The Mheda Journal

In the February 15 issue of The MHEDA Connection, MHEDA’s e-newsletter, we posted a story called “China Decries Dumping Duties.” It was an update on the ongoing battle between U.S.-based wire decking manufacturers AWP Industries, ITC Manufacturing, J&L Wire Cloth, Nashville Wire Products and Wireway/Husky Corp. and the Chinese government regarding the cost of imported wire mesh decking.

In response, Steve Johnson, vice president of sales at Nashville Wire Products, and a member of MHEDA’s Manufacturers Board of Advisors, sent us the following letter from the counsel for the U.S. Wire Decking Coalition

Please direct any responses or comments to Steve at sjohnson@nashvillewire.com.

“Recently, the Chinese government expressed objection to the U.S. imposition of antidumping and countervailing duties of imports of a variety of downstream steel products, including imports of wire decking. The Chinese Government asserts that these measures are straining its economic relationship with the United States.

“What the Chinese Government neglects to mention is that the actions by the wire decking manufacturers in filing trade cases, and the imposition of duties by the U.S. government, are fully consistent with the international trade agreements China and the United States signed. The international agreements expressly permit the imposition of these duties when unfairly traded imports injure U.S. manufacturers. In response to petitions filed by domestic wire decking manufacturers, the U.S. government preliminary found that wire decking is being dumped, or sold at less than its fair value, in the U.S. market by huge margins ranging from 43 to 289 percent. The U.S. government also found that the Chinese government is providing  illegal subsidies to Chinese wire decking producers. Final decisions in these case are due in May.

“Similarly, in a preliminary decision, the U.S. International Trade Commission concluded that these unfair trade practices are injuring domestic wire decking manufacturers. The Commission found that the unfair imports from China significantly undercut U.S. prices and caused the domestic industry to suffer declines in production, shipments, employment and profits. In an already difficult year due to the nationwide recession, the increasing volumes of low-priced imports from China have decimated U.S. wire decking manufacturing operations and cost many workers their jobs.

“Moreover, the Chinese Government fails to mention the widespread practice by many Chinese industries of illegally circumventing the trade orders. Chinese exporters advertise to U.S. customers their willingness to transship merchandise or mislabel the country of origin of the product to evade the duties lawfully imposed.

“So, while China may ‘decry’ these duties, it cannot argue that the imposition of the duties is unwarranted or unlawful. In fact, the duties imposed are not punitive at all, but are merely intended to offset the amount of the unfair trading practices and to level the playing field for U.S. manufacturers. Enforcement of U.S. trade laws to protect domestic manufacturers and their employees from unfair trading practices is expressly recognized as lawful internationally and should not strain relations between countries. The Chinese government should be concerned with living up to its own trade obligations by ceasing illegal subsidies and cracking down on scofflaws who seek to circumvent U.S. trade orders.”

–  Kathleen W. Cannon, Kelley, Drye & Warren

Pretty heady stuff. You can leave a comment here or send it directly to Steve at sjohnson@nashvillewire.com.

So I’m little late getting to this, since the press release is dated January 12, but I still wanted to talk about this topic because I know MHEDA members find it increasingly important.

The state of California has approved the nation’s first mandatory statewide green building standards code, according to an article on logistics.about.com. Effective January 1, 2011, the code, known as CALGreen, requires all new buildings in the state to be more energy efficient and environmentally responsible, including mandates that every new building reduce water consumption by at least 20%. Other requirements say that 50% of construction waste be diverted from landfills and installation materials must emit “low amounts” of indoor pollutants. “The California Air Resources Board (CARB) estimates that the mandatory requirements will reduce greenhouse gas emissions by the equivalent of 3 million metric tons of carbon dioxide in 2020.”

As material handling distributors seek to do more and more for their customers, I know that many MHEDA members have pointed out building codes as one of the things they need to be constantly aware of. These regulations are constantly changing and can vary drastically from municipality to municipality. With California adopting this measure, other states can be sure to follow.

Read more about this new regulation here at http://logistics.about.com/b/2010/02/03/new-green-california-building-code.htm.

As part of The MHEDA Journal’s Annual Industry Forecast, we heard from multiple members, both distributors and suppliers, that new products would help them get through the still-sluggish economy and drive new sales.

One such company is Nashville Wire Products, who is introducing Protect-it rack column guards. The press release reads, in part, “Protect-it strengthens Nashville Wire’s position by adding an additional rack accessory layer. Now Nashville Wire can provide an accessory for both its clients rack beams and uprights.”

This is just one example. As we get deeper into the first quarter, more new products will be unveiled. I can’t wait to see what else is out there!

