Wednesday, February 15, 2012

Made in China a problem? Whose fault is that?

I am in a position to oversee returns at my job. In the course of the day I have noticed some returns being made solely because of their point of origin, in particular, China. "Made in China" is a sore point for some it appears. I do not want this to be taken as a China bashing post but rather a post asking the American public to look at themselves and their values that drive the market. I have reflected upon that fact and in my musings, I would like to make some observations.

- If made in China is a problem for somebody, why don't they check the point of manufacture BEFORE buying the product and not after?

- How do you survive without products made in China? It seems a large preponderance of products, especially electronics are made there. Either entire assemblies or major components or subassemblies come from there. No televisions are made in North America anymore. Curtis Mathis in Canada ceased operations years ago. and this leads me to the real question -

_ Why did it happen? Why did China become the major manufacturer of so many of our products especially electronics? Many will jump on the cheap labor and the slavery conditions allowed there and in other countries overseas and various economic policies But I want to look at the side of the coin so to speak that nobody really wants to acknowledge.

The reason the Chinese have taken so many of our jobs (as well as other countries) is that the American public / consumer cares about price over all else. I know we are in the midst of a long hard recession and that especially makes consumers look for the biggest bang for their buck but the recession is world wide. One way to help this country is to stimulate jobs in this country. Part of the problem is that the CEOs and Boards of Directors have exported our jobs overseas in order to maintain the greatest return for their stockholders. Greed is the appropriate word for it. Remember, "Every time we export our jobs, we import their poverty."

But the problem is also in part due to the American public's desire to get something "cheap". We want the best looking but not the best value. Artificial Christmas decorations are made in China. Why, because they are cheaper. I am thinking of a company whose name whose name I cannot mention that seems to make a lot of Christmas decorations and other electric products that don't seem to hold up well sand I see a lot of returns. Their products are made in China. I saw one return of a Christmas lights decoration that the consumer wrote on the box, "MADE in CHINA - Give Me a Break!" Couldn't that decoration have been made in America? Sure. Considering the cost of overseas shipment and import duties etc, it seems it could have been made in America at less cost (but not necessarily 'cheaper') with a better quality and have been very competitive with the "Made in China"product. But its not. I am sure somebody will point out start up manufacturing cost etc that make this prohibitive but my point is, we want what we buy cheap and in the end, we will buy at the lowest price whether it be Christmas lights or iPads made under labor conditions that are currently drawing media attention.

We cry out over human rights and work conditions but only so long as the price of our consumption does not go up. Several companies have tried to go the "Buy American" route (Wal-Mart comes to mind) but it doesn't seem to stick. The demand for cheaper goods rules as king over all.

Basically China is becoming a major manufacturing force because that's what the American public wants, the cost be damned. For the moment China needs us desperately. They are building a hydro-electric facility that is capable of supplying electricity far beyond any current or near term needs. News commentators have discussed how it seems intended for a developing manufacturing explosion. China needs us for the moment to buy for them so they will have money. As their manufacturing base is established and grows, their own population will have better jobs and more money and they their need for us will greatly diminish. They are on their way to becoming an economic superpower.

Why? Because the American public wants it. The American public wants the cheapest goods. That pressure is felt at the highest levels as CEOs and Boards of Directors approve using Chinese products to ensure profitability of their products. The GM tracker used to be built in Canada with a Chinese built engine. Chevy didn't advertise that fact too loudly in the midst of Mom, Apple Pie, and Chevrolet commercials.

The bottom line? Made in China is a way of life and the only way to change it is for the American public to change their values. Americans need to be willing to pay a little more for American goods. Forget tariffs, tariffs are band-aids, not solutions. the solution is for the American public to demand quality and made in America and I mean as more than a slogan on a wall or a 10 minute advertising commercial It needs to be our way of life because in the end, what is at risk is our way of life.

If you want to see America be the major economic force in the world that it used to be, then we need to demand American quality. We need to be willing to sacrifice the way Americans sacrificed to win the big wars. After all, we are at war right now, a war fought not with tanks and bombs but dollars and yen - and currently, America is losing and the future is not encouraging. It is up to the American public, not the government and politicians to ensure victory.

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