Presented by William R. Myer, Geometric Machine & Design, Inc.
In today’s global market we are all faced with shrinking profits and tougher competition. This is a whole new world with unheard of challenges.
With the advent of the internet, we see large buyers with supplier auctions where suppliers bid for the business. We have one customer where their major product pricing was reduced 30%. How do they make up that kind of loss?
There are finished products coming in from countries such as China, Mexico, India and Brazil at below-cost pricing putting some manufacturers out of business. Large customers such as the automotive industry are demanding a 5% decrease in costs for next year’s orders. Sometimes they require matching prices of competitors from Taiwan or Korea or lose the business.
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