The new trend for American manufacturing companies is bringing your factory back to the good old U.S. of A, says a CNN report.
Mark Krwyko, the owner of Sleek Audio, decided to move his factory from Florida to Guangdong province in 2007. His experience, he said, was less than desirable.
“Even though there’s a tremendous cost savings when you go to China, in the end it really isn’t that much,” says Mark Krwyko, the owner of Sleek Audio, a company that manufactures headphones. “It’s the hidden costs — the delays, the shipping costs, you pick all that up on a learning curve.”
There were issues with product quality and communication, he found the travel too taxing as the cost of manufacturing kept rising, and he was almost put out of business when a shipment of 10,000 earphones were ruined. That foible cost him millions.
So Krwyko shopped around the U.S., and he found that the recession had lowered costs enough to make keeping his factory in the U.S. worth his while. He’s not the only one, says CNN.
China is a hassle and that they want to bring their operations closer to home, where the recession has lowered costs, created workers eager for jobs, and made it easier to justify U.S. manufacturing. Reports have emerged from California, Texas and all across the country as small businesses — and even large ones like GE (GE) and Caterpillar (CAT) — take advantage of local incentives and move back at least some of their manufacturing operations for products sold in the U.S. market.
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