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u.s. machine-tool makers split on renewing import restraints

by:SNK     2019-09-19
A changing machine
Tool makers here are taking photos in its mainstream America. S.
Competitors have sparked a heated debate about how Uncle Sam should nurture a struggling but strategic industry.
Paint yourself as the frontier of metal
Cut business, Hurco Cos. Inc.
Oppose the efforts of their own industry to win the continuous protection of Far East imports and call for No. holds-
No competition
As the deadline for December approaches, Hurco\'s unusual stance has angered lobbyists in the industry.
31 the \"voluntary\" limit on the machine expires
Import tools from Japan and Taiwan.
Hurco\'s critics belittle it as a small player who just wants to buy cheap overseas machine hardware ---
When tanks, planes and other defense tools need to cut metal, it is not the kind of company that can be relied on.
Executive of one of America\'s largest machines
Tool manufacturer Cincinnati Mira clone
Accusing Hurco of spreading \"vicious lies\" in its highly Open campaign against import restrictions \".
But, as a leader in manufacturing computer control, computer control tells today\'s sophisticated machine tools what to do, says Hurco. S.
Trade policy has made it high without knowing it.
Low technology and protection
Technical part of domestic industry-
An American to JapanS.
Manufacturing based on boot.
This is a compelling argument for some.
\"I think it\'s refreshing,\" said analyst F . \"
John Mirek, who tracks machine tools for Kemper Securities Group Inc. from Milwaukee
\"They \'ve put the money on their lips and improved the speed and accuracy of the machine, and they want to see the restrictions disappear so they can compete face to face.
\"It\'s rare for a company to break the rankings so loudly with their own industry.
But this family quarrel reflects today\'s brutal climate and it provides a glimpse into the machine
Tool manufacturers rush their own way to survive in the global market, because their key but few --known products.
Background includes the competitive impact of Japanese machines
Tool manufacturers have now set up factories in the United States, and ironically they support the extension of import restrictions because it also protects them.
Despite the machine-
Tool chaos could only be America. S. pawn in trade-
The policy debate around big fish such as agriculture and automobiles raises serious questions about the country\'s shrinking manufacturing base and how to punish the United StatesS.
Competitive power.
Shift of manufacturing to non-manufacturing
The Coast site has turned the United States into a small user of machine tools: the United States consumes only 10% of the world\'s output and only produces 7% of the machine tools. Even the exportdriven U. S.
Part of the recovery in manufacturing over the past few years has been achieved through the use of foreign technologies, including Japan-
Designed machine tool.
This creates a vicious circle of machines --
Brian D. , chairman and chief executive of Hurco. McLaughlin.
Describe Hurco as more international than other American companiesS. firms--
Half of the revenue comes from overseas customers. -
McLaughlin believes that the United StatesS. machine-
The tool market has become so small that domestic companies can only become bigger and stronger and achieve technological leadership if they succeed abroad.
\"VRAs is preventing us from selling products overseas,\" McLoughlin said . \" He refers to voluntary restrictions on imports.
In fact, the import problem is bigger than the industry.
Less than 600 machines
Tool company with only 70,000 employees-
Down 40% from ten years ago. -
Operating in this country today
Last year, GM shipped $4 billion worth of products, or about 12 days.
But these complex machines cut and shape components that make up any metal ---
Internal organs of almost all machines.
So the machine-
Tool industry has long been regarded as the foundation of industrial economy and national defense.
In the 1980 s, the Japanese took half of the U. S. by using their better technology, spare capacity and cheap yen. S.
Machine tool market.
In response, the Reagan administration decided in 1986 to protect domestic industry as an important part of the \"American economy\"S. defense base.
The White House negotiated a five-deal
VRA years in Japan and Taiwan, restricting the import of lathes, milling machines, machining centers and punching machines-
About 40% of equipment in the United StatesS. machine-tool output.
The agreement ended on December.
31, the aim is to give the domestic industry time to rebuild and invest in new equipment and technologies in order to combat the growing dependence on foreign machine tools. Since then, U. S.
Some machine tools have been restored, but the reason is controversial. The machine-
Tool lobby groups believe that the decline in foreign market share since 1986 is caused by import restrictions.
Still, Hurco and some economists say the weakness of the dollar against the yen has more to do with Japan\'s decline ---and the U. S.
Return of industry profitability-
Japanese equipment costs are higher than domestic products.
Recently, the recession has cut machines.
Providing tool sales for everyone to drop imported products below quota makes VRAs irrelevant now. But a three-
The surge in new orders as of August increased the risk as of December. 31 approaches.
The industrial trade group cited data showing that its members have been increasing capital expenditures and improving their competitive power in the past five years as they expected.
But the machine
The tool maker says the work has not yet been completed.
