7.29.2009

‘Chinese Labor Cost is Not That Big a Factor’

We lean advocates tend to rant about how so many businesses wrongly believe they need to outsource production to other countries, especially those in Asia, in order to be competitive. We argue that a lean strategy, along with recognition of the problems and costs of a far-flung supply chain, can make up for lower costs overseas.

But maybe some businesses are smarter than we think.

These thoughts came to mind after I read an article in The New York Times about the Obama administration’s lack of a coordinated policy to revive manufacturing in the United States.

The article includes comments from Douglas Bartlett, who is closing a circuit-board factory in Illinois. Bartlett says he was done in by cheaper products from China, and he contends that the Chinese products are cheaper because the Chinese undervalue their currency.


“I can compete against Chinese entrepreneurs, and Chinese labor cost is not that big a factor,” he said, “but I cannot compete against the Chinese government’s manufacturing policies.”


Currency manipulation is a serious issue, though it is not my intent to address it here. What I find fascinating is the first part of that quote, in which Bartlett says he CAN compete against the Chinese if there is no government interference.

I am saddened by the closing of Bartlett’s factory, and I agree that currency manipulation issues need to be addressed.

I simply wish to make the point that Bartlett made so well – U.S. businesses do not have to go running after cheap overseas labor in order to compete.

1 comments:

Anonymous said...

Superior pretend sacks, may be a personal appearance the fact that coalesces gear together with products parallel that will the ones sported by just local consumers with in and around everything. Centre Southern replica rolex is known a good relation for Bohemian fake patek philippe watches. Bohemian jewelry together with necklace have grown famed all around the community. You could husband and wife him or her utilizing from either of the gear dress in, together with possess it all utilizing layout together with richness. Bohemian layout together with gucci replica handbags is certainly reckoned to be ethnic, even so it defines even more of each outlook. You have certain interesting wearing a good Boho posh appearance, acquire at the time you add more fake gucci bags together with products into the variation. Possibly not, it could possibly survive with 1 that will 6 or simply would be a couple even more calendar months. Necessary to resist together with like you would hold it all makes the decision a comprehensive point in time length of time. You can expect to really fall in love with narrow elephant bangles, for anybody who is a good diehard natural charm cooling fan. Any miniature components of great Bohemian dior replica could wow everyone. Whenever you are researching for challenging variations that will be shared with vivacious designs, consequently be positive that will look at any mosaic bangles and also turquoise dangle charms.