Protecting Our Jobs



Did you know that US iron ore mines are refining from low-grade ore ?
http://www.dnr.state.mn.us/education/geology/digging/taconite.html
Why transport all that iron ore to the mine Kirk, why not build your mill in Brazil to start with ?
One of the expenses added to US Steel making has to do with refining then converting the taconite into iron ore which are found in mines of N. MN. (coincidentally when I was a kid, these pellets make great ammo for slingshots).
http://www.taconite.org/who_we_are/producing.html
There are quite some energy demand to convert a *low grade* taconite to refine it the higher grade iron ore, not to mention shipping it through the channels of the great lakes then onto harbors to reach Gordon Steel.
Recently a Chinese company purchased a big mine in Northern MN, as to what they will do differently at the closed up Kirk mine that US engineers and MBA's and Kirk Gordon couldn't figure out when he was trying to figure out union costs?
http://www.duluthsuperior.com/mld/duluthsuperior/7539681.htm
It sort of reminds us of a movie years ago called "Gung Ho"
Plot Outline: When a Japanese car company buys an American plant, the American liaison must mediate the clash of work attitudes between the foreign management and native labor.
FYI: Brazil already has high-grade iron ore straight out of the earth Kirk, little need is there to pollute the atmosphere further compared to mine in MN when it is high grade ore to start with, but is it the only thing that will keep costs down ?.
Strategic alliances between Brazil and US steel makers should have been met decades ago when regulations in the US got tighter, afterall our remember our iron ore was low-grade anyway. Now that the future demand for steel is high due in part to China and third world countries in asia stabilizating this will further increase the demand for steel and the remainder gets imported to the US at dirt cheap prices.
The future of steel looks very bright indeed Kirk, as a matter of fact, Mittal has recently purchased an US steel mill. Where have the US investors been hiding in what is now the highest demand for Steel products in decades ?
Look at these pages Kirk there making money! and you can sit there and and tell me about saving the fish, wildlife, and the air we breath from evil polluters.
http://www.iacfpa.org/p_news/nit/iacpa-archieve/2004/11/05/hon1-051104.html
http://www.bloomberg.com/apps/news?pid 000100&sid=ameStoLTbWIo&refer=germany

Short-term thinking ahead, stop lets take a breather a few steps back and try to imagine a major distribution point, meanwhile, as the ozone gets thinner the third world is no longer in third place and the only mass produced item from sea to shining sea is pizzas!
Meanwhile as a small mine feeds into a small mill to supply the growing industry of small fabrication shops, these are spread out like islands between city to city, everywhere to keep our cities and bridges from rusting out.
My advice to shop owners is don't sell your shop quite yet, hold on a while longer, small part machining will only be one part of your business in the future, as steel conglomerates merge, deals will be struck and this will create a growing demand for unique bigger items which are fabricated inside what resembles much like a machine shop. In the near future there will be a very great need for large heavy precise steel products, so save your investment on new equipment and get into the growing field of large scale precise steel fabrication. Once these steel conglomerates align their capital, you will start to see some lucrative success by partnering into one of their channels just like node on a big network. More of your small machined parts will be outsourced to the third, but these big machined parts structural components will grow and grow straight up, IMHO.
John

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John Scheldroup wrote:

You read me wrong, John. I'm brining ore from anyplace on the planet where I can talk half-starved serfs into mining it cheap. It's the coal I'm getting from nearby. Pennsylvania has some serious, high quality anthracite deposits. And since I'll use more tons of coal than tons of iron ore, being close to the coal is better and cheaper.
KG
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John Scheldroup wrote:

