Aug 28, 2007

China, getting us ways you never thought of...

China, if it is not poisoning our Rovers & Mittens, affects the pricing on not only retail products, but it affects the cost on our construction here in the United States. As they lower some of the retail prices, they have raised the cost of construction in this country. Here is a comparison.

My father-in-law has manufactured high quality, American made, Innerspring Futon Mattresses for Noblehouse Trading and other retail stores for over 20 years. He has battled the Chinese imports of futon mattresses that are low quality and inferior. As his customer's have switched to stay "price" competitive, Noblehouse Trading stayed true and weathered the storm. Many of his past customer's have returned this past year, due to the uncertainity of delivery & quality of these Chinese products. But the damage of lower prices and revenues have taken their toll.

The situation above is not really any surprise to most Americans, but did you know that China , right now, is the largest purchaser of Portland Cement in the world. Portland Cement is the main ingredient used in all of our concrete applications ( Highways, Walks & Drives, brick pavers, foundations, etc..). China is building a NEW City, from scratch, to host the 2008 Summer Olympics. This requires an unprecedent amount of concrete to be laid, which will use alot of raw materials, such as Portland Cement. As we ship (export) our Portland Cement to China, a shortage here in the United States has raised the cost across the board to contractors. Blue Fox Brick Pavers, Titan Interlock, Unilock, & Fendt Builders Supply, have all experienced a 5% increase in concrete products the past 6 months. Just imagine the amount of concrete poured in this country. Just a penny per pound will result in an increase of billions of tax payer dollars for highways, city streets, etc.. ! Though it may on the surface look like a good economic move to export some products to offset the huge trade deficit, it comes at a higher cost for the end users here in the country.