This is an online version of a presentation I gave to the Chicago branch of the NASF. If you were there, welcome. I’m glad you saw the importance of these issues and followed up. Please draw freely on the ideas presented.

~Gardiner Rynne

Globalization & Metal Finishing:
Emerging Trends

globeaqua101
When I was confronted with presenting this information in early 2009, I realized it was going to need some significant retooling. We face a fundamentally different world than we did at the beginning of 2008. Consider that in one year’s time the economic landscape of the entire world has been remade. To think our industry is exempt is a refusal to face reality. It goes far beyond just the economic slowdown. For some of us, a year has meant the shift from growth mode to survival mode. In relation to the topic at hand, others of us have seen our strategy vis-a-vis international competition transition from aggressive offshoring to conservative restructuring at home. That said, every iteration of this presentation has always been forward-looking, and the strategies we looked at the tail end of the boom remain relevant in today’s more troubled times.

A year ago, China loomed the growing titan, and India, whether as partner or competitor, could not be ignored. As we’re going to see in a moment, the rate of China’s fall might match, or even surpass, the speed of its rise to prominence. India’s situation is somewhat different, but that nation is by no means exempt from the economic maelstrom that has enveloped the globe.

That said, let’s talk about globalization. What is it? This is a definition taken from a somewhat academic treatment of the phenenon, In Defense of Globalization, by Columbia University’s Jagdsih Bhagwati.

Globalization is...

... the integration of national economies into the international economy through trade, direct foreign investment (by corporations and multinationals), short-term capital flows, international flows of workers and humanity generally, and flows of technology.


~Jagdish Bhagwati

Despite all that has taken place past months, this definition is still useful. And despite appearances to the contrary, this process of globalization has not stopped taking place. The process continues, and one could argue, the pieces are being set in place for it to accelerate. That discussion is beyond the scope of this talk, but the recent coordination of monetary policy globally may be the most significant move toward a truly global economy that we have yet seen.

So here we go. Let’s look at the global players...

NEXT