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Jan 16, 2022·edited Mar 31, 2022

Hi Matt:

Been a bit since I talked to you (I believe). I was resurrecting a piece I had done on Malheur, the concentration of the meat packing industry, and how the ranchers were fighting the wrong battle. Not much has changed since then. Congress pretty much killed any activity to open the market back then. It remains to be seen whether McConnell's Repubs will work with Dems to open up the meat packing business.

People seem to forget what occurred in 2008-2009. I was working at the time for a German company manufacturing Automotive products for Chrysler, Audi, BMW, Mercedes, Skoda, etc. When the collapse of Wall Street occurred, MainStreet was impacted greatly as was automotive. The business closed up. Companies canceled their orders for chips and the Infineons, NXPs, OnSemis, etc. stopped growing wafers to be packaged into semiconductors at different facilities. This results of lasted 1-2 years before the industry recovered and supply was adequate again.

I remember Gettelfinger testifying to Congress about Labor and the results of direct labor in a product was less than 10%. He was correct and as a one time consultant, it was our findings too. Congress had it in for Labor as the cost causing automotive issues.

If automotive had maintained their orders, the product manufacturers would have made product. The Fords, GMs, Chryslers, etc. of the world will penalize a company with too much inventory and make them pay for it. Chrysler had delayed payment to our company until the owner told them he would close the plant and take operations back to Germany.

My point? Similar is occurring today. And more so as the pandemic is hazardous to Labor. Except, you do not need much labor to grow wafers. Companies have a habit of blowing themselves up to avoid costs for inventory, operations, and labor to pursue the holy grail of JIT.

I write for Angry Bear along with Dan, etc. I believe at one time I talked to you about may be doing an article or two there. You may have been busy with Yves then. I am better known as run75441.

Good article and on point when written and even more so now.

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