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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (7318)	9/2/2001 6:43:36 PM
From: Second_Titan	Respond to of 23153

Businessweek has an article this week citing that increased application of JIT practices could permit inventory to be worked off lower than some people think. But with electric prices and NG prices low, this should be a positive influence on increasing manufacturing. I hope some of these companies learned something and will use this opportunity to lock in lower NG costs now. 2-3 quarters down the road things could be quite different.

To: Think4Yourself who wrote (7318)	9/2/2001 7:06:06 PM
From: Gottfried	Read Replies (1) \| Respond to of 23153

John Q., the link to the JIT article businessweek.com@@IxLmqmQQscl6tAcA/premium/content/01_37/b3748049.htm [BW allows public access by Monday noon] The last paragraph states more inventory needs to be worked off, but that Census Bureau report was issued back in June... So what is the optimum level of inventories to spur a recovery? According to the Census bureau, the inventory-to-sales ratio for all businesses hit 1.43 in June. That's still well above the low of 1.37 hit in March, 2000, near the height of the tech boom. Morgan Stanley's Berner predicts businesses will continue to get back to that level or even lower. That means there could still be plenty of destocking left to do.