Domestic competitiveness: investigating U.S. casting costs: as a first in a three-part series, this article reviews data revealed by the U.S. ITC Section 332 study that illustrates how U.S. metalcasting operations fared from 1999-2003.Few could ignore that the U.S. metalcasting industry took a hit during the economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the opening years of the millennium millennium [Lat.,=1,000 years], the period of 1,000 years in which, according to some schools of Christian eschatology, Christ will reign again gloriously on earth. Belief in the millennium, based on Rev. 20, has recurred in Christianity since the earliest times. , but there is a great deal of debate as to why the deceleration deceleration /de·cel·er·a·tion/ (de-sel?er-a´shun) decrease in rate or speed. early deceleration occurred and what actions the industry (and possibly the U.S. government) should take to help recover. Responding to the request of the U.S. Congressional Ways and Means WAYS AND MEANS. In legislative assemblies there is usually appointed a committee whose duties are to inquire into, and propose to the house, the ways and means to be adopted to raise funds for the use of the government. This body is called the committee of ways and means. Committee in May of 2004 (see p. 9 in Industry News for more information), the U.S. International Trade Commission (ITC ITC (Brit) n abbr (= Independent Television Commission) → Fernseh-Aufsichtsgremium ITC n abbr (BRIT) (= Independent Television Commission) → ) began a Section 332 investigation to develop a comprehensive knowledge base of the competitive conditions facing the U.S. metalcasting industry. In May 2005, the 300-plus page "Publication 3771 Foundry A semiconductor manufacturer that makes chips for third parties. It may be a large chip maker that sells its excess manufacturing capacity or one that makes chips exclusively for other companies. Products: Competitive Conditions in the U.S. Market" was published, providing extensive documentation of the U.S. metalcasting industry as well as accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. information from other countries, including Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. and China. This article is the first in a three-part series by MODERN CASTING to describe the competitive conditions facing U.S. metalcasters. This article focuses on domestic data, includes a summary of some of the major points drawn from the Section 332 report, and gives some possible direction for the U.S. metalcasting industry. Topics covered include purchasing and market share trends, production performance by industry, and trends in wages and the metalcasting industry workforce. Building the Report The fact-finding fact-find·ing n. Discovery or determination of facts or accurate information. adj. Of, relating to, or used in the discovery or determination of facts: a fact-finding committee; a fact-finding tour. investigation conducted by the U.S. ITC provides an overview of the global metalcasting industry and the U.S. market during 1999-2003, including principal metals and casting methods, production steps, technology, and factors of competition affecting the industry's performance and competitiveness. This comprehensive profile examines business trends and practices, financial performance, factors of production, and policies affecting domestic producers. The information is based on questionnaires sent to U.S. metalcasters and casting purchasers and was supplemented by testimony Oral evidence offered by a competent witness under oath, which is used to establish some fact or set of facts. Testimony is distinguishable from evidence that is acquired through the use of written sources, such as documents. testimony n. presented at the ITC's public hearing as well as through field interviews, trade associations, contacts with industry representatives (producers, suppliers and purchasers), trade literature and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the sites. The USITC USITC United States International Trade Commission (US Federal agency) reported that the data received accounted for: (in tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. ) 82% of iron, 75% of aluminum, 65% of steel and 32% of copper production, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. 2003 AFS A distributed file system for large, widely dispersed Unix and Windows networks from Transarc Corporation, now part of IBM. It is noted for its ease of administration and expandability and stems from Carnegie-Mellon's Andrew File System. AFS - Andrew File System data. At total of 680 metalcasting firms of 1,246 contacted (55%) and 651 casting purchasers of 1,591 contacted (41%) responded to the purchasing questionnaire questionnaire, n a series of questions used to gather information. questionnaire, n a form usually filled out by patients that provides data concerning their dental and general health. , with 470 firms indicating they purchased the castings specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. within the scope of the investigation, which included ductile iron Ductile iron, also called ductile cast iron or nodular cast iron, is a type of cast iron invented in 1943 by Keith Millis[1]. While most varieties of cast iron are