They demanded protection for up to five years.
Show off to the Bush administration with a long list of weapons systems provided by the United StatesS.
Machine tool of war in Iraq, national machine tool manufacturer Assn.
Said: \"The serious problems facing the United StatesS. policy makers . . .
Is whether companies that help America win in the Gulf War will provide the weapons needed to win America\'s next conflict.
\"As for Hurco, it was fired by Vice President James Mack.
The chairman of the government affairs of the trade group, as a person in \"Indy, he was angry because he could not bring Taiwanese steel that was cheap enough to control the situation.
\"The White House has yet to decide what to do with VRAs, a government spokesman said last week.
Founded in 1968, Hurco said it was the first company to use a microprocessor on a microprocessor in the United States. S.
Since then, the electronic \"brain\" of machine tools and machine tools has always been its strong point.
The \"iron\" or hardware imported by the company, which is equipped with its Indianapolis-
Computer digital control.
The result is mid
Known for its easy-to-use and affordable size machines.
Hurco\'s controls are highly valued and analysts say its sales rank first.
2. lag behind fannake Co. , Ltd.
Japan is the leader in world control.
Its narrow product line and the practice of imported hardware equipment Hurco
Production line companies like Cincinnati mirakon, in addition to making the most of their control, buy domestic hardware for their wider range of machines.
In this dispute, because of past reliance on Taiwanese hardware, Hurco has great difficulty: VRA forces it to get iron elsewhere at a higher price.
This reduced its profit margin by 15% and affected countries entering the United States. S.
Hypocrisy of \"free trade\"
The company tells anyone who is willing to listen.
Compared with the software and controls developed by Hurco itself in joint ventures with semiconductor giants Intel, Texas Instruments and others, the company and its supporters say the hardware is just a commodity that is not worth trade protection.
Hurco\'s McLaughlin said: \"Keeping yesterday\'s technology in a\" museum \"composed of companies is no longer able to compete worldwide, which is in no way in line with our
Daniel J.
Meyer, chairman and chief executive of mirakhole, Cincinnati: \"Hurco likes to reduce (hardware)
But it\'s like saying that we should import aircraft from Taiwan and add avionics here.
The hardware is very high-tech. \"The give-and-take goes on.
Hurco has accused some of the industry\'s loudest VRA supporters of \"cynical\" buying control systems ---
Main exemption from import restrictions--from Japan.
This is a mockery of the people of the country.
The company said it defended the restrictions on imports.
\"This is one of their most vicious lies,\" Christopher C replied . \"
Vice Mayor of Cincinnati mirakon Coles
President of Strategy and Business Development.
It does use foreign control. -
Usually comes from the industry leader, finaco Co. , Ltd. of Japan--
He said it was about 5% of the time when the customer insisted.
Meyer said, \"Our control department may be equivalent to the entire Hurco company.
\"The controls they are arguing about enable the operator to draw the dimensions of the helicopter blades on the screen of a powerful personal computer that indicates the cutting device of the machine, improve the accuracy of the machine tool to a new level.
Hurco and one of its main competitors 1982 start-
Fardar Engineering Co. , Ltd.
North Hollywood has become the rising United States. S.
In the 1980 s, the stars of the machine tool world looked for ways to compete with low
Not only from the Far East, but also cost producers in Mexico, Turkey, Poland, Germany, Switzerland and other countries.
However, there is a big difference between Hurco and Fadal: family
The California company not only developed its own computer control system, but also acquired hardware from the United States. S. foundries--
And try not-Machine decoration.
Claiming not to care about VRA, France
Adrian Kassin, the owner, said: \"I don\'t need it to compete.
But in principle, we will not import iron.
America\'s ability to cast is losing, which is crucial.
We only buy domestic castings.
Richard T, Hurco investor, responded.
Nier: \"We \'ve been looking for irons all over the country and it\'s more expensive.
If it does not work economically, it will not be used for defense purposes.
When the debate was fierce, several Japanese machinestool makers--
Reflecting Japanese automakers, they responded to the VRA on 1980 cars by building factories here ---
They have started building their machines in North Carolina and Kentucky.
Now they are quietly supporting the continuation of the VRA as it protects most of their share in the USS. market.
The arrival of Japan may not please the United States. S. machine-
Tool manufacturers on the market, but this is temporarily helpful on the political stage, as it shows that VRAs have played a role: they have created new capabilities for making machine tools in the United StatesS.
Soil after many years of contraction.
Foreign machine tool manufacturers, mainly machine tool manufacturers from Asia, have gained a greater share in the United States. S.
The market in early 1980 was largely because of the time
Strong dollar, lower cost, better technology, and trading behavior that some people think is unfair.
However, the share of imported goods has stabilized in recent years.
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