USA-Trade Dispute/Manufacturing

U.S. manufacturing slumps as trade war bites

  • English

Shotlist


Wisconsin, USA - Jan 10, 2020 (CGTN - No access Chinese mainland)
1. Workers working at GenMet, metal fabricating and engineering firm
2. Various of production line at GenMet
3.Various of GenMet President Mary Isbister talking to employees
4. SOUNDBITE (English) Mary Isbister, president, GenMet (starting with shot 3):
"It was very dramatic. Raw material prices across the board for our fabricating business increased anywhere from 30 percent to 150 percent depending on the commodity. And not only did prices increase dramatically but suddenly supply tightened significantly."
5. Various of workers wielding
6. SOUNDBITE (English) Mary Isbister, president, GenMet (starting with shot 5/ending with shot 7):
"You can deal with just about anything as long as it's consistent, as long as you can plan around it, as long as you can anticipate it. The problem is when it keeps changing and there is all this volatility and that's the thing that is difficult."
7. Worker wielding
8. Various of coaching staff doing inventory check

Illinois, USA - Jan 10, 2020 (CGTN - No access Chinese mainland)
9. SOUNDBITE (English) Prof. Phillip Braun, Kellogg School of Management, Northwestern University (starting with shot 8):
"Really, the impact is the manufacturing sector in the U.S. has actually slowed down. And the investment in capital goods has slowed down. That's being caused by the fact that these tariffs have created a lot of uncertainty. Companies don't want to invest heavily in new capital equipment if they don't really know what is going to happen in the future."

Wisconsin, USA - Jan 10, 2020 (CGTN - No access Chinese mainland)
10. Various of workers at GenMet plant
11. SOUNDBITE (English) Mary Isbister, president, GenMet (starting with shot 10):
"Certain industries might, on the face of it, seem like they are benefiting. But at the end of the day, we all pay the price."
12. Various of workers at GenMet plant

Storyline


U.S. manufacturing activity contracted for the past five straight months as trade tensions that saw a range of tariffs and retaliatory tariffs imposed on a range of goods weighed on business confidence.

A new product comes off the production line at GenMet, a metal fabricating and engineering firm in Mequon, Wisconsin. But this company, along with many other U.S. manufacturers, has endured a few complicated years brought about by the various global trade disputes.

Mary Isbister is the president of GenMet. She says the tariffs imposed on imported metals from China, Europe and Canada amongst others caused huge price increases and supply issues.

"It was very dramatic. Raw material prices across the board for our fabricating business increased anywhere from 30 percent to 150 percent depending on the commodity. And not only did prices increase dramatically but suddenly supply tightened significantly," she said.

Isbister calculates the tariffs cost the company 30 percent in net profits. She had to call each of the company's customers to rearrange prices.

"You can deal with just about anything as long as it's consistent, as long as you can plan around it, as long as you can anticipate it. The problem is when it keeps changing and there is all this volatility and that's the thing that is difficult," she said.

The latest data suggests U.S. manufacturing is under pressure with the sector contracting for the last five straight months. For some manufacturers, the impact of the tariffs is a key reason for that slowdown.

Although the U.S. unemployment rate is at a 50-year low, the manufacturing sector appears to be paying a price in the trade disputes.

"Really, the impact is the manufacturing sector in the U.S. has actually slowed down. And the investment in capital goods has slowed down. That's being caused by the fact that these tariffs have created a lot of uncertainty. Companies don't want to invest heavily in new capital equipment if they don't really know what is going to happen in the future," said Prof. Phillip Braun from the Kellogg School of Management at Northwestern University.

But there is hope for manufacturers with the new North American trade agreement or the USMCA is expected to be ratified this year.

While the phase one trade deal between the U.S. and China is set to be signed in Washington this week, showing a de-escalation sign in trade tensions. That's good news, says Isbister, who says eventually the tariffs catch up with the consumers.

"Certain industries might, on the face of it, seem like they are benefiting. But at the end of the day, we all pay the price," she said.

U.S. manufacturers hope the trade deals will bring a level of certainty and optimism back to the sector.

