Flender/Flender Gear Units/Bevel-helical speed reducers B3
oducers subsequently have made the investments in machinery' necessary to produce hardened and ground marine gears. Agreements have been established

between .. and West German marine gear producers that allow for design and technological input from the West German firms,

if necessary, on .. Navy gearing contracts. For production of marine gears, Falk and GE are licensed by RENK and

Cincinnati Gear is licensed by BHS. Falk is also cooperating with RENK in .. Navy program. RENK designed the gearing

which Falk is manufacturing. The .. Navy has always had requirement limiting nuclear propulsion business to .. citizens and ..-owner companies. In late 1, the Navy required that naval gearing also have substantial 6-1 .. content This policy was established in the form of letter from the Assistant Secretary for Procedures that is included in Navy contracts. However, producers say that although some procurement policies enhance their competitiveness, others are not favorable. 2 Firms believe the costs of compliance with regulations for companies doing business with the .. Government are verging on prohibitive. Offshore manufacturers do not have to comply with the rules, and so do not have to absorb these same costs. 3 2 Compiled from data submitted in response to questionnaires of the .. International Trade Commission. 2 Ibid. .. consumption of small marine gearing continued to increase through most of 1, and the .. share of the market remained stable. However, in late 1, sales of pleasure craft softened due to saturation of the market. After 6 years of solid growth, sales of new boats dropped off, due, in part, to rising interest rates and uncertainty about the economy. tapering off in sales of recreational boats generally results in corresponding drop in demand for smaller marine gearing. 6-1 Chapter 7 Comparisons of International Competitiveness Between .. and Foreign Industries Factors affecting the competitiveness of