The economic disparity between nations today is not an isolated concern. Where once upon a time the east and the west knew nothing of each other or it would then be reasonable to say that both sides of our planet were independent of each other. But today the economic relationships between nations have become a dependency. No reasonable person could maintain the untenable position that an isolationist country or state could flourish, let alone survive.
In the United States this dependency is acute and I believe has come to a point where it’s beginning to compromise the economic future of this great county. I will not belabor the point but I think a brief history of what economic factors have contributed to the overwhelming amount of outsourced manufacturing.
Two factors are critical; the first is the rising of the minimum wage and the second is increasing taxation on small businesses. Regardless of all of the political banter the bottom line for business owners today is that is simply a better financial decision to get your products manufactures oversees. This is not to say the people oversees are taking their afternoon naps on piles of gold. They are astonishingly poor but the ability for foreign entrepreneurs to get cheap labor gives them the ability to produce product for much less than any American company.
All of the theoretical ideas aside, and I am mindful that you might not agree with my opinions, you will be happy to know that International Competition Examples there is a way for manufacturing in America to be more economical. This portion of the article is one of my own experiences.
I sell mannequins wholesale to retailers across the country. For many years I had my merchandise produced in China. My reasoning was that per item it was much cheaper which it was but I also have to admit that it was a trend. Everyone I knew in business was having their products Apprenticeship Programs In Michigan produced in foreign countries and in my inexperience I followed the trend. What I did not realize, and what I the most valuable idea I have to put forward today is that manufacturing in a forging country is only worth it if you are doing tens of millions of dollars is sales.
With my mannequin business I thought that I would be saving a great deal of money by producing the mannequins in China but what I did not factor in was that the dishonesty and corner cutting that I would have to go through was not worth the effort. I had to fly out there so many time to resolve issues I was literally aging prematurely.
So I went into business with a close to bankrupt plastic manufacturer here in the United States and it has mad the world of a difference.
