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Another big satisfaction for MG! Larsen & Toubro, one of the largest companies in India purchased a heavy duty 3 roll double pinch plate bending machine.
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“While many districts described the improvements as only moderate, most districts stated that gains were widespread across sectors,” the US central bank said in its Beige Book survey released on Wednesday. “Manufacturing continued to lead, with virtually every district citing examples of steady improvement, often with reports of increased hiring.”
Manufacturing activity increased across the board, with strength in industries including auto and auto parts, commercial aircraft and high-tech goods.
Despite the general improvement, “uncertainties remained high” in many districts, the Fed said, with seven regions reporting sales and production disruptions in the wake of Japan’s earthquake and nuclear crisis. Businesses also reported uncertainty over government spending as Congress battled over the 2011 federal budget.
While wage pressures were “weak or subdued” in most of the 12 districts, businesses reported upward pressure on prices due to higher commodity costs, particularly for energy and raw materials.
Input prices rose, especially for petroleum, agricultural commodities including cotton, and industrial metals. The surging cost of oil spurred shippers to impose fuel surcharges in some regions as well. Signs that companies could pass cost increases on to their customers were mixed, the report said, with manufacturers facing less resistance than retailers or builders.
Retail sales improved across most districts as consumers spent more, except in Boston, where sales were mixed, and Richmond, where sales were weak. Car sales increased, except in Richmond and Chicago, but businesses in several regions were worried about the impact of the Japanese crisis on the supply chain.
Job growth was generally stronger, with eight districts reporting increased or modest improvement in employment activity. But hiring was limited or delayed in Philadelphia, Cleveland and San Francisco and conditions were mixed in St Louis.
The weak housing market continued to weigh on the economic recovery, with demand for single-family homes little changed or weaker across all districts. Commercial real estate was also weak, but seven districts did report “slight improvements.”
The Fed’s report follows growing signs of an accelerating recovery on several fronts. The labor department earlier this month reported the economy added a stronger-than-expected 216,000 jobs in March, while the latest purchasing managers’ index showed the manufacturing sector continued to expand over the month.
Published: April 13 2011 20:21 | Last updated: April 13 2011 20:21
By Shannon Bond in New York
Although much can be done to separate the myth from the actual man, here is no question that Paul Revere was a true American patriot. A successful silversmith by trade, Revere also became increasingly active in a political group called the Sons of Liberty, which is best known today for having staged the Boston Tea Party. What is less known about Paul Revere is that he was also one of the very first Americans to recognize the potential for large-scale manufacturing of metal. If anything, Paul Rever seemed to have a real knack for being in the right place at the right time – and for making the most out of it.
When the British arrived on American shores on the night of April 18, 1775, Paul Revere was in fact one of two men sent out to warn others, on his famous “Midnight Ride”. However, he never yelled out “The British are coming!”, for three reasons: one, the success of his mission that night depended on secrecy; two, the American countryside was swarming with British army patrols; and three, at that time, Americans were all still technically British subjects, so the warning, even if called out, wouldn’t have made any sense at all.
The fact of the matter is, Paul Revere performed his “Midnight Ride” in order to warn others of the British troops (then known as the “Regulars”) crossing the Charles River. More specifically, his mission was to warn his Sons of Liberty pals John Hancock and Samuel Adams of the movements of the British Army, which would likely have resulted in Hancock and Adams’ arrest as well as the seizure of their weapon stores in Concord if not forewarned. Protecting these two patriots proved to be a valuable task, since (among many other valuable contributions) Hancock famously went on to sign his name on the Constitution and Sam Adams heroically went on to lend his name to the best American-made beer to date.
According to actual eye-witness accounts, rather than yell out his famous (and totally false) phrase, Paul Revere most likely whispered, “The Regulars are coming out.” This information was then passed on to other “midnight riders” until about 40 of them were riding about, spreading the news as fast as their horses’ legs could carry them. This was not something that Paul Revere gained a lot of notoriety for at the time. However, about 40 years later, a very famous poet named Longfellow decided to immortalize the Midnight Ride with a poem titled “Paul Revere’s Ride”, which guaranteed Mr. Revere permanent celebrity status in the annals of American patriot history.
