Quote:
Originally Posted by Sigequinox
Probably. They could just move manufacturing to a state that is more affordable than CT, but nothing compares to the low costs of China. If they already have a manufacturing and distribution pipeline established through other subsidiaries (for example Fender also owns Squire which is prob made overseas) then it's even more convenient.
This is not just a sad story for CT but a paradigm shift for the US. really sucks.
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It's not always a company's choice, though. My wife used to work for a mid-sized manufacturing company based in west central Mass. She was in the front office doing purchasing/procurement work, but they employed several hundred people doing actual manufacturing of low-tech items (primarily, women's clothing accessories) in Massachusetts.
The powers-that-be at the company looked into manufacturing in China, and other low-cost countries, but they were pretty efficient at their company and had some automation in place, and the prices they got from Chinese factories were basically the same as the cost of producing them in the US, and more expensive when you took shipping them from China to the US into account.
However, Wal-Mart was by far the company's biggest client, accounting for about 1/3 of their sales. Around 10 years ago, Wal-Mart decreed that anybody supplying them with said women's clothing accessories must ship them through their facility in Guangzhou (Canton), China.
Unfortunately, it was not realistic for the company to ship their items from Massachusetts to China to be shipped back to the United States, so they were forced to comply with Wal-Mart's directive or else go out of business completely. However, they still had to close the US factory in Massachusetts and lay off 400 or 500 people that worked in the factory.
Of course, a few years after they shut down the US factory, they closed up shop completely in Mass and moved the remaining front office people to Tennessee, where they still are today. (My wife had left the company by that time.)