Providing answers to trade questions. (Editorial).

MODERN CASTING's first objective is to provide its readers with information to assist them in producing castings and managing a successful foundry. In pursuit of this, our staff talks to industry leaders to determine what the most pressing obstacles are from production, technical and management perspectives. Then, we set out to develop and deliver the information that can assist in understanding and overcoming these obstacles.

For today's foundry, no obstacle is greater (nor threatens our survival more) than low-cost foreign competition. In response, we have developed this September issue to provide information on this topic, which has a lot of questions but few answers.

Through four features and the Shakeout page, we report that the battle against low-cost offshore competition is a mix of economics, government policy, technology and automation, legal action and moral beliefs. The result from this mix, however, is a single question that must by answered: What must my foundry do to compete against offshore competition?

Some of the suggestions from our pages include:

Legal Action--"When beginning the trade case process (for example, Antidumping or Countervailing Duties), it is critical to focus on where the imports are coming from and whether domestic producers can get relief under the law," said Paul Rosenthal, a trade lawyer who has and is working with the domestic Municipal Casting Trade Council, in an article on the keys to trade case success (p. 31). "The questions to ask, answer and have the facts to prove include: Are market prices being suppressed?; What is the import castings' share of the U.S. market demand?; If the foreign competition is undercutting U.S. producer prices, are the U.S. foundries losing sales?"

Rosenthal has worked with U.S. municipal casters over the last 20 years fending off foreign producers in China, India, Brazil, Mexico and Canada with tariffs and other duties. In a question-and-answer article, he relays the steps foundry groups must take if they expect to pursue legal actions.

Looking in the Mirror--In a roundtable discussion on trade held by MODERN CASTING (p. 33), foundry executives stated that the keys to competing against offshore competition are automation, controlling your own destiny, and understanding your customers and your market.

"Innovation and productivity are a must and it doesn't matter what size you are," said Charles Kurtti (retired), Neenah Foundry Co. "Small foundries often want to sit back and wait and see what happens. That is death. You have to control your own destiny."

"You have the unique advantage of being closer to your customer than those overseas," said Raymond Monroe, Steel Founders' Society of America. "You must exploit that advantage by understanding your customer's unique needs because you will not be able to compete on price."

Much of the advice shared in the roundtable is a reminder that no stone can be left unturned in your quest to optimize your position against low-cost competition.

Securing Overseas Partnerships--In a July MODERN CASTINGsurvey of U.S. foundry operations (p. 29), possible long-term "foreign" strategies to be considered by foundries were addressed. Surprisingly, 38% of the respondents to the survey believed purchasing foreign-produced castings to resell domestically may be an option while 34% felt formal joint-venture agreements with offshore foundries are worth exploring.

These results sharply contrast with some of the sentiment screaming across our industry the last couple years. In global metalcasting community, the lines drawn by borders and oceans have evaporated and some U.S. foundries may have to develop new partnerships if they are to market themselves as the lowest-cost, engineered global solution.

Once you have read this issue, I would suggest you keep it handy on your desk. As the import forecast suggests (p. 24), low-cost foreign competition is not going away. Our industry's future success rests in its ability to confront this obstacle, attacking its weaknesses with our strengths. I am not going to go as far as to say that this magazine issue represents a blueprint for a successful future, but the sage advice offered by foundrymen, a trade attorney, a casting industry forecaster, the AFS Commission on Trade and our staff warrants your close attention today and in the foreseeable future.

Alfred T. Spada, Executive Editor