After the American Revolution, times were tough in the brand-new United States – in fact, a depression ensued. Realizing that his silver trade wasn’t cutting it anymore, Paul Revere opened a hardware and home goods store, meanwhile also extending his interest in metal work beyond silver and gold. 11 years after the revolution, he opened an iron and brass foundry in Boston and tapped into a very hot market for church bells. A religious revival called the Second Great Awakening was sweeping the country at the time, and if nothing else, Paul was one to recognize an opportunity. Working with two of his many sons, Paul Jr. and Joseph Warren, he created a firm called Paul Revere & Sons, which also did a substantial amount of business by supplying shipyards with iron bolts and fittings for the new naval fleet (“Old Ironsides”) and other ships.
Ultimately, Paul Revere’s firm produced over 900 bells, for which castings he became very well-known for in the industry of his day. In 1801 he opened North America’s first copper mill, and became a pioneer in copper plating production. Although his plans for business were slowed down by a shortage of adequate money in circulation, his copper and brass works eventually grew, through sale and corporate merger, into a large national corporation, Revere Copper and Brass, Inc., which still operates to this day.
Paul Revere died at the age of 83 in 1818, in his home in Boston. He fathered a total 13 living children during his life, and he himself was one of 12 siblings. With that many children, it seems almost surprising that only two ended up going into business with him – but it also may help to explain his drive to continue to flourish even in the middle of this country’s first real depression.
When it comes to Paul Revere, the man is even better than the myth.
-Anja Wulf
The AP (4/7, Rugaber) reports, “Unemployment rates are falling in most metro areas across the country, suggesting that recent nationwide gains in hiring are widespread and not limited to a few healthy regions.” According to the Labor Department, “more than three-quarters of the nation’s 372 largest metro areas reported lower unemployment rates in February than the previous month,” while “more than 300 areas added jobs in February compared to the previous month.” Moody’s economist Marisa DiNatale said the rise in employment opportunity is “definitely becoming a lot more broad-based.”
Bloomberg News (4/7, Ryan) reports, “UK manufacturing growth unexpectedly stalled in February as declining production of goods from chemicals to plastics dented the industrial recovery.” This is according to a report from the Office for National Statistics, the text of which “casts doubt on the strength of the economy’s rebound from a contraction in the fourth quarter at a time when higher raw-material costs threaten to squeeze manufacturers’ margins,” according to the article. “We’ve been skeptical that the recovery in manufacturing can continue at the pace it has been,” one analyst said, adding, “It will still have a good year. This outturn probably reflects monthly volatility.”
The AP (4/7) reports, “British industrial production fell 1.2 percent in February from January, an official report said Wednesday, marking the largest monthly fall since August 2009 and far worse than analyst expectations for an increase of 0.2 percent. The Office for National Statistics said a 7.8 percent drop in oil and gas extraction was the main reason for the fall, while the manufacturing sector was flat.”
The Financial Times (4/6, Pimlott, Subscription Publication) quotes Simon Kirby of the National Institute of Economic and Social Research, who said, “We had the opening salvo of a VAT rise [in January] and that’s it so far, and inflation is likely to dampen spending from now on.” Kirby added, “That’s why the figures are worrying, because of what the recovery will look like for the rest of the year.”
Bloomberg News (4/7, Black) reports, “German factory orders rose almost five times as much as economists forecast in February, indicating growth in Europe’s largest economy gathered pace in the first quarter.” The German Economy Ministry said that “orders, adjusted for seasonal swings and inflation, gained 2.4 percent from January, when they jumped 3.1 percent.” Experts had predicted a gain of 0.5 percent. “With German companies stepping up investment and hiring to meet booming export orders, the European Central Bank is poised to raise interest rates tomorrow to keep a lid on inflation.” Economist Klaus Baader said, “This points to continued strong growth momentum in manufacturing output for the next several months.”
From SME Daily Executive Briefing 4/7/2011
Iron is the most-used metal on this planet. It is also the most common element on this planet. It forms much of the earth’s inner and outer core as well as its crust. Iron is a prevalent and necessary element for life on this planet, including human life. Ironically (no pun intended by use of this word), iron deficiency is the most common nutritional deficiency known to humans. Iron deficiencies can cause anemia, slowed motor and mental function, slow physical growth and development in children, and premature births in pregnant mothers.
The prevalence of iron is not limited to Planet Earth. It is, in fact, the sixth most abundant element in the entire universe. Don’t ask me how they figured that out; but according to the Powers That Be, this is a scientifically proven fact.
The earliest archaeological evidence of man-made iron items go back over 6000 years. Iron tools and beaded jewelry daring back to 4000 BC have been found in the tombs of ancient Egyptians. Iron was also a preferred choice of metal for ancient weaponry.
