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Cutting Tool
Cutting Tools Suppliers Against Protectionist Measures
" Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidise it " - Ronald Reagan
These are tough times for the global economy as the recovery is less then desired. The currencies are being manipulated, the so called champions of globalization are thinking about protectionist measures and the threat of a wall street like downfall still looms large on the heads of many states. In the midst of all this lies the perplexed and sceptical pawns of this big game - the exporters, suppliers and the manufacturers.
In the era of globalization where we all are interconnected, a small change in some other part of the world affects the all and sundry. The upcoming trends and challenges have the potential to change the rules of the game within a short duration i.e. pawns could become the kings and kings might become the pawns, within no time. The cutting tools suppliers and exporters too know that, they wouldn't remain unaffected from the current developments.
One of the factor which worries most of the nations is the increasing impact of the Chinese economy. The China is extending its trade, investment and influence to each and every corner of the world. It seems, we are in the middle of a geopolitical shift and whenever such a shift happens, the repercussion are felt all over.
Coming back to the cutting tools industry which is currently going through a transformation, there could be a shift in its power centre too. Common concerns like growth in sales, complex labour issues and the technical advancement are the few factors which could change the industry dynamics.
Till recently, cutting tools used to be considered as an economic indicator as they are extensively used in shaping, grinding, polishing, drilling and other engineering applications in almost all the industrial settings and holds a vital place in the manufacturing world.
Amid present circumstances the cutting tools manufacturers are busy looking for more ways to remain profitable and to increase their overall production. Despite the backlash, the US companies are trying to outsource their manufacturing operations to low cost destinations. The Indian cutting tools manufacturers have decided to collectively voice their concerns against any protectionist measures which may be announced in the near future as they feel it is a policy which the west uses according to its convenience.
As of now, Indian cutting tools exporters are in a situation to negotiate better margins from the position of strength and procure more business for the future provided they don't become complacent in terms of quality delivered or meeting the deadlines. Needless to say, It would be interesting to a keep a watch over the progress of our cutting tools exporters, over the next few years.
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About the Author
I am a B2B industry analyst. I write about the export industry in India and abroad. My articles attempts to track the EXIM community's present issues and future challenges in the various industry segments. Hope I am able to provide some valuable information to the exporters and manufacturers in India and across the globe.
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