Posted by jerry wigutow on May 7th, 2020
PRODUCTION BACK IN THE USA?
In 1934 Winston Churchill said the following:
“We cannot afford to confide the safety of our country to the passions or the panic of any foreign nation which may be facing some desperate crisis. We must be free. We must preserve our full latitude and discretion of choice.”
In view of the current situation that our country is facing what Winston Churchill said in 1934 applies to today.
We have allowed so many companies to move their product to countries in the third world with most of that production going to China that we have seriously hurt ourselves.
The coronavirus has exposed our weaknesses.
So many companies for years have spoken of helping the 3rd world countries by employing their factories to make products for them at very low prices compared to the pay scale in the USA. Historically the quality of the work was as poor as the wages paid to the workers, but the US companies buying their product from these factories were living with the poor quality which American consumers accepted because the price for these products was so low.
As time went by these factories with the help of American’s visiting these factories taught them to make the products correctly. Also, as time went by these companies put more and more orders with these factories and more and more companies from the USA engaged these factories. These Asian factories grew and grew, because they were working for more and more American companies coming to them.
I have extensive knowledge of this happening in the textile or garment industry, it probably has happened in other industries as well.
One perfect example is Columbia Sportswear. I do not think they own a sewing machine in the USA, and if they do it is used possibly to make sample garments. They built it and has been reportedly a 2-billion-dollar business. Their customer base has been companies that retail the garments they make. They do have some branded merchandise as well.
What has happened as a result of the pandemic exposed the results of decision by so many companies to go to Asia may cause their demise.
Not only have the factories they employed shut down but so many of their retail customers have as well. Lord and Taylor is liquidating, Nordstrom’s is closing I believe 16 stores to name two that I read about Wednesday. I have been reading about retail companies either down-sizing or closing altogether for quite some time prior to the pandemic. The distribution network is drying up. This situation is having an effect on every brand name sporting good company in the country.
The retailers who are beginning to open have significant inventories so they will not be interested in buying new inventory any time soon. What will companies like Columbia do? Start their own online web site? Probably but will that bring in the revenues that will make up for what they would have had if the pandemic never existed, I think not!
Now if these companies maintained their production in the USA and made the quality products that the American work force is capable of and sold their products based upon the quality of what they were making they would better be able to deal with the pandemic situation.
I will digress for a moment and mention Wiggy’s. At Wiggy’s we produce the best products of their type and they may very well be more expensive than the rest of the market because as I have noted my philosophy is to make the best regardless of cost. A perfect example is the virus face mask. It sell for $17.50 which may make it the most expensive on the market but in my opinion the best because it does not let anything in, and it is washable.
All of these companies have become multinational and publicly traded. As such the mangers are more concerned about the stock prices so in my opinion there are shenanigans that take place with respect to the volume they do. For the past 4 or 5 years in the USA many retail companies have closed primarily due to Amazon it is reported and probably true. These multinationals to the best of my knowledge initially sold Amazon and then pulled out. Amazon ultimately started buying from the same contractors in Asia I suspect as these other companies.
So, in my opinion the sales of the multinationals had to decrease but their stock value escalated, how could that be? I’ll leave the answer to you.
Since these multinationals do not make a garment in the USA will they bite the bullet and set up factories here? good question, because they know the cost would be significant but more importantly the question becomes do these multinationals have the experienced factory management to over see and manage these factories once built. I do not believe so, so, there will not be any new factories built.
I would not be surprised to see many of these companies just liquidate their holding, inventory, and those who have made and kept a great deal of their earning retire. Why do I say retire, because they are almost as old as I am, and they haven’t any desire to start over and besides they have no knowledge of running a sewing plant anyway!
You might say the chickens have come home to roost for so many of the American companies that I believe have been “greedy” and not shown respect for the people who have purchased the products they have made for them. The one graphic example is the introduction of goretex 50 years ago that never worked but through advertising and deal making the gore company became a household word. Every boot company in the country was sold a bill of goods that their customers who had for generations experienced wet and therefore cold feet were told that because the goretex could breathe sweat would leave the boot and because the goretex made the boot waterproof, outside water wouldn’t get in. The reality IS SWEAT, DOES NOT GET OUT OF THE BOOT SO FEET GOT COLD ANYWAY. The fact that water does not get in is irrelevant. The same holds true for all of the rainwear that is sold, IT TOO DOES NOT WORK.
I believe without question the introduction of goretex is the BIGGEST LIE EVER PERPETRATED ON THE TEXTILE INDUSTY EVER. That said the coronavirus has shut it down to a very great extent because the greatest volume of goretex products is made in Asia, also, the retailers who have been ripping off the general public with non-performing products aren’t selling them at the moment, hopefully never again.
I will not go into it but the other product that is a bogus product is the many versions of the base layers that are equally disastrous. The fabrics used do not allow sweat out and keep heat in. so the wearer gets wet and freezes.
Things have slowed down so maybe people will take the time to question and learn about what they are or will be spending their money for.
I and Kok are very grateful for all of the people who have been supporting us with your order since this unfortunate situation has taken place and like you we too hope to see an end to it.