Most interestingly, the first source of iron did not come from this planet. It came from outer space.
That’s right: it’s called meteoric iron. In fact, in spite of the abundance of iron on this planet, humans first worked meteoric iron before they ever realized that an abundance of more “locally grown” supplies was also available. In fact, because they observed the meteorites falling from the sky, the Egyptian name for iron is ba-na-pe, meaning “metal of heaven”.
Iron comes to our planet from the heavens in the form of highly recognizable meteorites. Iron meteorites are thought to be the fragments of the cores of larger ancient asteroids that have been shattered by impacts. Because iron meteorites are very distinctive and easy to recognize, they can be readily identified even if they are not a hugely abundant item on this planet. It would take humans quite a few more years before they realized that the same element which came down from the heavens already existed in significant, if less easily identifiable quantities all over Planet Earth.
The fact that the first iron used by humans came from the sky is accurately reflected in a number of well-known myths and legends. Probably the most famous of all is the tale of Excalibur’s brother sword, Clarent – more commonly known as the Sword in the Stone. According to this legend, a meteor, in the shape of a red dragon’s head, fell to earth, conveniently landing at the precise moment when Uther, Arthur’s father, was given command of an army after its last commander had fallen. A red dragon’s head also happens to be the symbol of Briton, which may help to explain why witnesses present thought it looked a lot like a dragon’s head. The meteor’s appearance was taken by Merlin as a sign that Uther’s destiny was to become King of All the Britons. Merlin had the meteoric metal forged into Clarent, the magic Sword in the Stone, and gave Uther the surname Pendragon, which is Welsh for “dragon’s head”.
Let’s not forget about Zeus’ thunderbolt, which was made by our good old friend Hephaestus (see last week’s blog article, “Hephaestus: the original Man of Steel”). Hephaestus made everything out of iron, including Zeus’ super-powered thunderbolt. Considering that Zeus’ power was attributed to come directly from the Heavens, meteoric iron would be the most fitting material for the earthly symbol of his power.
In the sense that our entire way of life would be threatened if not destroyed if we didn’t have iron, this humble and abundant metal really should be viewed as the most precious of all on this planet. And – who knows – based on its abundance throughout the known universe, maybe there’s some other intergalactic blogger out there who’s writing the same thing right now.
-Anja Wulf
CNBC (3/28, Gewirtz) reported, “In another sign the American economy is on the comeback trail, a new survey from KPMG shows optimism is improving among US manufacturing and service industry executives.” The survey found that “68 percent of manufacturing executives believe business activity will be higher in the next 12 months,” a gain of 11 percent from October of last year. And “41 percent of those same executives say they plan to hire more in the weeks and months ahead,” up from 28 percent in the same time period.
The Ecommerce Journal (3/29) reports, “In terms of revenue 65% of manufacturers surveyed by KPMG expect revenues to rise in the next year. ‘American manufacturing is on the rise because companies are rebalancing, and it is pretty clear demand is picking up nationwide,’ said Lynne Doughtie, KPMG’s National Managing Partner for Advisory Services.”
Manufacturing Economic Activity At Highest Level Since 2004. The Boston Business Journal (3/28) reported in its “BBJ Morning Buzz” blog, “The manufacturing sector singularly contracted over the past several decades,” a contraction that was hastened by the recession. But now “a number of area manufacturing firms are sporting some new faces on their floors as the sector undergoes something of a recovery.” According to a recent article in the Sun Chronicle, “The Manufacturing Institute for Supply Management reported that nationally, economic activity in the manufacturing sector grew in February for the 19th consecutive month and reached its highest level since May 2004.”
From SME Daily Executive Briefing 3/29/2011
In an opinion article on the New York Times (3/28) website, Allison Arieff writes that in contrast to the image of decline people often associate with manufacturing in the US, “there are many parts of this country where manufacturing is very much alive, albeit in a different form.” Arieff focuses on the work being done by San Francisco’s SFMade and New York’s Made in NYC, “geographic ingredient branding” groups which “are increasingly able to share success stories of how manufacturing has developed new models for doing business in the 21st century.” Part of these companies’ success stems from a growing consumer desire to get locally produced goods, as have “growing consumer demand for greener, more ethically produced products, along with skyrocketing unemployment and nervousness about globalization.” Arieff argues that it is “time to rethink, and indeed rebrand, American manufacturing.”
