Trickle of US Businesses Returning Home from China

Posted on October 28, 2011


For a multitude of reasons, some  manufacture outsourced to China is returning to the US. It is not enough to end unemployment problems here but it does mean there are a few more choices in the market place and a boost to our flattened national ego.

In a furniture store where I worked after retirement, after spending  hours – even days helping a customer choose fabric for upholstered chairs and coordinating carpet to go with it, we would receive word that the fabric had been discontinued.  More often than not, “discontinued” meant that it was so late arriving from the manufacturer in China that the company here was treating it as such.  This was the case across the board from mid-range furniture manufacturers to upscale products.  In short, turn around time was miserable in the fabric department.  And there was no relief from it since most fabric is now made in China.

For reasons of quality and ease of correcting problems, most of the frames for upholstered products are still made here.  I cannot tell you how many

Quality of product was not there no matter how controlled the company there was by the parent company here.

Chinese practices in law and in accounting.

Another reason for return is theft of intellectual property or manufacture plans.  Further, when a company moves to China, this is the recommendation prior to setting up shop to avoid theft of brand identity:

If you are doing business in or with China you should give serious thought to registering your trademarks in China. In particular, you should consider a China trademark registration for your trade-name, your logo and your service marks. Brand identity is critical for success in China (as it is just about everywhere) and if you are going to protect your trademarks in China, you must register them. This is especially true in China where if you do not register your trademarks, someone is almost certain to try to appropriate them.  If you have not taken the necessary steps to protect your brand, this theft will succeed. [chinalawblog]

 

Overseas workers are getting more expensive.

Shipping costs keep increasing

Global supply chains have shown weak links. [Many of the reasons for factories relocating here provided here]

Posted in: CHINA, MANUFACTURE