brittle, ductile iron is much more ductile, as the name implies. crankshafts/camshafts, aluminum engine components, gray iron motor vehicle gear boxes, copper and steel valves and ductile iron bearing housings. Of special note, the U.S. ITC reports that purchasers of foreign castings in the U.S. likely number in the tens of thousands, yet due to the 1-yr. time frame, a full investigation was not feasible (algorithm) feasible - A description of an algorithm that takes polynomial time (that is, for a problem set of size N, the resources required to solve the problem can be expressed as some polynomial involving N). . Instead it focused on the product groups as specified. Although a sample of 1,600 purchasers of domestic and foreign castings was collected, the resuits of this selected sampling may be skewed skewed curve of a usually unimodal distribution with one tail drawn out more than the other and the median will lie above or below the mean. skewed Epidemiology adjective Referring to an asymmetrical distribution of a population or of data slightly. The information in this analysis is based primarily on the data provided by the U.S. ITC report and other U.S. government sources. Trends in Purchasing and Market Share From 1999 to 2003, U.S. companies who responded to the purchasing survey increased their purchases of castings from $7 billion to $8.9 billion, a 26% increase. The majority of these were purchased from U.S. metalcasting facilities (Fig. 1). However, in this time frame, domestic metalcasting facilities suffered an overall loss in market share. The significant drops in 2000 and 2001 stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. in 2002 and were followed by somewhat of a recovery in 2003 (Fig. 2). [FIGURES 1-2- OMITTED] The change in market share differs between rough and machined castings. For rough casting suppliers, aluminum and copper changed little, while iron steadily declined and steel declined but recovered (Fig. 3). For machined casting suppliers, aluminum and iron remained relatively stable overall, steel improved markedly and copper fell sharply (Fig. 4). [FIGURES 3-4 OMITTED] The changes in the average market share may appear insignificant because even the worst overall loss was less than 2%. However, this seemingly seem·ing adj. Apparent; ostensible. n. Outward appearance; semblance. seem  ing·ly adv. small loss of market share has drastically dras·tic adj. 1. Severe or radical in nature; extreme: the drastic measure of amputating the entire leg; drastic social change brought about by the French Revolution. 2. reduced revenue for U.S. metalcasting facilities because of the large casting market. Had the market remained unchanged from 1999, overall revenue would have been more than $441 million higher. Instead, this revenue went to foreign competition. As a result, profitability has declined in the U.S. metalcasting industry. The percentage of U.S. metalcasting facilities reporting losses increased significantly each year from 1999 to 2003, with rough casting producers showing a substantially higher rate of loss than machined casting producers (Fig. 5). These changes brought about more than 200 plant closings. [FIGURE 5 OMITTED] Although the average revenue per ton has shown a consistent annual increase, responses to the questionnaire revealed production and sales have declined (Fig. 6). Therefore, the benefit of the higher revenue has been largely offset by lower production and sales. (Note: Casting buyers report that purchases increased while metalcasting firms reported that purchases decreased. This discrepancy DISCREPANCY. A difference between one thing and another, between one writing and another; a variance. (q.v.) 2. Discrepancies are material and immaterial. can be attributed to the different markets sampled. Data from purchasers is only representative of those that responded to the survey, not all purchasers.) As would be expected, U.S. casting production varied by industry with aluminum rising, iron falling, and steel and copper remaining stable (Fig.7). [FIGURES 6-7 OMITTED] Employee Costs and Capital Investment Employee costs are a major difference between U.S. metalcasting facilities and foreign competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. . Capital investment is seen as one way of narrowing this gap to make U.S. firms more competitive. According to the U.S. ITC report, capital expenditures declined sharply after 2000, but employee costs were roughly unchanged at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $5 billion (Table 1). The stability of the employee cost is surprising in light of the shrinking production workforce. Both the total number of employees and the number of production employees decreased significantly due to a combination of bankruptcies and increased production automation. However, the total wages paid by the industry have not decreased to the same extent as the workforce meaning the production workforce has benefited with average hourly wages increasing 12% in 5 years, from $15.58 to $17.57/ hr. The hourly wage differs by industry, where aluminum wages are highest, gray iron is slightly lower, and steel, ductile iron and copper pay roughly the same, but lower, wages. Changes in Business Practices The report indicates that during 1999-2003 key performance