From SME Daily Executive Briefing 3/28/2011
Back in the bad old days of Greek mythology, Hephaestus was the name of the god of fire, in particular the fire of the blacksmith. This made him the patron of all craftsmen, as well as the god of volcanoes.
In terms of his personality, Hephaestus is an interesting study in contrasts. By many accounts, he was a jealous lover and gained his wives not through charm but through guile and cunning. Other accounts describe him as a gentle, sensitive “peacemaker” type. By all accounts, he was not considered to be a “hottie”. Additionally, he was the only Greek god to have a physical disability: he had clubfeet that faced backwards. For this reason, he was rejected by his mother, Hera, who threw him into the ocean in the first documented case of postpartum depression. Luckily, he was rescued by the Nereids, who took care of him for nine years in their caves and kept him from further harm from his mother.
During this time, Hephaestus started tinkering with metal, making jewelry from bits and pieces of metal and coral that he found underwater. Because they didn’t have wheelchairs back then, he also built two golden robots to help him move around. This engineering feat was followed by his building of the twelve thrones of Olympus. By now he was in need of assistants, so he hired a crew of eager one-eyed goonies known as the Cyclops, who helped him create beautiful decorative iron and jewelry for his surrogate mothers.
It wasn’t long before his birth mother Hera caught wind of the beautiful jewelry that her contemporaries (female goddess-types) were wearing. Never to be left out of a trend, she enquired as to the maker of the jewelry and learned that it was her own son, at which point she decided that the physical beauty he lacked was compensated by the beauty he was able to create, and so she forgave him. The conversation must have gone something like this:
(Hera): “Dear son, I forgive you for being ugly and I no longer regret that you didn’t die when I threw you from the heavens into the ocean. Because I have now forgiven you, I command you to return to me at Olympus, your birth place.”
(Hephaestus): “Wow mom, although I am truly overcome with your sudden change of heart and your immense graciousness, I kind of like living here with my bevy of mermaid-like surrogate moms so I won’t be joining you anytime soon.”
So Hera did what any responsible mother would do: she sent Dionysus, Hephaestus’ brother, to get him drunk on wine, who then slung him onto a donkey, which he then rode back to Olympus, where he officially joined the ranks of the gods.
Now that he was a god, his mother rewarded him with his very own massive underground workshop, fully equipped with all the latest metal fabrication machinery. In fact, C Marshall Fabrication is rumored to still have a few old invoices from Hephaestus in its archives (some of the invoices are made out to Cyclops, but keeping a low profile was typical “Heph”, for those who knew him). It was in this workshop that Hephaestus and his one-eyed helpers continued to create beautiful jewelry for all the Olympian goddesses, as well as weapons, furniture and armor.
Some of Hephaestus’ most famous creations include:
-Thunderbolts for Zeus
-Athena’s shield
-Arrows for Eros (the god of love)
-The chariot for Helios (the sun god)
-The invincible suit of armor for Achilles (too bad it didn’t cover his heel)
Hephaestus is less known for also having created the first woman. This turned out to be a total disaster and proves that he should have stuck to metal fabrication. The name of the first woman, whom Hephaestus fashioned out of clay, was Pandora. Possibly because she was ordered from the back of a comic book (like those Sea Monkey ads – remember them?), she came with one (1) FREE supernatural jar, which contained all the evils of the world and which she then, in the first documented case of PMS, promptly released on all of mankind.
C Marshall Machinery has taken these lessons to heart, and that’s why we stick to what we’re good at. If you are looking for a woman or a golden robot, check in at Olympus and talk to Hephaestus and his team of Cyclopes. On the other hand, if you are in the market for top-notch metal fabrication machinery, give the folks at C Marshall a call.
-Anja Wulf
Despite the slow overall recovery, the factory jobs picture in February was as strong as it’s been in any month since 1973.
It’s possible that January’s massive storms led to more hiring in February due to pent-up demand. But company managers say, and data show, that hiring is on the rise in the manufacturing sector.
Nationally, the Manufacturing Institute for Supply Management (ISM) report said 56 percent of factories were keeping employment level, and 35 percent added people to their staffs in February. Those kinds of readings have not been seen in 38 years.
To contact the reporter on this story: David Wilson in New York at dwilson@bloomberg.net
“U.S. manufacturing is booming” and helps explain why stock investors shouldn’t panic over Japan’s nuclear disaster or the Middle East’s conflicts, according to Edward Yardeni, president and chief investment strategist at Yardeni Research Inc.