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  • ID : 8132715
  • Published : 2020-01-15 12:20
  • Last Modified : 2020-01-16 08:11:02
  • Location : United States
  • Category : economy, business and finance
  • Duration : 2'19
  • Audio Language : English/Nats
  • Source : China Global Television Network (CGTN)
  • Restrictions : No access Chinese mainland
  • Version : 4

USA-Trade Dispute/Manufacturing

U.S. manufacturing slumps as trade war bites

Dateline : Jan 10, 2020

Location : United States

Duration : 2'19

  • English


Wisconsin, USA - Jan 10, 2020 (CGTN - No access Chinese mainland)
1. Workers working at GenMet, metal fabricating and engineering firm
2. Various of production line at GenMet
3.Various of GenMet President Mary Isbister talking to employees
4. SOUNDBITE (English) Mary Isbister, president, GenMet (starting with shot 3):
"It was very dramatic. Raw material prices across the board for our fabricating business increased anywhere from 30 percent to 150 percent depending on the commodity. And not only did prices increase dramatically but suddenly supply tightened significantly."
5. Various of workers wielding
6. SOUNDBITE (English) Mary Isbister, president, GenMet (starting with shot 5/ending with shot 7):
"You can deal with just about anything as long as it's consistent, as long as you can plan around it, as long as you can anticipate it. The problem is when it keeps changing and there is all this volatility and that's the thing that is difficult."
7. Worker wielding
8. Various of coaching staff doing inventory check

Illinois, USA - Jan 10, 2020 (CGTN - No access Chinese mainland)
9. SOUNDBITE (English) Prof. Phillip Braun, Kellogg School of Management, Northwestern University (starting with shot 8):
"Really, the impact is the manufacturing sector in the U.S. has actually slowed down. And the investment in capital goods has slowed down. That's being caused by the fact that these tariffs have created a lot of uncertainty. Companies don't want to invest heavily in new capital equipment if they don't really know what is going to happen in the future."

Wisconsin, USA - Jan 10, 2020 (CGTN - No access Chinese mainland)
10. Various of workers at GenMet plant
11. SOUNDBITE (English) Mary Isbister, president, GenMet (starting with shot 10):
"Certain industries might, on the face of it, seem like they are benefiting. But at the end of the day, we all pay the price."
12. Various of workers at GenMet plant


U.S. manufacturing activity contracted for the past five straight months as trade tensions that saw a range of tariffs and retaliatory tariffs imposed on a range of goods weighed on business confidence.

A new product comes off the production line at GenMet, a metal fabricating and engineering firm in Mequon, Wisconsin. But this company, along with many other U.S. manufacturers, has endured a few complicated years brought about by the various global trade disputes.

Mary Isbister is the president of GenMet. She says the tariffs imposed on imported metals from China, Europe and Canada amongst others caused huge price increases and supply issues.

"It was very dramatic. Raw material prices across the board for our fabricating business increased anywhere from 30 percent to 150 percent depending on the commodity. And not only did prices increase dramatically but suddenly supply tightened significantly," she said.

Isbister calculates the tariffs cost the company 30 percent in net profits. She had to call each of the company's customers to rearrange prices.

"You can deal with just about anything as long as it's consistent, as long as you can plan around it, as long as you can anticipate it. The problem is when it keeps changing and there is all this volatility and that's the thing that is difficult," she said.

The latest data suggests U.S. manufacturing is under pressure with the sector contracting for the last five straight months. For some manufacturers, the impact of the tariffs is a key reason for that slowdown.

Although the U.S. unemployment rate is at a 50-year low, the manufacturing sector appears to be paying a price in the trade disputes.

"Really, the impact is the manufacturing sector in the U.S. has actually slowed down. And the investment in capital goods has slowed down. That's being caused by the fact that these tariffs have created a lot of uncertainty. Companies don't want to invest heavily in new capital equipment if they don't really know what is going to happen in the future," said Prof. Phillip Braun from the Kellogg School of Management at Northwestern University.

But there is hope for manufacturers with the new North American trade agreement or the USMCA is expected to be ratified this year.

While the phase one trade deal between the U.S. and China is set to be signed in Washington this week, showing a de-escalation sign in trade tensions. That's good news, says Isbister, who says eventually the tariffs catch up with the consumers.

"Certain industries might, on the face of it, seem like they are benefiting. But at the end of the day, we all pay the price," she said.

U.S. manufacturers hope the trade deals will bring a level of certainty and optimism back to the sector.

ID : 8132715

Published : 2020-01-15 12:20

Last Modified : 2020-01-16 08:11:02

Source : China Global Television Network (CGTN)

Restrictions : No access Chinese mainland

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