Personally I consider this a key piece to the stimulus package before Congress. Yesterday, coincidentally, the St. Louis Post Dispatch wrote a great article on how the stimulus package covers this provision and what the possible upside and downside is to the issue. You can find it here. I found all of the comments to be pretty illuminating, too, when you consider that these mostly are comments coming right out of the heartland–where manufacturing has been hit square between the eyes and there are little to none when it comes to actual factories–more like warehouses or distribution centers instead with a sales and marketing team, one product manager, one marketing manager (just lean, very lean).
When speaking to people who are actually making product here in the United States, the thought process is much the same….the cost of the product adds some 25-50% to the price and unless there is a really good reason for paying that, why do it? Wal-Mart has made importing from China a national past-time and for other stores to compete they’ve done the same thing.
As for cars, when you speak to a Lexus owner who also happens to own a GM Trailblazer their experience in customer service is the difference between night and day. With the Lexus they get letters for recalls and the car dealer replaces without any fuss. With the GM dealer it’s more up to the owner to chase down the defect as commonplace and demand, by going over the dealer’s head, that the part be replaced.
Right now I am in fact working on getting product made in America and distributing it not only here in the states but to export it. In the process I am finding that while the product itself is a wonderful idea and people love it, they need the pricing to be more competitive. As told by the above referenced person from industry, buyer’s at the retail stores could care less whether it was Made in America or not. They need for it to be competitive price wise in the market.
To me, now that I have gone through some of the fundamentals of getting a Made In America product off the ground, I also know that government is going to have to subsidize me somewhere along the line in order for me to be competitive: either in health care to offer better benefits and to where I am not footing that bill when trying to attract good people and definitely tax incentives where in hiring it is costing me less to hire those people, plus something that will help me get it started until I can create good economies of scale to the point where I am able to be just as competitive as product coming in from China and where the quality is, without question, better and/or there is a unique feature to the product that can’t be easily knocked off by the Chinese or some other already bigger established manufacturer who doesn’t have the same moral aptitude I have. That said, I am putting a patent on the product (just in case).
Frankly, from where I sit, it is all doable right here in the heartland, only if I get some help from the government. While I plan to pay people a decent living and offer benefits, it will NOT be the kind of wages some of these factory workers have been making from GM and Chrysler: the number I’ve heard circulated has been around $90,000.00 for some of those factory positions. Not bad work, if you can get it.
Give me a break….a large break. Oh, and my factory will not be union since I will offer benefits and safety out of my own moral obligation to the universe. I think of it as karma. Like Starbucks, if I think about the people I hire and know I am making an investment in them as well as my product and my business then I figure the sky’s the limit as long as none of us get too complacent.
Finally, I think I’ll just avoid selling to Wal-Mart. Funny how the chickens have all come home to roost. In the beginning, Wal-Mart was the go to guy for Made In America product.
Now when you have a Made in America product, you want to stay away from them. Ironic if it weren’t so sad.