This column is dedicated to the financial issues facing forging businesses. It provides guidance on financial matters to those who may not have a dedicated CFO on staff and additional financial insight to those who do.
An archived series from the Forging Industry Educational and Research Foundation (FIERF), a supporting organization to FIA whose mission is to assist the forging industry through technical education, research & development.
Yesterday I bought a simple, gas-powered Craftsman lawnmower with a Briggs & Stratton engine. It wasn’t very fancy, it wasn’t self-propelled and it didn’t have a lot of “bells and whistles.” It did, however, happen to be exactly what I wanted – a basic workhorse lawnmower to cut grass at my daughter’s rental property.
In prior articles (December 2021 FORGE and February 2022 Industrial Heating), we discussed the reasons behind the importance of understanding margins (price minus cost) for the seller of any product or service. Your Cost Model is the framework for calculating costs.
As an editor in business-to-business media, I have watched for more than 30 years as good-paying manufacturing jobs slowly disappeared from the United States toward foreign countries eager to build up their economic prospects through basic manufacturing and job creation.
The United States and the European Union (EU) released a joint fact sheet on October 31 announcing terms of a tariff agreement completed between the two global economic powers. The agreement in-cludes terms specifying replacing the United States’ tariff with a rate quota on steel and aluminum im-ported from the EU. As a result, steel and aluminum imports from the EU will be limited to historically based quantities without being subject to a tariff prior to entering the U.S., according to a Commerce Department statement.