In Other manufacturer news

Housing sales here have all but ceased. New construction has slipped into crawl gear with ‘Special Incentive Deals’ flags flying. Only ones still buying are those that have fluid cash to just buy, major
Money holders are buying up hobby farms around here not for farming but for recreational space. Is a Four Million dollar “limited, intermittent use” house being built on a vravel road outside of town, owners live in St Louis where he is investment broker she is a housewife, bought close to 4000 acres in parcels for last fifteen years all ‘investment buys’ for a nature site(Controlled Hunting).
He is 74 she 50 and Third wife, she does NOT come out except when has to as I have been explained, two children not ever set foot on site, both have families out of state. See this turning into some sort of massive collapsing dump along with the few others can note as the owners die and children want the cash out.

Edited by DMiller - 10 Aug 2024 at 5:34am

Read this week that a lumber company in Wisconsin was shutting down 3 mills, laying off 150 people. With closings like that it also puts loggers and truckers out of jobs.

The fed was going to corner the Tax Value market, by taxing inventories that just sat.  Then JIT developed and those that did stockpile big inventories would write those down over time and send all that NEW Inventory to Scrap yards for destruction.  Have seen that first hand and at the Nuke I worked as well the Electrical Distribution District I started at with the company.  

DMiller wrote: Over thirty days in inventory the assembly facility pays inventory taxes on it. JIT for GM Chrysler and Ford St Louis was always no more than a weeks worth of materials. Was working for Gelco Rental the early 80s where that information came from a supplies hauler.

True on tax, but it all just depends. When our most specialized material became scarce and supply chain pooched by Covid we pre-bought a year’s worth. Just depends. Helped us kick the competition’s butt. We also get material delivered every day. But we sure as hell don’t shut down if a truck doesn’t show up. We can go by your 40 year old story or what I worked with last week. Y’all can decide for yourself.

Edited by Tbone95 - 03 Aug 2024 at 9:12pm

Over thirty days in inventory the assembly facility pays inventory taxes on it. JIT for GM Chrysler and Ford St Louis was always no more than a weeks worth of materials. Was working for Gelco Rental the early 80s where that information came from a supplies hauler.

jaybmiller wrote: The big problems are cost and  space. 'Reserve' inventory takes up expensive space, lowers the 'bottom line'. Also real money is tied up in that reserve inventory. I got a killer deal on Twinwall one summer. Asked supplier what was 'on the shelf  collecting dust'. Next day, a delivery guy came with 3 skids FULL of Twinwall, that I paid about 5% of HIS cost. Everyone was happy ! Have to be smart to decide what is 'critical' and what is an 'acceptable' stock level. Cut a lot of code 4 decades ago for local hobbyshop, as there were seasonal blips and 99.44% came from USA. You'd think todays computers would be  smarter and  get the 'numbers' right.

we’ll no 5hit. But if you want expensive, shut down a factory. Ya, they don’t load a factory floor to ceiling with two years of inventory anymore, but they do plan to avoid critical area shut downs.

We do business with General Motors, Ford, Stellantis, Deere, Caterpillar, GE, Dana, their suppliers and 1000’s of other companies. But what would I know.

Most factories aren’t (still) dumb enough to run that short and tight on inventory anymore. It was a thing, but critical areas have been studied and a “store” is incorporated in critical areas to keep things going for a multiple of the takt time.

totaly right dr. every thing revoles around the cost of fuel

Here’s a weblink to “Tractor Mike’s” perspective on Mexico production for US Ag mfgs.

https://m.youtube.com/watch?v=y50FcIrpmxE&pp=ygUTVHJhY3RvciBtaWtlIG1leGljbw%3D%3D

Agco plans significant layoffs, citing ‘weakening demand’
The farm equipment maker expects to cut up to 6% of its salaried workforce just days after disclosing some production will move to Mexico.
Published June 27, 2024
By Nathan Owens
Reporter



https://www.agriculturedive.com/news/agco-reveals-layoffs-citing-weakening-demand/720047/

Stellanis is the current parent company of Chrysler, seems the plant closers US started two years back. Dodge pickups are now RAM trucks no longer Dodge Badged, produced in MX, the STL plant at Fenton closed some over 10 years ago and was completely dismantled, Belvedere IL plant has lain empty a few years where the state of IL bought it for some idiotic plan. Most facilities were obsolescing so needed complete refurbishments, easier to close and continue production elsewhere just as Deere. Cat has been Japan/Asia including China produced for close to four decades and is not coming back. Europe faring no better as Asian industries from India to SE Asian nations deliver cheaper labor than even Mexico or S America nations.

Yeah, it seems so. But, it’s just another market within the system.

steve(ill) wrote: I once was at a meeting where the CEO of the Company said "WHAT DO WE MAKE HERE"... everyone said "WIDGETS" ( or what ever was produced).... the CEO said  "WRONG.. We MAKE MONEY " !! ... He said ...."I can put the money in the bank and get 5% or in the Stock Market and get close to 10% .... If your not BEATING THAT, .. YOUR LOOSING MONEY "............. "WHY STAY IN BUSINESS"...

Exactly right Steve. And when companies get very good at it, people call it evil. It’s called success in capitalism. Just the people working within the system in which we live. It’s easy to say a CEO isn’t worth $x, a product not worth $y, but how should those be limited, and by who?!

Dave I think there are a few things driving those prices and I wonder how long it's going to last. We have a liquid waste company in our area that buys land and doesn't have to make money farming it just spreads liquid on it. Two farmers had farms in the far suburbs of Milwaukee that are sitting on high dollar land and if they sell any they reinvest in more land. Then we have a large dairy that just keeps growing and buying land to grow corn silage and spread manure. Then we have a young guy then just rented a bunch of land away from others for more money maybe someone knows but we don't know what his financial backing is.akescyou scratch your head. Then there's the guy who's son is a lawyer and put together an investment group. The regular farmer can't compete with that without some kind of angle of his own.