Acoustic Steven

Posted by SPaul on April 17th, 2009

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AAM’s very own recording superstar Steven Capozzola has a new set of music out. 

In addition to his day job at AAM and ManufactureThis, Steven is an exceptionally gifted lyricist and performer–Woody Guthrie and the Beatles with a splash of Nigel Tufnel rolled into one package.  If he doesn’t manage to achieve their fame, it will be solely a result of Steven’s modesty, because his music is terrific.

Check out Steven’s MySpace page for the tunes, and follow his exploits on Twitter

As ABBA once sang, thank you for the music, Steven. 

The Early Shift

Posted by SPaul on April 17th, 2009

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Paul Krugman and Nouriel Roubini still see tough times ahead for the economy.

Chinese-made drywall showing up in American homes is turning out to be just plain nasty.

Manufacturing is expected to continue its contraction for up to six more months.

The Early Shift

Posted by SPaul on April 16th, 2009

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The Obama Administration does not name China as a currency manipulator.  Coverage here and here.  AAM’s statement here.

The Granite City pipe controversy makes a national splash with a Lou Uchitelle treatment in the New York Times.

The Obama Administration will unveil its high speed rail plan today. 

The Early Shift

Posted by SPaul on April 15th, 2009

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Two deadlines today.  One is well known–federal income taxes–which more people are preparing on their own

The other deadline is for the Treasury Department’s semi-annual report on currency manipulators.  Will the Obama Administration designate China as a currency manipulator, will they delay the report (as often happens), or will they continue the pattern of denial begun by the Bush Administration?

Key manufacturing data will be released today.  It may be a better indicator of the recession’s bottom than yesterday’s retail sales numbers

Down and Out Index: Oklahoma, Tennessee, Mississippi, New York, Wisconsin, Georgia, California

Posted by SPaul on April 9th, 2009

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Stillwater, Oklahoma: Recreational boatmaker Mercury MerCruiser lays off 135 workers, citing continued weak demand.

Greeneville, Tennessee: Manufacturer Parker Hannifin plans to cut 120 workers on May 13.

Columbus, Mississippi: Ceco Building Systems reduces its workforce by one-third. 

Junction City, Georgia: Motorhome manufacturer Country Coach gives pink slips to 460 workers.

Baldwinsville, New York and Watertown, Wisconsin: Plastic bottle maker Ball Corporation shutters two facilities, leaving 165 out of work. 

Shasta County, California: Lehigh Southwest Cement Company cuts 40 employees, half of its hourly workforce.

Pipe Dreams in Granite City

Posted by SPaul on April 8th, 2009

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Yesterday, I joined more than 1000 people–mostly laid-off Steelworkers and their families–in a dusty, windswept lot where piles of subsidized, imported steel pipe from India destined for a major oil pipeline served as the backdrop. 

Just a mile or two away stood the Granite City, Illinois works of United States Steel, a massive facility that is now shuttered because of the recession.  When it is operating, the mill employs over 2000 workers and makes a quality, competitive product. 

The familiar noises of a busy, industrial town have vanished in Granite City.  The hum of machines is nowhere to be found.  The downtown is now a ghost town.  It would be easy for the laid-off workers and their families to simply stay at home, hang their heads, hope for the best, and complain about the hand they’ve been dealt. 

But that’s not what I saw.  Instead, I saw hundreds and hundreds of workers and family members gathered together, unified in their call for jobs, justice, and a change in the way we do business.  They were angry, but not xenophobic.  Upset about unfair trade, but unafraid to compete.  Not asking for a bailout, only an opportunity.  Concerned about their own jobs, but downright scared about the future their children and their community might face.

Across the Mississippi River from Granite City lies the famous Gateway Arch in St. Louis.  To me, the Arch is a symbol of hope, of a new day dawning, of a call to move forward.  It’s the gateway to what’s possible in America, one of the simplest yet most meaningful structures in our nation.  And it’s made with a lot of steel:  stainless, rebar, and carbon.

All of these things are visible from 15,000 feet in the air, in a plane on my way back to DC:  the massive Granite City works, the piles and piles of green pipe, and the Gateway Arch.  But you can’t see humans from that altitude.  Yet I’m afraid that’s the view too many Americans have of our manufacturing crisis.

The pipe for TransCanada’s oil pipeline project should have been made in America.  But TransCanada chose the low road and selected the subsidized Indian pipe for the vast majority of the project.  While Granite City doesn’t make pipe, it is capable of making the hot-rolled steel that eventually becomes the pipe.

