OK, here’s how it works in real industry:
Let’s take steel quality. US steel is tested for conformance to ASTM standards - by the steel companies. US engineers have, for quite some time, been able to assume that steel of “specification XYZ” meets the ASTM standards for that material when it is sourced from US steel companies that adhere to ASTM standards and testing. The steel company is doing the testing - not the customer. The customer is making the selection of steel, knowing that it meets the standards for the type of steel being marketed.
Not so with Chinese steel. The Chinese steel companies take your position - it is the customer’s responsibility to perform QC.
And at that point, I call bullcrap. Most customers are not in a position to set up a materials testing lab, nor are they going to be in a position for time or money to test every lot of steel coming out of a Chinese plant.
For myself, I refuse to buy or use Chinese steel in anything I make or use where I need it to last or my ass is on the line. I’ve seen Chinese steel fail again and again in farm and construction applications, and the more specialized the steel (eg, bearing or bolt steel), the greater the tendency to failure.
When I call up a US outfit like, oh, Lawson or similar vendor for bolts, I don’t need to send their grade-8 bolts off to a lab with a question “Is this really grade 8 bolt steel?”
If you’re using grade 8’s from China, you’d better test every lot you buy.
That’s a bit different than what we’ve been talking about. I’ve dealt with Chinese suppliers and it’s true that they certainly have some quality issues. On the other hand, most of the companies I’ve worked for have plants in China and their quality is at least on par with ours. If the Chinese-owned companies get their quality ship in order, which is almost inevitable, we’re in big trouble.
The last red iron I bought was from Mexico. What is amazing to me is products can be shipped from across the globe and still be cheaper. In America driving across town to save 10 cent a gallon never works out. But you have some people who will do it.
Correct. That's some of the price you're saving. Less QC. Unless you demand lab tests of each batch of steel, then you get it - and you pay for it.
How is that different than two suppliers in the US, one with gas-fired furnaces (which are notorious for hot-spots) and the other electric?
I use a LOT of low carbon (1008 and 1010 grade) steel in my work; you need low carbon steel to channel magnetic flux (just 1% carbon will render steel essentially non-magnetic). As I design loudspeaker drivers, I use a LOT of steel.
I've had good and bad results with US steel makers (when I built my own speakers right in Lynnwood, WA) and I've had good and bad results with Chinese suppliers.
Now, I make sure that - regardless of where it comes from - 0.03% of the product is taken at random and tested. My own staff shows up at the factory, pulls samples they want (chosen from random pallets and random boxes), and then tested by my own staff.
Yes, it's extra cost to do this - typically 1-1.5% more cost, but I have good assurance that what I designed is what I am getting.
The people running the tests are Chinese; but they're paid by me, not the factory. And they know if they screw up I will not hesitate to fire them immediately. The Chinese are not stupid - they will answer to who pays the bills!
But in general, if you skimp on costs, you skimp on something. Labor's not the issue; it's mainly business overhead that is the big culprit. So if you are getting a bargain basement price, then you better find out what's wrong.
If you were using the grade 8 bolts in a Cat motor made for the domestic Chinese markets, it doesn't make sense to buy them in the US and ship them to China, so you spend a little more for a reliable source that you can use over here, and then you do as Ronald Reagan cautioned:
"Trust, but verify"