Chinese goods explained!!
So many customers come to our place of business, wishing to redo baths, kitchens, or buy new doors and hardware. For once, they wish to know where the materials are made. Europe, India, China, or perhaps America! For the last 30 years we have been selling materials made around the world, and I can say with authority, that in the past, our companies purchases were at least in balance as to origin of manufacture. I would say it was always a 50/50 deal. Today, that balance is shifting, and that is sad indeed. I don’t like the change for many reasons, and I am willing to share my thoughts on this subject.
Wall Street, obviously likes profits and volatility, as that makes for great commissions. Generating high profit today is not an easy task for most manufacturers. Many owners or ceos find that making goods overseas is the only way to stay afloat. If you examine this, you know that as we decrease our labor costs, we increase our profits. Since China and India have such low labor costs it stands to reason that the goodies we import will be far cheaper then anything we can make for ourselves. There is certainly a catch with this line of thinking. In particular, the Chinese artificially keep the value of their currency (the Yuan) under its true value…..to the tune of about 35%. One top of that the good old U S of A offers China and unfairly low import tax rate. The rate at which factories are closing in America to buy from China, India, or Mexico for the above reasons is alarming. It doesn’ take a genius to now understand our unemployment rate does it? You might say that China buys our debt and that is why we offer such lenient terms to them, but I submit that they are so in deep with us, that changing our tax terms with China and stressing to the rest of the world the unfairness of their currency system will cause a change in thinking. China will have to change, because the inevitable will occur when America wakes up and begins to be competitive once again, and produces its own materials. Honda at least builds many of their car models here in America, which at least employees our citizens. If you go to Home Depot, or Walmart, the percentage of goods from Asia is alarming. The same can be said for clothing for most of our big box stores. Sure Wall Street loves the profit…..but America is suffering. The rich are getting richer, the poor stay poor, and the middle class is slowing disappearing. This is cause for alarm. History tells us that when the middle classes disappear, so goes the country. This can be fixed, but not by a dysfunctional congress. Balance is the key word, and I submit that Wall Street and the rest of greedy America is truly out of tune. Wake up! www.hardware-designs.com email@example.com