Sunday, January 02, 2011

Maybe the First; Certainly Not the Last: Master Lock

A 'good news' story describes the return of Master Lock production to Milwaukee.

PRChina's problems: labor unrest, re-valued currency, and quality deficiencies, made the decision much easier for Master Lock's management.

In addition, the Company has invested a hatload of moola into automation, reducing its unit-labor costs AND increasing quality.

This re-inforces what I've heard around here for the last few years. You can buy it cheaper in PRChina--but you will pay for quality problems--and delivery problems.

Heh.

5 comments:

Deekaman said...

I hear others are having similar problems. One in particular I can't name here I would love to see back in the states.

neomom said...

Yep - saw that first hand at the evil multinational. But I will say it again, the US can compete even with higher wages when you toss in efficiency, lower inventory, lower logistics, and higher quality.

BUT...

Overhead caused by higher regulatory costs can turn that equation upside down very quickly.

John Foust said...

Union labor here?

capper said...

Union labor and tax hell and regulation hell and all sorts of other hells. How'd that happen?

Thanks Gov. Doyle!

Deekaman said...

Maybe it's Union, maybe it's not. I work in a UAW shop and have respect for their talent and ability. They actually produce something, unlike our public sector union friends who suck at the tit and produce zero.

Interesting that they announced the return AFTER the Democrats were unceremoniously thrown out.

Just sayin'.