[Jewelry making - Article 00081] - Re: [Orchid] Handmade vs mass-produced

[Dale Burnett]

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>             Hence the question is How far can we blame the countries,
>     thus, for providing us with unfair"competetion"? ...... If
>     companies such as Wal Mart does not hesitate in hoisting products
>     from Timbuktu in my face and not the locally made goods then how do
>     I not get my product overseas to face competition from companies
>     like Wal Mart. 

    Hi Anil, If anyone is to blame for the situation in the U.S., I blame
    the U.S. government.  They must enact trade policies which help to
    compensate for drastic differences in the cost of labor (i.e.,
    standard of living) in different parts of the world.  These should
    apply to both foreign based companies that import products into the
    U.S. and to U.S. based companies that set up manufacturing
    operations in foreign countries (they are now actually foreign
    companies) for the purpose of importing goods into the U.S.  There
    needs to be a dis-incentive for U.S. companies to become foreign
    companies unless they plan to sell those goods in the country in
    which they operate.  If you want to call this protectionism, then so
    be it.  I see nothing wrong with protecting the jobs and hence the
    economic welfare of ones citizens.  I do not mean retaliatory type
    trade policies.  I think this is stupid and counterproductive.  I
    mean reasoned and rational trade policies (if there is such a thing)
    intended only to try and equalize for the gross differences in the
    economic climates between vastly different countries.  As these
    differences become lessened, then the trade policies should be
    adjusted to reflect this.  Pressure from the U.S. government on
    these foreign governments to take measures to elevate the standard
    of living of their workers (minimum wage laws?) in exchange for more
    favorable trade policies may also help. 

    Yes, Wal-Mart buys the vast majority of its goods from China.  But
    you cannot compete with Wal-Mart no matter where they buy their
    goods.  They buy in such large quantities and operate on a 3-5%
    margin that it really wouldn't matter where they buy their goods. 
    Can you operate on a 3-5% margin? 

    This situation is not limited to the jewelry industry by any means. 
    Indeed it is rampant.  I know a man who owns a $5 million/ year
    manufacturing operation (not jewelry related), and has for 20 years,
    who is having trouble competing with overseas operators.  I hope you
    can see that if we all decide the answer is to move overseas that we
    are in serious trouble.  Those who are left will have to work at
    Wal-Mart and jewelry will not have a place in their budget. 

    I do not blame the consumer for this situation as much as I blame
    the government.  We are all doing the best we can to survive and
    will choose from the available options.  When confronted with
    comparable options, I will choose American made products.  But as I
    have noted before, this is increasingly difficult to do.  As an
    example, I do not believe that it is possible any longer to buy a
    television that is made in the U.S.  I believe the market for local
    craft and handmade jewelry has already been impacted by such outlets
    as cable TV and the Internet.  I know a woman who will only buy her
    jewelry via cable TV.  She thinks it is finely handcrafted and of
    the highest quality (OK so she's not a jewelry connoisseur) and does
    not understand why it costs so much less. 

    Since I do not have the desire nor the ability to set up my own
    overseas manufacturing operation, the only recourse I see is to
    communicate with my government representatives.  For anyone who is
    interested, I have prepared a two page dissertation on this topic to
    send to my congressional representatives.  If you would like a copy,
    please email me off list and I will send you a copy. 

Thanks for listening,
Dale


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