Buyers oppose drastic trade protection
By Staff -- Purchasing, 12/10/1998
U.S. steelmakers are lobbying hard in Washington, seeking protection from the tide of cheap steel imports flowing to U.S. markets. But buyers remain generally unsympathetic to their cause.Asked if Uncle should move to protect U.S. industry from the flood of low-priced imports washing up on U.S. shores, 58% of buyers surveyed recently by Purchasing vote "no." Of the 30% who vote "yes," many are working for companies in severely affected industries (steel, semiconductors, apparel), qualifying their responses with phrases like "under certain circumstances."
In some cases, buyers say the government should move to strictly enforce existing trade laws against dumping and foreign government subsidies, suggesting that steelmakers have at least some support among the buying community. One buyer thinks the government should intervene, "only if import pricing is clearly at 'dumping' levels." Otherwise, he says, "global markets must find their own water level." Another PM says, "Trying to match pricing with a government-subsidized foreign manufacturer is a losing bet. If this continues, steel manufacturers will start closing their doors."
Still, many more buyers take a hard philosophical line, suggesting that the only way to preserve U.S. manufacturing is to force its participants to learn tough survival skills. Says Jonathan Wilk, sourced products manager for Lexmark International, in Lexington, Ky., "We all must be able to compete on a global scale and let the market forces dictate who is successful and who is not. This should not be determined by the U.S. government." Daymon Lyons, director of materials, for Hobbs Corp. in Springfield, Ill., says, "Short term protectionism will only hinder any recover potential." Likewise, the vice president of supply management for a beleaguered U.S. semiconductor firm says, "I believe U.S. companies are strong enough to withstand this short-term situation and will be in a strong competitive position when the situation passes."
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