A few good machines

"Exports are cushioning America's downturn. But for how long? AMID the ageing brick warehouses of South Boston, an assembler at the Cole Hersee switch plant inserts the pin into a roller connecter, flattening each end with a metal press to keep it secure. With the economy in a funk, you might expect such an old-style manufacturing firm to be struggling. But many of the company's switches are destined to regulate the power flow on the rigs that Caterpillar, an Illinois-based heavy-equipment manufacturer, exports in skyrocketing volumes to Asia and Latin America. According to Don Mayer, Cole Hersee's vice-president, the company's revenue grew a tad last year. Domestic demand for many of its wares slowed, but sales to Caterpillar rose smartly. That, writ large, is the story of America's economy. The housing bust, the credit crunch and a weakening labour market have dragged down domestic spending. The economy has probably slipped into recession--but exports are easing the pain. ..." (2008-3-13)

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