared that “stock prices have reached what looks like a permanently high plateau.” Nine days later (October 29th, 1929) “Black Tuesday” arrived; the stock market crashed and America and the world were plunged into the worst recession in history.
I found this story today to be amusing and a gentle reminder that my personal views regarding markets and trends are my best guess. Tomorrow’s reality is frequently different than today’s predictions.
Visit anecdotage.com for additional interesting anecdotes.
Guardian Metal Sales closed their doors a few months ago; moving into liquidation. The liquidation process is complete as machinery and other incidental assets were sold to another Chicagoland based Servicenter. As the items are moved, the end of a once proud and respected metal servicenter is complete. Our best wishes to the Bohnen Family.
The obvious effort here by Platinum will be to create a stable, smaller, capable parts supplier to US based automakers. This goal will call for additional cuts in plant and personnel as Delphi works to emerge as a viable parts supplier with desirable returns for the Platinum investors.
What I believe remains to be seen is how many smaller auto parts suppliers, especially Tier II, III, and IV can survive the current production drops of GM and Chrysler. Additionally, those who are on the edge will be especially vulnerable to payment delays which are the norm during a time of ownership transfer. This latter issue is what worries me most; how long can the smaller, undercapitalized auto suppliers last? Many won’t. Yes this will result in delays and line outages. However, since it seems the prospective car buyer is not rushing to the showroom… intent on purchasing a car today. Rather, there is a nagging lethargy tothe potential car buyer as they approache the showroom today. Until automaker inventories decline significantly I believe most auto producers are more focused on their own survival. This focus means that long term relationships get discounted in our current environment. Sadly be prepared to hear more comments like, ‘What have you done for me lately?”
ABC Metals continues to focus on mutual survival techniques; resulting in ’Win/Win’ scenarios not ‘Take it or Leave It’ conflicts. Call us today and let us ’Uncoil the Power’ of ABC Metals, together.
Inside Indiana Business- an online business Journal is reporting today that GM and the UAW have reached an agreement that is expected to result in GM assuming ownership og Delphi Electronics & Safety in Kokomo.
Delphi continues to mute it response regarding what plants GM is interested in purchasing. While this would be good news for Indiana; one still wonders what will remain of Delphi after June 1st.
ABC Metals as a copper and brass flat-rolled supplier remains keenly interested in the financial health and future of the US automotive supply base.
I have spent the past two days in Scott Brass’s former Mishawaka Plant reviewing and bidding on equipment. It was a poignant reminder of the difficult environment in which US Manufacturing finds itself. Not more than a year ago, I walked the aisles of that once bustling location, watching material being rolled, tinned, slit and shipped. Then what I observed yesterday were empty spaces, save the opportunistic buyers present to bid. I was particularly saddened to see two Bell Annealing Furnaces with peripheral equipment sold for less than $3K. What a waste- as they surely are headed for the scrap heap. Still there are lessens to be learned here. Remain proudly independent, Manage Your Risk, Protect Your Cash, and thus remain the Boss- don’t let the bank run your business.
