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To: Leaning Right

Well “good enough” is a market-based criteria. If his business was challenged by an offshore producer with a cost advantage, he had several options to choose from. One would have been to make locks for e.g. Mercedes Benz and other premium car makers who do not buy “good enough” but pay premium prices for superior components. Or he could have used his lock-making expertise to make something else, like high security locks that sell for premium prices and thus would not be subject to the same pressures.

Every business in every industry faces similar pressures every day. Most realize that being the cheapest producer of “good enough” products is a race to the bottom where profitability is minimal and customer loyalty is nearly non-existent - they will jump ship in a minute to save a few pennies. The jobs that were lost are not are result of Chinese manufacturers becoming the producers of “good enough” products, but of this business owner failing to pursue a business strategy which would have allowed them to be retained. I can give countless examples of US manufacturers who did that successfully and are thriving.


45 posted on 06/16/2021 12:43:27 PM PDT by bigbob
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To: bigbob
China has another huge advantage beyond cheap labor and little regulation.

They also have a vast manufacturing ecosystem that no other country has.

I suggest Americans look at Alibaba sometime. It is presented as the Chinese equivalent of Amazon, but almost everything they sell is manufacturing components.

Looking for a small electric motor?

Browse Alibaba and you have a huge selection all from manufacturers competing to give you low prices and fast delivery, and they can deliver at scale.
84 posted on 06/16/2021 2:31:48 PM PDT by Renfrew
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