American businesses are setting up shop in Mexico instead of China. China, which was the number one location for manufacture of goods bound for the U.S., has fallen into third place. Mexico is now number one, followed by India.

Several factors have converged to make Mexico an attractive place for manufacture. Daniel Silva of the Mission Economic Development Authority said: "Compared to China, Mexico offers better access to North American markets with a shorter, faster and cheaper transportation route to move products and supplies by truck, rather than over thousands of miles by ship, rail and truck combined."

Continue reading Mexico beats China in American assembly for export factories

Mexico beats China in American assembly for export factories originally appeared on BloggingStocks on Thu, 05 Nov 2009 12:50:00 EST. Please see our terms for use of feeds.

Continue reading 'Buy American' hurting America?

'Buy American' hurting America? originally appeared on BloggingStocks on Thu, 17 Sep 2009 10:30:00 EST. Please see our terms for use of feeds.

In an attempt to explain his position regarding trade, Democratic presidential front-runner Barack Obama said that he did not oppose free trade, despite making increasingly critical comments about multilateral deals such as NAFTA.

Asked how other countries should interpret his position, Obama responded that he supported free trade but wanted it to be fair.

"What the world should interpret is my consistent position, which is I believe in trade," he said after meeting with workers at a manufacturing plant in Ohio.

"I just want to make sure that the rules of the road apply to everybody and they are fair and that they reflect the interests of workers and not just corporate profits."

Well why, Senator Obama, do companies want to engage in trade? The answer is because both sides feel that they can gain from the deal. Corporations engage in trade to profit. Period. Entrepreneurs start companies because they think they can make a buck. On the other side, poorer countries want to trade to help create wealth.

Continue reading Hey Barack: People start companies in order to profit

Hey Barack: People start companies in order to profit originally appeared on BloggingStocks on Mon, 25 Feb 2008 16:31:00 EST. Please see our terms for use of feeds.

Continue reading Politicians want the border open, not truck drivers

Politicians want the border open, not truck drivers originally appeared on BloggingStocks on Thu, 30 Aug 2007 17:50:00 EST. Please see our terms for use of feeds.

Diversified industrial manufacturer Eaton Corporation (NYSE: ETN) recently announced increases to both 2Q and FY 2007 guidance based on increases in sales growth. But these sales numbers bear investigating. According to 2Q 2007 earnings, sales increased 4% to $3.25 billion. But 3% of that growth was due to acquisitions, 2% was due to favorable exchange rates, and organic growth accounted for NEGATIVE 1%. Likewise, the EPS numbers bear scrutiny. 2Q EPS was $1.64, well ahead of the forecast $1.35-$1.45, but $0.17 of that differential was due to a tax adjustment, not to increased profitability. Nonetheless, Eaton has raised FY guidance by $0.30 to reflect FY EPS in the $6.75-$6.95 range.

Eaton CEO Alexander Cutler credits Eaton's diversification strategy and implementation of a program entitled Excel 07 for the company's positive performance. Upon closer investigation, these two programs resulted in an operating margin of 12.9%, exactly the same operating margin the company posted in 2Q 2006 without the benefit of these two initiatives. Some sectors of the company are posting good numbers. The electrical power sector posted a sales increase of 11%, and this was before the introduction of Eaton's hybrid truck power system went into production. Eaton electrical power quality deals primarily with non-residential customers, so it remains unaffected by the ongoing carnage in the US residential housing market. The fluid power sector, primarily hydraulics, is poised to post great numbers. Eaton just won two large military helicopter contracts totaling more than $220 million. The aerospace industry, both in the US and Europe, remains a lucrative customers for Eaton.

Eaton's stock has taken several hits recently, closing on 16 August at $85.12, down $2.63. Much of this loss can be traced back to negative publicity about continuing declines in Eaton's heavy-duty truck sector due to implementation of NAFTA regulations. But Eaton knew about these regulations well ahead of time and has been making strategic acquisitions in its other sectors to offset anticipated losses in the truck sector.

Eaton Corporation (ETN) raises FY guidance, but why? originally appeared on BloggingStocks on Fri, 17 Aug 2007 11:18:00 EST. Please see our terms for use of feeds.

Today's Democratic Party is not the Democratic Party as your grandfather knew it. If you think that the Democrats are all about working peoples' needs and how best to serve them, you may wish to think again. The days when the powerful labor unions were backed by legislation-wielding hot-dogs who were ready to step into the gap to protect the working class in wages, safety, and working conditions have faded away. In fact, I'm of the mind that the decline actually began way back with the disappearance of Jimmy Hoffa and the slow ugly death of that empire once known as the American steel industry.

Fast forward to NAFTA and GATT, and you'll find two of the most damaging pieces of paperwork that the American economy has ever endured. Do I need to mention the one name most closely associated with both of those documents from the American side? I'll give you a hint, his ex is now looking to plant her feisty butt in the oval office.

Take a look, if you dare, at the link I have provided. It's an article called "Dems Sell Out on Trade" and surprisingly enough it's written from a slightly Democratic perspective. Read it, digest it, and then look at the past three decades in light of it. No, today's Democratic Party is not the Democratic Party that your grandpa supported. The new breed means business . . . in a stinkingly non-American, global sense.

Why you might still think twice about voting Democrat originally appeared on BloggingStocks on Wed, 30 May 2007 21:04:00 EST. Please see our terms for use of feeds.

Last week the House voted a whopping 411-3 to approve HR 1773, the Safe American Roads Act of 2007, which would set strict criteria and additional oversight of the DOT's Mexican pilot program announced in February. The vote attempts to slow the Department of Transportation's proposed pilot plan to a crawl until the DOT inspector general can certify in advance its department has met all 22 conditions Congress set back in 2001, before the U.S. southern border would be opened. The measure would require the DOT to publish detailed plans for its program, including the results of its safety audits of Mexican carriers, as well as giving U.S. truckers access to Mexico when the border opened.

If the U.S. Department of Transportation finds Mexican trucking companies violate U.S. safety regulations, the proposed pilot program would be terminated immediately.

Rep. Shelley Moore Capito (Republican, W.Va), a House Transportation Committee member, said "There are serious flaws in the department's pilot program, and this legislation addresses them." One of the new law's provisions, which Capito backs, is the requirement that Mexican truck drivers speak English proficiently. Rep. Capito endorsed the law giving Mexican truckers access to U.S. roads only if they follow U.S. safety rules.

Before the vote, the DOT said it was almost ready to allow trucks from Mexico into the U.S., but the House, and other special interest groups, obviously disagree. Ken Hall, a Teamsters International Vice President, said Mexico has lax or nonexistent trucking laws. Last year, [the Teamsters] hired an independent investigator who found Mexican drivers had bad equipment and routinely used drugs." Jacqueline Gillan, vice president of Advocates for Highway and Auto Safety, said "The vote was a bipartisan check on a runaway demonstration project that lacked any public input and violated current law."

The DOT now says it could be as late as 2008 before Congress's new criteria are met.

House imposes stronger restrictions to limit Mexican trucks in the U.S. originally appeared on BloggingStocks on Mon, 21 May 2007 18:40:00 EST. Please see our terms for use of feeds.

Continue reading U.S. trucking industry saved by Congress' actions

U.S. trucking industry saved by Congress' actions originally appeared on BloggingStocks on Fri, 04 May 2007 17:12:00 EST. Please see our terms for use of feeds.