indicators Key Performance Indicators (KPI) are financial and non-financial metrics used to quantify objectives to reflect strategic performance of an organization. KPIs are used in Business Intelligence to assess the present state of the business and to prescribe a course of action. , such as production, shipments, employment and net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight all trended downward. Rising energy, raw material, environmental and employee costs tightened profit margins. Customers increasingly are able to find lower-cost foreign replacements for castings and are dictating product pricing and contract terms, which forces U.S. casting suppliers to make price concessions. Also, because of possible foreign competition, purchasers are able to demand less flexible delivery times and more stringent product specifications. In response to global competition, the report acknowledges that metalcasting firms have made substantive Substantive may refer to: In grammar:
In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. engineering and design staffs, to assist customers with technical services. The value-added services are particularly attractive to customers such as automotive companies, which need to know that the component is designed and produced to meet required specifications. Faster production times and improved flexibility are also attractive to customers. Further, international quality standard certifications, such as ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9000 and ISO 14000, are becoming necessary to compete in the market. Overcoming Weakness; Playing Up Strength The body of information presented in the ITC report, gives evidence to the strengths and the weaknesses of the U.S. metalcasting industry. U.S. metalcasting facilities likely will overcome their weaknesses through a combination of the following factors: providing the highest quality castings at the lowest price, increasing automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. manufacture, shortening leadtimes and implementing rapid manufacturing Building parts out of plastic or metal one layer at a time using a method of additive fabrication such as 3D printing. Multiple pieces, either similar or dissimilar, can be built simultaneously. techniques as well as concentrating or expanding production of machined and complex castings not readily produced in foreign countries. What is the Cost of U.S. Metalcasting? This article is Part 1 in a three-part series. Part 2 of the series will be published in the November November: see month. issue of MODERN CASTING and Part 3 will appear in the December December: see month. issue. Part 1: Domestic Competitiveness: Investigating U.S. Casting Costs--This article reviews data revealed by the U.S. ITC Section 332 study that details how U.S. metalcasting operations fared from 1999-2003. Part 2: Domestic Business. What is Our Cost of Operation?--A recent metalcasting operational cost survey breaks down production and business expenses for the U.S. industry. Part 3: Global Competitiveness: Identifying Our Challenges?--This article reviews data collected regarding the metalcasting industries of India, China, Brazil, Taiwan Taiwan (tī`wän`), Portuguese Formosa, officially Republic of China, island nation (2005 est. pop. 22,894,000), 13,885 sq mi (35,961 sq km), in the Pacific Ocean, separated from the mainland of S China by the 100-mi-wide (161-km) Taiwan , Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. , Japan and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of in the Section 332 study and analyzes potential remedies rem·e·dy n. pl. rem·e·dies 1. Something, such as medicine or therapy, that relieves pain, cures disease, or corrects a disorder. 2. Something that corrects an evil, fault, or error. 3. to global competition. Also, the annual world census census, periodic official count of the number of persons and their condition and of the resources of a country. In ancient times, among the Jews and Romans, such enumeration was mainly for taxation and conscription purposes. of casting production will be detailed. Ben Schultz Schultz may refer to People:
. Job’s trials in modern setting and idiom. [Am. Lit.: J.B.] See : Suffering J.B . testing of contemporary Job. [Am. Lit.: J.B.] See : Test . Ferguson Ferguson, city (1990 pop. 22,286), St. Louis co., E Mo., a suburb of St. Louis; inc. 1894. It is primarily residential. and Pradeep Kavi Pradeep (1915-1998) was a popular Indian poet and lyricist. Early life Born Ramchandra Barayanji Dwivedi in 1915 into a middle-class Brahmin family in the small central Indian town of Badnagar, in Madhya Pradesh state. Rohatgi University of Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee , Milwaukee Milwaukee (mĭlwŏk`ē), city (1990 pop. 628,088), seat of Milwaukee co., SE Wis., at the point where the Milwaukee, Menominee, and Kinnickinnic rivers enter Lake Michigan; inc. 1846. About the Authors Ben Schultz and J.B. Ferguson are both completing their Ph.D. in Materials Engineering at the Univ. of Wisconsin, Milwaukee. Pradeep Rohatgi is a professor at the Univ. of Milwaukee. Shortly after the release of Publication 3771, AFS contacted the university and the authors requesting an in depth analysis of the publication from a fresh perspective.
