Time To Manufacture Locally

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I have been saying this for years that he time has come to manufacture locally not relying on other countries to make everything for you. Back in the late 1980's and early 90's it may have made financial sense, but not now 30 or 40 years later. The whole narrative that China is cheap is false and the only reason this still happens is they have no competitors manufacturing locally.

I have done some costings on various items because this idea of buying from China ,shipping it across the world, paying import duties/tariffs and not forgetting local transport and warehousing how can it be cheaper? Shipping costs have increased so much since 1990 this factor alone has made it viable t manufacture locally. Chinese labor costs are no longer dirt cheap and with all their competitors shut down no one has a clue what thigs really costs anymore.

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It was not long ago a container from China with local delivery and agents fees would be in the region of $1500 and today tat price s just on 4 x higher being round $6000. Forget the actual cost of the item to manufacture has also risen steeply, but that extra $4500 now needs to be factored into the imported items real cost.

The item I was researching I will not reveal but can tell you this product is not manufactured locally which I find puzzling and is 100% imported from China. There is a 20% import duty on this item which needs to be added to the overall manufacturing costs and ultimately when all these costs are added together the so called "cheap" item is no longer cheap.

Buyers just go along with this China is cheap narrative as they have nothing to compare against price wise locally. They are comparing other fully imported items which in most cases has a Chinese agent adding another percentage fee to that item.

If you know your prices you can quite literally cherry pick items that are ripe for local manufacturing. The item I researched came in at under 30% of the landed price so there is a definite business opportunity for someone switched on. The only reason I am not making it is I need capital to invest in the machinery to make this item. Ironically this will most probably be Chinese machinery required to take business away from China.

When one looks at the entire Chinese manufacturing concept their business models have vastly changed from the 1990's and is not necessarily about price or being the cheapest they can as they don't need to compete with international manufacturers as there are none or very very few. I am sure if I checked on the same product for Europe I would find this is also 100% imported. Manufacturers gave up 30 years ago leady and no one has started back up because everyone just relies on another country for almost everything today.

I am really hoping these tariffs wake people up on what a prime opportunity this really is and at some point countries take control of doing their own manufacturing as China cannot compete anymore with a locally made product.

Posted Using INLEO