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Tractor Talk Discussion Forum

Re: Is it just a matter of marketing?

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JD Seller

01-05-2013 16:32:40

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I live just 15 miles from where Ertl toys started. The real problem is the regulations requiring this and that to manufacture here in the US. The requirement you have to go through to cast anything today is terrible.

Have you ever heard of the Chinese OHSA???? There is not one. So where a US manufacture would have to have hundreds of thousands of dollars in air filters and personal protection equipment the China manufacture has ZERO cost. If some one gets sick or dies there is no law suets in China either.

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01-05-2013 17:46:06

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 Re: Is it just a matter of marketing? in reply to JD Seller, 01-05-2013 16:32:40  
A lot of companies blame regulations, but even China does have some standards. I used to visit a lot of foundries, as part of my job. Iron and steel casting was the nastiest, aluminum foundries were relatively clean. What really gets the foundries are labor and matieral. Aluminmum is a pretty common element, but it takes a lot of electricity to refine it. And countries like China subsidize basic industries, to the point that a US foundry can't buy the matieral for what the chinese company sells the finished product. US managers don't want to be honest about why they outsource production. It's all about the money, and screw the workers. Ertl moved out a long time ago. I've got a couple of their tractors, and some Spec cast also. Lots of detail, lots of hand work, if you can get it done for a buck a hour, you can sell a lot more, at a higher profit margin. The lure of easy money has a very strong appeal....

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01-05-2013 17:05:54

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 Re: Is it just a matter of marketing? in reply to JD Seller, 01-05-2013 16:32:40  
JD if someone gets sick or dies they also have 4 billion more to replace him!!!!

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01-05-2013 16:51:19

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 Re: Is it just a matter of marketing? in reply to JD Seller, 01-05-2013 16:32:40  
JDSeller- Do you think the regulations put in place by the Federal Government would prevent fires like a garment-factory where a fire killed more than 110 people Saturday on the outskirts of Dhaka, Bangladesh? Just because there were no fire escapes and the managers told the workers to get back to work because there was no fire. This seems to happen quite often in places where there is no "government regulations". Just like China...They have very few laws regulating hazardous waste disposal and that aids in producing a cheaper product. Heck, they even put melamine into baby formula thus killing many infants. What about the China provided drywall to the USA? That created lots of problems for homeowners in the USA.

I guess my bottom line is...There are just as many unscrupulous people in the USA as there are anywhere in the world, when it comes to making more money over someones families health or well-being.

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01-05-2013 17:04:10

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 Re: Is it just a matter of marketing? in reply to Greg1959, 01-05-2013 16:51:19  
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Greg I think what JD is trying to point out is that with the cost of labor, plus the cost of meeting OSHA and EPA regs it makes things unprofitable to make here unless the consumer is willing to pay a good deal more. That's the whole problem. WE have become addicted to cheap products! And when you can import coffee cups for 10 cents delived to the dock and it cost me 20 cents to get em out the factory door in NJ, well I just can't compete because the consumer is going to buy the cheaper product at a box store.


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01-05-2013 17:17:33

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 Re: Is it just a matter of marketing? in reply to oldtanker, 01-05-2013 17:04:10  
Oldtanker- How about this... what do you say about stiff Tariffs on imports? I understand everything in the USA will increase. At least, we are not funneling more of our dollars to a foreign country. :)

China has undervalued their currency on purpose.

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01-05-2013 17:01:08

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 Re: Is it just a matter of marketing? in reply to Greg1959, 01-05-2013 16:51:19  
now I'm ticked off again......reminding me about that stinking drywall.
thanks for the reminder!!!!

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