In the late 1990s, dot-com companies that had yet to generate a profit were trading at astronomical valuations. Traditional measures like price-to-earning ratios, we were told, were obsolete in an era when eyeballs and clicks were the metrics du jour. It didn’t take long, though, for the market to crash. It turned out that the longstanding investment rules developed by the likes of Benjamin Graham and Phillip Fisher were timeless and trusty, not outdated and crusty.
Over the past seven years, there has been another new normal. Over that time, the U.S. has failed to enjoy even a single year of 3% economic growth. Not surprisingly, this lackluster performance has led to diminished economic opportunity and reduced tax revenues. Even as the unemployment rate gradually inched back to 4.9 percent, the numbers of people who dropped out of the workforce has been staggering.
This has been the slowest economic recovery over the last 75 years. Some people have bought into the argument that we are destined to perpetual growth rates of 1 to 2 percent. Yet, this seeming new normal need not be a permanent reality. With the right public policies, robust growth is again possible. With that growth would come more demand for goods and services, better opportunities for entrepreneurs, and more jobs. In a phrase, a better future.
For buyers and designers of castings, the American Foundry Society plays a key role in assuring a better future. AFS is waging an aggressive government advocacy program that advances policies conducive to economic growth and opposes unnecessarily burdensome regulations. That work helps to control non-production costs that would otherwise have to be added on to the price of castings. Corporate memberships in AFS—by metalcasters, suppliers, and casting purchasers—make this advocacy work possible.
On the workforce development front, many OEMs and other casting buyers take advantage of AFS classroom courses. A total of 38 classes have been redesigned over the last several years. Moreover, in July 2016, the society introduced a series of e-learning modules on key casting-related topics, with many more still to come. This makes professional training more affordable and convenient than ever.
AFS is also playing a leading role in technology development and transfer, which positions the casting industry to meet the ever-evolving technology needs of its customers for many years to come.
This issue of Metal Casting Design & Purchasing features two articles on designing and cost estimating for additive manufacturing, plus a look at the steel lost foam and iron pipe markets. Finally, a look at casting technology development on page 34 illustrates how metalcasters use engineering and knowledge to eliminate defects and provide quality castings to their customers. All of these contribute to a better future for casting purchasers.
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