You read me wrong, John. I'm bringing ore from anyplace on the planet where I can talk half-starved serfs into mining it cheap. It's the coal I'm getting from nearby. Pennsylvania has some serious, high quality anthracite deposits. And since I'll use more tons of coal than tons of iron ore, being close to the coal is better and cheaper.
KG
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I agree then that you will have need for taconite from MN because you can get it at higher grade at less cost from Brazil.
The taconite railroads are in the family blood Kirk, good paying unionized jobs, mom was a secretary probably earned a hundred bucks a day back in 1977.
Dad punched iron ore - (shoveling-leveling) into ore carriers when he lied his age 14 not 18. The summers were hot and dusty and winters were 20-30 below zero. Dad helped support his big family recently immigrated, and warm clothing in the depression years were not provided on the job unless grandmother knitted them.
After ww2 he went to college got an accounting degree then he continued on the railroad but in an office. Job duties for managing the migration of taconite from rail to ship in a timely manner were high priority. Programming computer systems for the payroll was sort of my fathers specialty in the early 70's.
Grandfather was a self-taught telegraph operator, he traveled throughout the Midwest during the depression years, so long as he traveled where they wanted to put him, there was job security .
http://www.eia.doe.gov/emeu/cabs/brazil.html#coal
COAL Brazil has considerable recoverable coal reserves of approximately 13.1 billion short tons, the second largest in the Western Hemisphere behind the United States. Coal, however, plays only a small role in Brazil's energy mix, accounting for just 5.2% of the country's total primary energy consumption in 2002.
Much of Brazil's coal is characterized by high ash and sulfur contents, as well as low caloric values. In 2002, Brazil's coal production was approximately 4.6 million short tons (Mmst), while consumption was an estimated 22.1 Mmst, with net imports of 17.5 Mmst. Most of domestic production is used for power generation, while imports are used for the country's steel making industry.
Brazil is attempting to reverse its status as a net importer of coal. According to reports, Brazil's national development bank, Banco Nacional de Desenvolvimento Economico e Social (BNDES), is developing a plan to expand the country's coal industry.
BNDES hopes that the proposed program will make Brazil self-sufficient in coal by 2010 and eventually a net exporter of coal.

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<snip>

<snip>
I was reading the paper this morning and was thinking the same thing about large part manufacturing. Different reason though, the article was about a shortage of capacity in oil refining and transport. Should be a need for lots of big parts there.
Dan
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Stan Dornfeld wrote:

Stan:
    I feel for you. I was quoting a small medical job yesterday. The engineer left off the material AND the quantity. So I quoted for one part in alum. (often their material & quantity of choice). But I called just in case. Big surprise! He wanted it out of 17-4 PH and a quantity of 5, but neglected to state that fact on the cover sheet.

    Well here's another little tid-bit along those lines. We've been doing some work for a large machine builder recently. They ordered 900 pieces to be shipped to them in lots of 300 each. We made all 900 at once since it wouldn't make sense to set-up the job three separate times and have them power coated. They accepted delivery on two lots of 300 each but then decided they didn't want the last 300. They have some fine print in their PO that says they can refuse shipment with a 30 day notice. Talk about adding to the cost of doing business! The got 600 parts at the unit cost of 900 pts. It's not likely we'll be doing any more work for them. How many times can a customer screw over their vendors before they use them all up.     (If anyone wants to know who the machine builder is so this doesn't happen to them, E-mail me).
-- BottleBob http://home.earthlink.net/~bottlbob
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BottleBob wrote: <<Snip>>

I would guess the one in the So Cal area, but that's just me. ;-)
--
Later,

Charlie
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Charlie Gary wrote:

Charlie:
    There are more than one.
-- BottleBob http://home.earthlink.net/~bottlbob
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Bob,
Might just as well post it online...............
Ya want some names???--(I really dont care anymores, as they all seem to be deadbeats these days).
But I'm gonna hold back, suggest you should go first....
--
SVL



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PrecisionMachinisT wrote:

SVL:
    No, I'm not going to do that.
-- BottleBob http://home.earthlink.net/~bottlbob
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Nor am I, even though there are several that I'm dissapointed with at present.
I spose its not a matter of who it was that took away all the good customers--more so, it's a question of why have so many of the good ones gone bad, no ???
--
SVL





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BottleBob wrote:

ten bucks says it's Haas. Slimy little bottom-feeders that they are ....
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