Skip to comments.Why small manufacturers are returning to ‘Made in Canada’
Posted on 07/15/2013 5:13:17 AM PDT by Squawk 8888
The Made-in-Canada business model once seemed viable for only niche, high-end brands, such as Canada Goose, that could afford higher manufacturing labour costs. But a change may be afoot.
The movement of transferring domestic production overseas was the retailers vision to save consumers money and still is but I believe that its changing after seeing the effect it has on our economy, says Moji Korhani, co-owner of Korhani, whose rugs and home décor products are sold by such retailers as Walmart, Lowes, Canadian Tire and Home Depot.
So much was invested overseas and now the cost of living there is rising, duties are being applied, factories are collapsing and killing workers, such as what happened in Bangladesh. I think many are turning around and saying, what did we do? Mr. Korhani says.
Corporate social responsibility, however, is not the only issues causing manufacturers to take a better look at the offshoring model. The logistics of supply chain management can be complex, requiring long lead times between design and delivery and adding to cash flow pressures as companies pay for the products and then wait months before they can be sold or delivered to their customers.
There are also issues with supply chain disruptions. A couple of years ago there was a big strike in the Port of Los Angeles that lasted eight weeks. To reduce the impact of such a disruption, you need to create a buffer. One way to do that is to manufacture locally, says Murat Kristal, an associate professor of operations management at Schulich School of Business.
Fifteen years ago, the choice was simple for Canadian manufacturers. You did the design here and outsourced your manufacturing in Asia. Now the choice is not so clear. Manufacturing in Canada has become a serious contender, he says.
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How about Made in America.
Just saying. We import everything.
Bring manufacturing back home.
My Broil King is a fine piece of equipment for a decent price.Made in Canada and I’m happy.
I’m naturally all for “Made in USA.” But there are some very good products made in Canada, too; such as, Prevost coaches, Western Star truck tractors, Bombardier commuter jets, etc.
We used to have a “Northern Reflections” clothing store in our local mall. Loved the clothes. I’m pretty sure they were made in Canada. They closed all the US Stores. Too bad.
Companies with any sense see the potential for hundreds of Hugo Chavezes to sprout-up around the world in these places and begin confiscating their investments in plants and infrastructure.
I agree, both Canada and the United States need to bring back the manufacturing base.