KLIPSCH being produced in CHINA?

[prodj101]

Why does it matter if it's made in China as long as quality remains consistant? I haven't see anyone complaining about inferior products...In fact many of you continue to buy Klipsch.

[WMcD]

Scott's story rang a distant memory bell. About 25 years ago I heard the same thing about Sears and small manufacturer of clocks.

The manufacturer was doing okay with ordinary retailers but then was thrilled when Sears agreed to buy from them. Production ramped up and life was good.

After the first year, Sears demanded a price cut. Not too bad. Then after the second, demanded another. Pretty soon it seemed like the manufacturer was a slave to Sears and all margins were cut to almost nothing.

This may have been just a complaint by the manufacturer and maybe he was still making a good buck, just not as much as dreams of avarice projected.

OTOH, I'm sure this sort of thing has been going on for centuries. It is all a matter of who is the dog, who is the tail, and which can wag the other.

= = = =

I do wonder whether America has been too quick to criticize smaller economies which are protectionist of their industries. The folks there saw the danger. Now America is singing the same song.

Gil

[dodger]

Part of the argument bases who cares where it is made as long as the quality is high.

Eastman Kodak moved its Film Operation to China. 2000 Americans laid off.

In the late 70s and 80s, Eastman Kodak employed 40,00 + in Rochester. Now with Outsourcing, digital, sales of operations making a profit, we have about 20,000 people Employed here.

For film, the argument was that it is too expensive to produce here in the U.S.. Tell that to the employees at the United States Fuji plant. Both in U.S., both non-union.

At one point about 68 % of PDs used Motorola Radios. Enter George Fisher. Health Benefits cut, sections "outsourced," decision to concentrate on Cell phones. Quality goes down, Uniden radios gain, Fujitsu radio sales climb.

PDs still need a lot of radios.

No matter, lay off employees, cut retiree benefits. Exit Georgie. Quality re-appears, AMERICAN workers added. Almost back to 65 % of market.

Enter Mr. Fisher to Kodak. Rochester was used as a model for health care. George negotiates contract with Blue Cross/Blue Shield competitor. Poorer coverage. Decision to eliminate Copier lines, some medical research, outsource for basic product. About 20,000 AMERICANS out of work. Film made in China, Cameras made in China, Mexico. Health care poll down the drain. About 4 - 5 years ago Georgie leaves.

New Health Care Company rates now higher than Blue Cross/Blue Shield, problems with digital, Copier business sold off, what was to be a 19 building plant closed and sold. They are not done yet.

Shure Microphones, assembled in Mexico. Problems with parts, getting repair parts.

And as mentioned earlier, profits up, prices the same.

OPEC raises prices, within 2 days prices are higher at pumps. OPEC lowers price, may see a drop in price a couple weeks later if that soon. In NorthEast, choices will be pay utilites and prescriptions or eat dog food. Uh what happened to chepa oil from Alaskan Pipeline - that goes to Japan.

I care where it's made if Americans lose jobs because of where something is made. No American made TVs, RCA (Thompson Electronics) could not provide a manual because they were not sure whether the set was made in Korea, China, Mexico or Japan.

Right now wood prices have skyrocketed because of disasters in Florida, Midwest. That will eventually have an affect on Klipsch, any other American Comapny that uses real wood.

Every job "outsourced" to another Country means an American job is lost. People say that hiring is up. In the Food and Service Industries, yes. In the end people may not be able to afford what they are cooking or providing Service to.

Last example - Canadian PDs have some of the nicest shoulder patches/Flashes..If the Department receives any Federal money, the uniforms and Patches have to be made in Canada. Years ago when Rochester PD decided on baseball type caps for Civilians or off duty, plus on jackets, it took 3 batches of made in Taiwan patches to have everything legible

Between "outsourcing" to others Countries and cuts in Education, or decisions that the tests are too hard, we are digging our own graves. The example for that is one of our suburbs decided to buy American. Lawn Tractors and some larger machines wer put out for bid. 2 Companies came up, one with a Japanese name (Kumatsu?) and John Deere. Being all American they chose John Deere. Turns out the John Deer's were made in Japan, the Kumatsu? were made in the U.S..

We have to send our jobs out because labor, some parts are too expensive. Japanese Companies build here and make a profit.

How do you say Klipsh in Mexican?

dodger

[D-MAN]

Of course. No suprise there.

DM

[sunnysal]

you don´t, you can say "Klipsch" in *Spanish* however.

Our greatest risk is that we will never understand world economic dynamics, keep fighting for higher wages and trying to keep all the production in the USA and in a few years you can all be working for Asian-owned companies and laid off by the tens of thousands. It matters where the capital ends up!

Our companies need to be taking full advantage of labor in Asia, Latin America, etc. or else our companies will slowly but surely lose the global contest...I say own the companies, stay at the top of the food chain...

IBM just lost its entire PC buisness to an Asian owned company...get smart or get out of the way.

tony

[minn_male42]

it is not all bad news.....

there are more than a few companies "insourcing".... like toyota and nissan buiding car plants in the u.s.

here's a link with more info....

http://www.ofii.org/insourcing/