I try to offer opinions that have value, but when foundry owners and operators talk, I listen, because even when they're torqued up about something I've written or said I figure that their experience gives them some insight that I ought to consider. When I blogged several weeks ago that the decline in the value of the U.S. dollar versus foreign currencies offered a glimmer of hope for domestic manufacturers, it was a comment about the "anxiety" of that news; the fact that this might be true was not something I was expecting to have confirmed so soon. To hear it reported straight from a foundry owner — well, a less humble person might claim he predicted it.

Let's be clear: the fact that the U.S. currency continues to lag on international exchanges is neither a good thing, nor a bad thing. Like all economic news, it is merely a fact. The advantages and/or disadvantage depend upon our particular circumstances. Just for a separate example, watch how stock markets react on days when employment figures are released: if employment levels are declining, the stocks of large-scale employers tend to improve. Markets don't care who gets hurt. They care who's got money.

So, the declining dollar is a rather unrevealing fact. It is bringing advantages to some businesses, like foundries, according to my correspondent, because many manufacturers are choosing to buy their castings from U.S. operations now that the cost of supply is more favorable. But, it surely will raise costs for consumers as essential goods and services grow comparatively more expensive. Those consumers may include foundries, too, who pay for raw materials, fuel, delivery charges, etc.

However, my correspondent had an even more interesting comment: the falling dollar will surely be good news for foundries, he predicted, but it won't save poorly run organizations. "There'll still be foundries going out of business," he declared, because the competition to perform well in other ways — product quality, production efficiency, customer service — will remain as important, as ever, perhaps even more important as new and returning customers will identify the preferred suppliers, separating the best from the rest.

Words worth remembering, I'd say.