Table 1. Responding U.S. Metalcaster's Employee Costs and
Capital Expenditures for Rough Casting Production (in $1,000)
Item 1999
Employee costs:
Salaries and wages (including overtime) 3,771,733
Health benefits 504,677
Pension and profit sharing 183,872
Other costs 410,127
Employee training 39,047
Total employee costs 4,909,456
Capital expenditures:
Machinery, equipment and fixtures:
Environmentally related 98,772
Other 759,886
Land, building and related improvements 96,667
Total capital expenditures 955,326
Item 2000
Employee costs:
Salaries and wages (including overtime) 4,047,346
Health benefits 575,089
Pension and profit sharing 184,831
Other costs 489,692
Employee training 38,679
Total employee costs 5,335,637
Capital expenditures:
Machinery, equipment and fixtures:
Environmentally related 58,578
Other 768,044
Land, building and related improvements 161,002
Total capital expenditures 987,624
Item 2001
Employee costs:
Salaries and wages (including overtime) 3,814,982
Health benefits 574,614
Pension and profit sharing 183,586
Other costs 483,279
Employee training 30,667
Total employee costs 5,087,128
Capital expenditures:
Machinery, equipment and fixtures:
Environmentally related 44,423
Other 702,863
Land, building and related improvements 138,131
Total capital expenditures 885,417
Item 2002
Employee costs:
Salaries and wages (including overtime) 3,796,364
Health benefits 604,711
Pension and profit sharing 198,149
Other costs 478,315
Employee training 29,966
Total employee costs 5,107,505
Capital expenditures:
Machinery, equipment and fixtures:
Environmentally related 61,891
Other 590,796
Land, building and related improvements 80,555
Total capital expenditures 733,242
Item 2003
Employee costs:
Salaries and wages (including overtime) 3,791,209
Health benefits 645,329
Pension and profit sharing 255,017
Other costs 503,950
Employee training 30,497
Total employee costs 5,226,002
Capital expenditures:
Machinery, equipment and fixtures:
Environmentally related 31,509
Other 459,535
Land, building and related improvements 89,292
Total capital expenditures 590,336
Note: Figures may not add to totals because of rounding.
