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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Lizzie Tudor who wrote (8305)1/21/2003 1:42:41 PM
From: Jack of All TradesRead Replies (1) of 306849
 
I don't think the stock market is effecting capex spending... I sell hitech equipment (Printed Circuit Boards) and nobody is using the stock market as a reason not to buy. The reason not to buy is the fact that biz is not stable, one week orders flow in, the next week nada. In my biz, China has come into the US and is buying all the high tech equipment going for 10 cents on the dollar. Thus they are building as good a product as their American competitors, but for 40-50% cheaper.

At one time many of the US Board Shops thought the quick turn Proto Type market would stay in the US, but 5 day spins are now going overseas. Companies can now get their product in 2 days from China, so they only need 3 days to build it. I have some US companies turing product in <24hrs and the Chinese will not be to far behind that in the next year or so.

My answer to counter act this is to increase the time in customs. Randomly delaying products for a week or so will deter some from going outside, Bush could use the terrorist argument for that. At least corporations will be inclined to have a local and off shore source for their products.

BTW, this would hurt my company as my products are made in Japan, but would give me a chance to sell something... No more PCB mfg in US and I have no one to sell to... <NG>
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