Friday, October 1, 2010
The Swing of Things
So, for about 10 years now we have maintained our manufacturing balance by producing both domestic and international volumes of goods. This balance has always provided an avenue for both the young start up and a large producer to leverage our talents and relationships to get the products developed they need. Recently, the market in Asia has changed, bringing the cost of goods skyrocketing quickly, with labor shortages the norm. Product is delayed, materials harder to come by, and the climate uncertain for those of us relying on what used to be the consistency of Asia with the ingenuity of the US. As prices in Asia rise, and labor difficulties mount, the ability for hybrid producers such as ourselves begin to take a different look. Our capabilities in the US have increased greatly, and more of our clients are seeing the need for US made goods. Is this a total swing back home? Not quite, but the balance of equity between the US and China is evening out, leaving questions as to how the low price retailers in the US will be able to satisfy their 'inexpensive minded' consumers... One thing is for sure, the culture and business climate overseas is changing, giving us a good chance to look in the mirror and respond appropriately.