Growth has been “surprisingly robust” and may be accelerating, Yardeni wrote today in a report. He cited the Federal Reserve Bank of Philadelphia’s factory index for March, which showed the fastest expansion since 1984. The indicator for eastern Pennsylvania, southern New Jersey and Delaware climbed to 43.4 from 35.9 in February.
In February, the ISM index rose to 61.4, matching its highest level since 1983. Readings greater than 50 point to expansion. The indicator has risen for seven straight months.
“It is becoming increasingly obvious” that U.S. factories are taking part in a global manufacturing surge that includes countries such as Germany and South Korea, Yardeni wrote.
The growth is among a dozen reasons not to panic over what’s happening in Japan and the Mideast, the report said. Others include “super-normal” earnings growth, a rebound in employment, a pickup in takeovers and “extremely stimulative” fiscal and monetary policy.
By any measure, the recent earthquakes and tsunami in Japan have been disastrous. Even so, it is amazing how many of the tall structures in Japan remained standing. Many more lives would have been lost if Japan’s infrastructure and building codes were less stringent.
To show the importance of quality construction and building codes, here are some interesting — and chilling — statistics to compare:
Haiti had a 7.0 earthquake on Jan. 12, 2010. Its epicenter struck near its capital, Port-au-Prince. Out of a total estimated population of 9,719,932, over 222,570 people were killed, 300,000 injured and 1.3 million were displaced.
That means that over 2% of Haiti’s population was KILLED and over 13% were homeless as a result of the 7.0 earthquake there last year. As regards the area where the damage was most severe, that comes to a death rate of 11.5 percent of the approximately two million people living in the immediate area of Port-au-Prince.
On March 11, 2011, Japan had an 8.9 magnitude earthquake 80 miles offshore, followed by a devastating tsunami, which rolled in at 600 mph. The March 11 earthquake was preceded by a series of large foreshocks over the previous two days, beginning on March 9th with a magnitude 7.2 event approximately 24 miles from the March 11 earthquake, and continuing with a further 3 earthquakes greater than magnitude 6 on the same day. The 8.9 magnitude earthquake was the worst in recorded history.
Japan’s death toll is currently around 7000, but it is far too early to tell. I can only imagine, in light of the devastation, that it could easily climb to 20,000 by the time these numbers are finalized.
Japan has a total population of 128.05 million.
Even if the current projected death toll from the recent earthquakes and tsunami more than double to 20,000, that would still keep it at only 1 fatality in 10,000 – a VERY far cry from Haiti’s recent earthquake disaster, which again claimed over 20 out of 1000 of its total population. If Japan’s death toll had equaled Haiti’s, in terms of percentages, then their death toll in terms of numbers would have been 2,156,000. That’s 2,555,000 or so lives that WEREN’T lost, that could have been, if conditions in Japan had matched those in Haiti.
The key difference between the infrastructure in the two countries can be summed up in two words: building codes.
It was observed that the vast majority of the tallest buildings in Japan’s urban areas stayed intact. Skyscrapers were seen to sway with the impact, but they stayed put. In fact, they were built to be able to sway that way. That’s part of what makes them so resilient to earthquakes.
Shorter buildings in Japan are built on tight coils, or springs, which decouples the buildings from the ground vibrations during an earthquake.
Haiti didn’t much care about building codes. Thousands upon thousands of people ended up being trapped in the rubble or displaced and homeless.
Japan has stringent building codes (the good news is, building codes in the US are on a similar par to Japan’s). This has made a huge difference in terms of the most recent natural disaster’s impact on that country, as opposed to the impact of the Haiti earthquake. This is not to make less of what actually has happened in Japan. But it really could have been a lot worse, if they hadn’t been this well prepared for it in terms of adhering to their building codes.
In fact, the vast majority of the destruction in Japan was due not to the earthquakes, but to the tsunami.
The estimated increase in construction costs for an earthquake-resistant structure that adheres to the strictest seismic codes is around 10%. Not bad, considering the amount of prevention available in this cure.
Steel framing and reinforcements are the most effective performers for earthquake resistant structures, provided that their connections are of a high quality. Metal is the top choice for builders when it comes to making a building earthquake resistant. Earthquake resistant buildings are constructed in a flexible mode, which means that in the event of an earthquake, they won’t break. They will just move.
Which brings us back full circle to the importance of quality metal fabrication machinery and construction. When you look at the amount of lives they truly can save, this manufacturing industry could be said to be the true unsung heroes of this piece.
-Anja Wulf