Table 2. Responding U.S. Metalcasters' Capacity, Production
and Shipment for Rough Casting Operations
Item 1999 2000
Quantity (tons)
Capacity:
Iron 9,687,985 9,722,389
Steel 928,834 936,160
Aluminum 1,984,306 2,054,350
Copper 158,790 159,123
Total 12,759,159 12,876,046
Production:
Iron 8,320,927 8,323,187
Steel 713,175 811,943
Aluminum 1,271,861 1,446,825
Copper 99,016 98,291
Total 10,404,979 10,482,246
Value ($1,000)
Domestic shipments:
Iron 8,026,920 7,748,331
Steel 1,325,710 1,346,992
Aluminum 4,821,176 5,340,710
Copper 325,628 331,703
Total 14,499,434 14,767,738
Item 2001 2002
Capacity:
Quantity (tons)
Iron 9,620,048 9,744,415
Steel 935,323 927,816
Aluminum 2,168,378 2,460,681
Copper 165,372 176,483
Total 12,886,373 13,305,001
Production:
Iron 7,407,850 7,554,850
Steel 558,926 534,006
Aluminum 1,241,855 1,409,642
Copper 88,874 89,628
Total 9,297,515 9,588,045
Value ($1,000)
Domestic shipments:
Iron 6,818,025 6,678,797
Steel 1,248,556 1,109,013
Aluminum 5,096,981 5,658,193
Copper 317,885 348,807
Total 13,482,557 13,794,810
Item 2003
Quantity (tons)
Capacity:
Iron 9,360,928
Steel 928,614
Aluminum 2,676,496
Copper 175,313
Total 13,136,989
Production:
Iron 7,461,348
Steel 618,815
Aluminum 1,458,839
Copper 87,223
Total 9,625,085
Value ($1,000)
Domestic shipments:
Iron 6,999,986
Steel 1,191,829
Aluminum 5,797,773
Copper 333,407
Total 13,922,976
Table 3. Responding U.S. Metalcasters' Employee Statistics.
Item 1999 2000
Average number of employees 101,169 101,653
Production and related workers:
Average number 85,134 85,505
Hours worked (1,000 hrs.) 178,896 181,099
Wages paid ($1,000) 2,782,103 2,848,880
Average hourly wages ($/hr.) 15.58 15.78
Productivity (tons/1,000 hrs.) 58 58
Item 2003
Average number of employees 89,230
Production and related workers:
Average number 74,046
Hours worked (1,000 hrs.) 157,113
Wages paid ($1,000) 2,742,297
Average hourly wages ($/hr.) 17.57
Productivity (tons/1,000 hrs.) 62
Table 4. Average Annual Prices for Metallic Raw Materials
and Energy
Metal 1999 2000
Aluminum:
Scrap 46.41 45.17
Ingot 65.7 74.6
Copper:
Scrap 67.55 75.55
Ingot 72.09 83.97
Iron:
Pig Iron 106.43 120.97
Ferrous scrap (composite) 80.56 79.30
Energy source 1999 2000
Electricity (cents/kw-hr.) 4.43 4.64
Natural gas ($/1,000 cu. ft.) 3.12 4.45
Metallurgical coal ($/ton) 32.63 32.70
(Cents per lb.)
Metal 2001 2002
Aluminum:
Scrap 42.84 46.79
Ingot 68.80 64.9
Copper:
Scrap 66.55 68.88
Ingot 72.64 71.62
Iron:
Pig Iron 107.50 112.35
Ferrous scrap (composite) 64.14 73.82
Energy source 2001 2002
Electricity (cents/kw-hr.) 5.04 4.88
Natural gas ($/1,000 cu. ft.) 5.24 4.02
Metallurgical coal ($/ton) 35.12 39.10
Metal 2003
Aluminum:
Scrap 49.53
Ingot 68.1
Copper:
Scrap 76.45
Ingot 80.99
Iron:
Pig Iron 144.71
Ferrous scrap (composite) 116.34
Energy source 2003
Electricity (cents/kw-hr.) 4.95
Natural gas ($/1,000 cu. ft.) 5.78
Metallurgical coal ($/ton) 38.09
Table 5. Responding U.S. Metalcasters' Financial Results for
Rough Casting Operations (fiscal years 1999-2003)
Item 1999 2000
Net sales (tons) 9,853,876 9,935,643
Value ($1,000)
Net sales 13,930,587 14,415,274
Cost of goods sold:
Raw materials 3,944,353 4,208,142
Direct labor 2,654,631 2,731,731
Energy 702,790 840,142
Other factory cost 4,412,869 4,767,425
Total cost of goods sold 11,714,643 12,547,441
Gross profit 2,215,944 1,867,833
Selling, general and administrative 810,574 872,360
Operating income 1,405,370 995,473
Other income and expenses:
Interest expense 181,242 193,971
All other expenses and income 186,716 86,570
Net income before taxes 1,037,412 620,064
Ration to net sales (%)
Raw materials 28 29
Direct labor 19 19
Energy 5 6
Other factory cost 32 33
