CEO talks on U.S. manufacturing

The nation's manufacturing industry is in a prolonged depression and shows few signs of emerging in the near future, the head of the chemical company Rohm and Haas told about 50 students Thursday. "All companies in this [capital intensive] industry are suffering from a capital overload and an inability to raise prices," said John Mulroney, president and CEO of the company, which manufactures specialty chemical products. Recent environmental regulations have also caused prices to climb, he added. "Regulation is wild and nobody cares. This is why manufacturing in this country is dead?a lot of this stuff [regulations] is ridiculous and it is a sad situation." Mulroney, a University Trustee, also discussed problems of raising prices in a depressed economy, saying his company suffered from "an inability to raise prices and a capital overload." "Momentum has seen price increases as a natural thing?in recent years companies have had to pull back," he said. In some situations where customers ask for excessively steep price cuts, the company simply does not supply them any longer, he explained. When asked about NAFTA, Mulroney said he favors the pact. "It would be good for the company and increase employment north of the border," he said. "I guess I would be inclined to vote for it." Mulroney also encouraged students to develop their leadership skills. "Wharton, Stanford [and similar schools] have created the myth that if you have all the numbers you will achieve success?but this isn't the case," he said. "A leader galvanizes his people and creates an empowerment type of environment." Wharton senior Ralph Sutton felt that Mulroney was "a somewhat dynamic speaker?in touch with the world and what we are interested in, and relevant to students entering the business world?He's like Donahue, running around and getting involved." The Wharton Management Club sponsored the program as part of its Distinguished Speakers Series. "He has great insights into current problems, that's why we [brought] him here," said Wharton and Engineering junior Dominik Dolenec, the chairperson of the Speakers Series.