The First Quarter issue of The MHEDA Journal is now available online at www.TheMhedaJournal.org. It is being mailed out to subscribers today. As I’ve been telling you for a while, this issue is our annual industry forecast issue, featuring commentary from distributors, suppliers and other industry associations about their expectations for 2010. This special “10 issue” for 2010 features a series of Top 10 Lists to bring in the new year.

Check it out today!

Last year at this time, MHEDA distributors were in much the same boat as they are now. They wanted to be optimistic about where business would be next year, but they were hesitant. That’s much the same this year. In our annual Industry Forecast that will be mailed out in print on January 15, 68% of MHEDA member distributors interviewed anticipate a sales increase in 2010. Reasons ranged from product diversity to increased marketing to “It can’t get much worse.”

That’s slightly more than double last year’s rate, when MHEDA members were bracing for the downturn and only 32% were anticipating increases.

For more information on the 2010 forecast, read The MHEDA Journal Online on January 15.

I was looking at MHEDA’s Web site today and noticed an announcement there that says only 4 booths remain for next year’s Exhibitors’ Showcase at the Annual Convention next May in Marco Island, FL. So if you’re planning to exhibit a booth and have not yet registered, act now! Call the MHEDA office at 847-680-3500 and let them know!

Finally, that moment we’ve all been waiting for…the new issue of The MHEDA Journal is now available online. As is typical with our Fall issues, the Fourth Quarter 2009 issue is all about Distributor-Manufacturer Relationships.

Even in a down market, MHEDA Members were still able to collaborate for successful sales. We were able to contact 18 distributors about some of their best sales of the year. If you didn’t get a chance to participate, that’s OK. We also run Sales Success Stories throughout the year in The MHEDA Connection newsletter, so feel free to give us a call to try to get a story in.

Another major highlight of this issue is a series called “Hitting The Mark,” where 12 individual manufacturers and distributors describe the steps to take to get your M-D relationships one rung closer to perfection.

There’s a lot more in this issue, so take a few minutes to hop over to www.themhedajournal.org and take a look. Let me know what you think!

On Thursday, October 1, MHEDA published a new issue of MHEDA Edge, the association’s online magazine for young professionals. Although the issue, as always, is targeted at the young up-and-comers in the industry, I think this one is full of information that everybody can use.

Titled “The Economy: Stepping Back From The Edge,” the October issue is all about finances. It includes interviews with CFOs, tips for managing a parts department, and a recap of MHEDA’s Rental & Used Equipment conference. All important things, but I think the most useful article is from material handling consultant Matt Senecal, who explains myriad startegies for making money in sales, service, parts and rentals. 

I encourage you take a look at it and pass it along to your employees and co-workers. There’s a lot of important information in this issue. Kudos to Edge Editor Dan Vest for tackling an important issue in today’s marketplace!

Earlier this week, the U.S. International Trade Commission issued a unanimous finding that there is “a reasonable indication of material injury to the U.S. industry producing wire decking caused by unfairly traded imports from China.” This finding is the first step toward a finding of illegal dumping of wire deck imports by China.

The initial petition was brought by domestic wire decking manufacturers and MHEDA members AWP Industries, ITC, J&L Wire Cloth, Nashville Wire Products, along with Wireway Husky, on June 5. On June 25, the Commerce Department initiated an investigation, and the preliminary ruling by the Trade Commission was handed down on July 20. You can read more about the specifics of the investigation here.

It will be interesting to see how this plays out. China has denied the claims of dumping, while the companies who brought this petition have been clamoring about it for years. (See the sidebar at the bottom of this article about “The Dumping Problem” that was published almost two years ago.) The findings in the International Trade Commission’s report say that the Chinese imports are priced up to 315 percent lower than their domestic counterparts. That’s pretty significant.

The next step in the process will be another ruling by the end of August as to dumping and subsidies by the Commerce Department.  Look for continued updates in this space and in future issues of The MHEDA Connection and The MHEDA Journal.

Today ProMat opened without the pomp and circumstance of yesterday’s ribbon cutting, but with noticeably more attendees. Chris and I spent today walking around the show and everyone seemed to be thrilled with the day’s turnout.

As for the show itself, for a newbie like myself, there was quite a bit to take in. I sat in on an ID Systems seminar and developed a pretty good understanding of what fleet management strategies are available. Also, I found the engineered systems section of the show to be particularly interesting. It’s amazing how fast and efficient these different sorters and order pickers can be. Like Chris mentioned, the voice technology was also quite impressive.  

I  have to take the time to tip my hat to the association’s distributors and suppliers who took the time out of running their booths to answer my questions and help me learn about the industry. The same can be said for the companies who hosted hospitality events this week. Aside from the industry knowledge, the biggest thing i will take from this week is how much MHEDA members care about their association and their industry. It’s something I’m proud to be becoming a small part of.

Dan Vest, MHEDA Edge Editor