Current Trade Realities

Doing business in Asia is becoming imperative for small to mid-size companies to survive. The larger corporations have been doing business in Asia for years. They have been shifting more and more production to the Far East every year due to the financial advantages it provides. Just visit your local Wal-Mart, K-Mart or Target Store and see the thousands of quality items being produced offshore.

For years, manufacturers in the United States have been complaining that they can’t compete with the low prices from Asia, even though, they themselves have purchased numerous items for their homes and businesses that were produced offshore. Generally, manufacturers who are being outbid by their local competition, ask themselves how their competitors are accomplishing their low prices? The manufacturer checks its own production costs, raw material costs, operational costs, and then gets lean and mean in order to compete. The Asian market is no different than any other low priced competitor. Instead of attending industry and association meetings to use as a platform to complain about offshore production, time may be better utilized by making changes in the manufacturing process and/or thinking about ways to utilize offshore sources, thus being more competitive.

Jobs will be lost but…
It is estimated that 900,000 U.S. jobs will be lost to Asian imports by the year 2010. The vast majority of these positions will be in manufacturing, which is inciting cries of protest, with pleas of more government controls. Small to mid-size companies without the scale to “go global” will be left behind unless they act now! Asian imports are soaring and their quality of production is also fast improving. China’s rise as a manufacturing base is going to have the same impact on the world that the industrial revolution had for the United States. Europe and the United States are continuing to increase their imports. The Chinese middle class is growing and the positive from this is an increase in wealth for the Chinese, who will in turn be demanding an increase in American products. The question is what is to be done about this trend. Companies can both complain to the government and hope for it to step in, or take matters in their own hands and take advantage of this trend.

How can U.S. Manufacturers Compete?
Take a pro-active stance! In more cases than not, each manufacturer has a part, component or small margin item that can be produced off-shore, that will allow completion of production with a lower cost, making it more competitive. Well-managed tooling shops need to keep their options open by offering customers offshore tooling. This may have a longer lead-time, but the price advantages of doing offshore tooling would be astounding. Once a piece of tooling is finished, the domestic tooling company could inspect the finished product and make any minimal adjustments that may be required. This in turn gives the customer a solid sense of quality. For projects that need a quick turnaround or for those customers not confident in foreign tooling, producing the tooling domestically would be the best option. This combination of domestic and offshore services would enhance their profit margins and expand their business, instead of being outbid time and time again by companies that have this versatility.

Rockford Tool has the Answer
Rockford Tool Company can help companies better compete in this global economy. Rockford Tool Company has the highest quality factories controlled by the best management in China. Combine this with our top-notch quality control team and you have a winning combination. We can offer “quality thrift” from Asia for plastic or metal tooling. We also have strong experience in die-casting, hardened glass, heat resistant glass (Borosilicate glass), raw castings, finished castings, stampings, plus parts and components of all kinds. Whatever your Asian manufacturing needs may be, Rockford Tool Company is the connection you need.

Be part of the future and give us a call at (262) 567-0411, or send us an e-mail at sales@rockfordtool.com. We will answer any questions or concerns you may have. We look forward to hearing from you.