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Home > Blog > So, you're going to begin Manufacturing in China...
SATURDAY, JANUARY 2, 2016

So, you're going to begin Manufacturing in China...



  

Before anybody wants to take a political shot at me on this one - yes, I agree with you, it would be fantastic if everything could be manufactured in the U.S.  But we don't live in a self sustaining bubble within the world.  It is a global economy.


Let's dig into this a bit more.  Unfortunately, for particular products, it is not economically feasible to produce in the States.  If attempted, the company will not be able to compete and will eventually cease to exist.  Why?, because most of the same people that bitch about products being made overseas are the same ones that complain when the cost of their jeans go up 5%.  In other words, they are quick to get on their soapbox but unwilling to back it up with their wallets.  


Back to our manufacturer - they are a startup and determined business model sustainability requires that all manufacturing is completed in China.  This is a bummer, because manufacturing job creation would be great.   But, all other created jobs will be at home.


Jump ahead 5 years, their U.S. payroll is over $750,000.  This includes Engineers, Warehouse Employees, Sales Reps and Office Staff.  Like you, all of these people pay their taxes, which supports, schools, roads, fire dept. etc.  Also, like you, they spend their money in their community - restaurants, coffee shops, dry cleaners etc.  Combined with your spending and the spending of others, this created wealth helps support or create additional jobs.
 


I got way off base (and preachy) on this - a direction not intended.  The only intention was to point out to manufacturers:

 

If you are manufacturing products in China, keep in mind before they get to your warehouse, they are likely leaving the Chinese Manufacturing operation by way of truck (collision and overturn exposure), then rail (derailment potential), truck again, then ship (exposure to pirates, sinking vessel etc.).   Your property policy will not cover this - you need a Marine Cargo Policy.  If you need more information shoot me an email dan@hebbeln-ins.com If I get a good vibe about you, I'll respond.

 

This is a crazy good post, (quite worthy of a LinkedIn Share - button is below) - I got way political!  I have no use for politics (they wear me out).  But, this post has proven a bit invigorating - not stale like all my other posts.  I'm going to move so far to the right, that I'll make Rush Limbaugh look like Nancy Pelosi.   Then I'll peddle all that crap, like key chains and pens with my name on it, to my unquestioning supporters and get crazy rich (own my own jet rich)!  Yes! 2016 is all planned out now.

 

 

Posted 10:14 AM

Tags: business owners insurance, general nonsense
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