America’s economic engine is compromised. Forces at work over the last 30 years have sapped our nation’s vitality. How did it happen?

Next up was a review of our U.S. manufacturing and our off-shore sources. We were getting our electronic scales and heavy duty mechanical scales from two producers in Taiwan.

Landed costs for these Asian products enabled us to sell at competitive prices and the quality was generally acceptable. Life was good.

Within the year, however, a major player in the home and medical scale businesses decided to enter our markets. Their sources were, for the most part, China-based.

Although the quality of these new, competitive products was not great, the company’s marketing push was enough to cause our customers to look with a more critical eye at our products. We were able to hold on to most of our business, however, one major customer threw out our electronic line in favor of lower prices and the promise of better quality.

[Post 5 of 21]

America’s economic engine is compromised. Forces at work over the last 30 years have sapped our nation’s vitality. How did it happen?

In 1989 we acquired an established office and commercial kitchen scale business. At the time of the acquisition the company held a dominant position in the office supply market. Its significant position in the commercial kitchen category had begun to slip. We merged our Weight Watchers scale business into that company.

As part of the effort to stabilize and grow our commercial kitchen business, we determined to introduce a line of bi-metallic kitchen thermometers. After researching the opportunity and laying out our product line, we reached out to a Korean manufacturer of high quality instruments.

With everything set, the last step was to go to Seoul, South Korea to finalize prices and visit the factory. I wanted to learn how the thermometers were made, in order to develop a meaningful quality assurance program for product arriving in the United States.

In Seoul, after a day of meetings, with cost and logistical issues put to bed, I mentioned to my hosts that I was looking forward to getting some sleep and starting out the next morning to visit the factory.

“Oh, no,” they said, “we closed that factory year ago. Labor in Korea too expensive. Our factory now in Qing Tao, China.”

[Post 4 of 21]