It might be too late to ditch this pipe.  But it’s not too late for TransCanada to make the right call on its new Keystone XL pipeline.  And it’s not too late for federal, state, and local officials to tell TransCanada that if the company wants to secure permits and right-of-way, they need to make the pipe in America. 

Besides pipe, we make a lot of other things with steel.  Everything from durable goods, automobiles and commercial jets to the tanks and warships that keep us safe.   But we are losing the capacity to manufacture at an alarming rate.  Our nation has lost 1.5 million manufacturing jobs since the recession began in December 2007.  Forty thousand factories have closed over the past decade. 

One lesson of the recession is that we need to make more things here.  Developing new technology and consuming alone do not make for a stable economy, but that’s been our economic strategy for the past decade.  Manufacturing generates real wealth, family-supporting jobs, and exports.  It does matter where things are made.

Granite City is ground zero in the crisis in manufacturing.  To recover, it will take a trade policy that insists on reciprocity and fair play.  India subsidizes its steel and should be held to account.  Other countries that cheat should understand the consequences.  It will take smarter domestic policies on health care, taxes, and energy to make manufacturing more competitive.  Finally, it will take sizable investments in infrastructure, innovation, and education.  This will only come about through the initiative and collective action of Americans across the political spectrum.

But it starts with a single act.  Paul Revere’s “midnight ride” sounded the alarm in the American Revolution.  Ironically, he was also a famous metal manufacturer after the war.  Perhaps Granite City’s Paul Revere is Jeff Rains, a retired Steelworker.  On his way to a meeting in February, Jeff saw the green pipe from India loaded on rail cars, took a couple of pictures, and alerted his local union.  The rest is now history.   

We owe it not just to Jeff Rains and the thousands of unemployed workers in Granite City, but also to our children and grandchildren to make things in America again.  American manufacturing and American workers will do their part by producing quality, competitive products.  We’ll even remind people why it is so important to make things here.  We need a government as willing to fight for manufacturing as it is willing to give out $700 billion to Wall Street.  The difference is this:  we don’t need $700 billion, we just need a level playing field. 

Down and Out Index: North Dakota, Kentucky, Ohio

Posted by SPaul on April 8th, 2009

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Not even the green economy is immune to layoffs.  100 workers at wind-turbine manufacturer DMI in West Fargo, North Dakota received pink slips this week.

Toothpaste tube maker Betts USA is closing its Florence, Kentucky plant, leaving 114 without jobs. 

Mass layoffs in Ohio more than doubled to 41,000 in the last quarter of 2008 based on figures released yesterday.  That doesn’t include many steel and auto layoffs that have been logged in 2009, or layoffs of under 50 people. 

Autos

Posted by SPaul on April 6th, 2009

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President Obama weighed in on Sunday with an op-ed titled “We cannot let auto industry vanish” in 11 newspapers in auto-dependent communities across the nation.   

We couldn’t agree more. 

Hopefully the Administration’s auto task force will take some of Rob Scott’s advice at the Economic Policy Institute and call on the Big Three to invest in America. 

Down and Out Index: Colorado, Pennsylvania, Iowa, Missouri

Posted by SPaul on April 6th, 2009

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Iconic brand names are slashing jobs across America in battleground states. 

 Walker Manufacturing of Colorado, maker of lawnmowers, is laying off 10 percent of its workforce and will shut its plant down for three weeks. 

International Paper will close its box plant in Fairfax, Missouri, putting 100 people out of jobs. 

Cannondale, a popular bicycle manufacturer, is shifting 200 Pennsylvania jobs in Bedford to Taiwan. 

HON, a well-known office furniture and equipment maker in Muscatine, Iowa, is laying off an undisclosed number of workers.  ManufactureThis procured some of its Made in America office furniture from HON in 2007. 

New AAM Report on China and Pollution

Posted by SPaul on March 23rd, 2009

China Report 

I was honored to join Leo Gerard, President of the United Steelworkers union, as well as Terrence D. Straub, Senior Vice President of United States Steel, for a media call to release a new Alliance for American Manufacturing report titled “An Assessment of Environmental Regulation of the Steel Industry in China.”

The report, which you can download here along with a summary and charts, is the most comprehensive and authoritative account to date of environmental practices in China’s steel industry.  Put simply, the low level of regulation, and the lack of enforcement of those inadequate regulations, harms human health, contributes to global warming, distorts trade flows and costs the U.S. jobs. 

We hope Washington is listening as the debate on climate policy gets started.