Issue link: http://read.dmtmag.com/i/65232
Chinese by increasing their purchasing power. On the other hand, Chinese products would become more expensive, and exports would decrease as a percentage of China's overall economy. Th is policy change would also redress many of the current world trade imbalances. We have already seen a deceleration in China's growth during the last few quarters, and Chinese offi cials are now projecting annual growth rates of 7.5 percent for the next fi ve years, instead of the 10 percent witnessed the past 25 years. Th is should be a concern to countries and foreign companies depen- dent on supplying China with raw materials. In a recent article published in the Wall Street Journal by Tom Orlik and Bob Davis, the authors remarked, "Last month, an executive from mining giant BHP Billiton said China's demand for iron ore, used in steel making, is fl attening out which hurts markets. Th e Australian dollar, which fell 5% in March, has continued to slide in April, partly on fears of reduced Chinese commodity demand. " A moderate slowdown in China's growth will inevitably leave some sectors facing an overcapacity problem. One such sector is the Chinese construc- tion equipment manufacturers, which has grown at a much faster rate than the economy during the past 10 years. Th is in turn will create overcapacity of spare parts manufacturers, in particular Undercarriage and Ground Engaging tool manufacturers, putting further downward pressure on prices in the near future. Keep in mind there are opportunities for our businesses when prices go up, as well as when prices come down. Make sure your business has the right strategy to protect your profi t margin… Roger Teran IDA President 2-5 October 2012 JW Marriott Marquis Toll-free:1-888-717-8850 Register online: www.idaparts.org Make Your Plans Now ! Miami, Florida 2012 CONVENTION SCHEDULE 2 OCT - TUES Patriot Engineering Facility Tour and Lunch for All Attendees 3 OCT - WED Golf Tournament at Doral Opening Reception 4 OCT - THURS Business Meeting & Seminars Continental Breakfast Board Meeting Ladies Shopping Tour Booth Set Up Company Tours & Reception 5 OCT - FRI Equipment/Parts Trade Show Continental Breakfast Cocktail Reception Closing Dinner and Dance (more updates to come) IDA UNIVERSAL May-June 2012 7