Wednesday, July 18, 2012
In-sourcing is a bunch of bullshit.
I have been reading some of the political blogs and the new buzz work is "in-sourcing." That is taking manufacturing away from China and bringing it back to the USA. What a big bunch of bullshit.
I actually manufacturer clothes. In a small way but getting bigger every day. One of the main complaints I get from customers or actual people who complain but don't buy is that our stuff is expensive. Well it is all made in the USA and that adds a significant cost to it. We maintain strict quality control and are on top of our manufacturers. It is a non stop job.
Yesterday I went to a trade show sponsored at FIT (Fashion Institute of Technology) where a bunch of factories and fabric makers and trim makers and other necessary parts of the manufacturing process came to get new customers. It was kind of a joke.
There were only two real factories there. One was a Chinese guy in Williamsburg whose numbers were the same as what I am paying now. Another is a big concern in Sunset Park which we might change our production to after this next run of dresses. These guys are Chinese too but they actually speak English and have a bunch of big clients. We might go with them because if we are going to pay this premium we might as well get it right the first time. Finding someone to actually make the clothes is almost impossible. A lot of our production is in LA but we are having problems because it is so far away. So we are thinking of doing a lot more here in New York. We need a factory that is hungry and will give us a break so we can give them more work. It is almost impossible without the hard work of beating the bushes to find these obscure joints that we can work a deal with. It is almost a full time job in itself.
Luckily it is not us that is doing this. Someone else did it. Not us. Or something.
People in politics have no idea how the real world works.
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11 comments:
Trooper, My friend who owns Ringside Products had the same problems and the same laments as you. I doubt that's any comfort.
What about The Triangle Factory?
A lot of our production is in LA but we are having problems because it is so far away. So we are thinking of doing a lot more here in New York.
You sound like the producers of Mad Men must sound like these days. I keep waiting for them to "do a Johnny" and move out here but they have their hearts set on Manhattan.
FIT sounds familiar. My wife's best friend in high school (and still is) has a technical degree accreditated by them out in LA somewhere. She no longer works in the industry, but when she last did she managed production for a company that manufactured women's swimwear. Talk about your mark-up.
So I take it that if and when you get really big you'll have to outsource the work to the orient because of the combination of lower labor costs and larger productive capacity than exists in the states. Since I know nothing from nothing in this area that's a question not a statement.
What about the Ralph Lauren US Olympic crap with the berets?
Pathetic.
No ricpic I will not outsource. If I can get my numbers up I can get a much lower cost here in the USA. But I have to work to find it because they won't just knock on my door.
Hey, didn't Tim post some longish comments here the other day that were on outsourcing? What happened to them?
I recognize some government regulations have a purpose (the Triangle Shirt fire comes to mind) but we have managed to strangle the golden goose with all the rules, taxes and BS government piles on small businesses.
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