Cost of goods sold 84 87
Gross profit 16 13
Selling, general and administrative 6 6
Operating income 10 7
No. of establishments
reporting
Operating losses 95 118
Financial results data 447 465
Item 2001 2002
Net sales (tons) 8,913,411 9,065,311
Value($1,000)
Net sales 13,217,612 13,520,790
Cost of goods sold:
Raw materials 3,787,996 4,117,107
Direct labor 2,565,273 2,583,277
Energy 900,856 824,616
Other factory cost 4,578,677 4,534,858
Total cost of goods sold 11,832,803 12,059,858
Gross profit 1,384,809 1,460,932
Selling, general and administrative 853,263 809,766
Operating income 531,546 651,166
Other income and expenses:
Interest expense 173,127 128,802
All other expenses and income 204,387 48,161
Net income before taxes 653,607 716,208
Ration to net sales (%)
Raw materials 29 30
Direct labor 19 19
Energy 7 6
Other factory cost 35 34
Cost of goods sold 90 89
Gross profit 10 11
Selling, general and administrative 6 6
Operating income 4 5
No. of establishments
reporting
Operating losses 167 168
Financial results data 472 477
Item 2003
Net sales (tons) 9,099,913
Value ($1,000)
Net sales 13,655,176
Cost of goods sold:
Raw materials 4,267,961
Direct labor 2,622,699
Energy 870,236
Other factory cost 4,644,012
Total cost of goods sold 12,404,908
Gross profit 1,250,268
Selling, general and administrative 832,874
Operating income 417,394
Other income and expenses:
Interest expense 148,152
All other expenses and income 100,165
Net income before taxes 717,716
Ration to net sales (%)
Raw materials 31
Direct labor 19
Energy 6
Other factory cost 34
Cost of goods sold 91
Gross profit 9
Selling, general and administrative 6
Operating income 2
No. of establishments
reporting
Operating losses 183
Financial results data 477
Table 6. Pricing Methods Identified by Responding U.S.
Metalcasters
Number of
Method used to determine price responses
Negotiated between producer and
customer for each job 250
Negotiated between producer and
customer on a 1-yr. or less contract 124
Negotiated between producer and
customer on a contract of more than 1 yr. 96
Price set by producer
Price set by customer 91
Price set based on imported product price 35
or by imported product offer price 30
Note: A total of 403 firms responded. Many indicated more
than one price determination method.
Table 7. Responding Domestic Producers'
Comparison of Price Changes of Domestic
Castings in the U.S. Market, 1999-2003
Price change in Number of
U.S. market responses
Increased:
By 0-10% 59
By 11-20% 42
By 21-30% 9
By 31% or more 1
Unspecified amount 3
Total responses 114
Stayed the same 63
Decreased:
By 0-10% 74
By 11-20% 36
By 21-30% 14
By 31% or more 3
Total responses 127
Table 8. Responding U.S. Casting Purchasers' Methods to Lower
Purchasing Costs of Domestic and Foreign Castings
Domestic
Methods to lower purchasing costs of castings castings (1)
Request casting producers to reduce price to 221
maintain business
Shift purchases to foreign-origin castings 139
Request casting producers to meet target prices 105
Change method to calculate pass-on costs 63
Impose periodic price reductions 43
Use online reverse auctions 25
Require rebates 25
Shift purchases to domestic-origin castings N/A
Foreign (2)
castings
Request casting producers to reduce price to 147
maintain business
Shift purchases to foreign-origin castings N/A
Request casting producers to meet target prices 69
Change method to calculate pass-on costs 32
Impose periodic price reductions 37
Use online reverse auctions 17
Require rebates 19
Shift purchases to domestic-origin castings 22
(1) A total of 339 firms responded.
(2) 2 A total of 241 firms responded.
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