The Great Debate
- Published: July 31, 2004, By Yolanda Simonsis, Associate Publisher/Editor
The Wal-Mart subject of this past July and May editorials has been evocative in stirring responses and dialogue among readers and myself. I love this kind of exchange, and whatever your opinion, I hope you've enjoyed the discussion as well. The subject, as one reader pointed out, however, is a complicated one, and it can spawn a diversity of other debates.
One such debate is “Made in USA.” There are arguable points of view that are neither all wrong nor all right. On the one hand, proponents of a made-in-USA stance decidedly favor buying practically all American-made products, regardless of price or quality. On the other hand, the opposition feels an open and free global market stimulates innovation, price competitiveness, and quality improvements.
Supporters of the former position will be happy to know there's now, according to a July 4 press release, a new Web site (madeinusa.com) dedicated to “Patriotic Spending Made Easy,” which lists 400,000 US manufacturers “providing people around the world with a simple, convenient way to locate American manufacturers and their American-made products.” It explains: “Government buyers use madeinusa.com to spend American tax dollars on American products. Corporate buyers can increase the percentage of corporate dollars spent on American-made products in their retail, service and/or manufacturing operations.” [Obviously Wal-Mart won't be among these.]
The press release was accompanied by a pressure-sensitive label sporting a circular graphic image with two chasing arrows — one of a US greenback following a stylized image of Old Glory in red and blue. Manufacturers can download and add the recycling dollar's symbol, says the release, to their marketing, packaging, and even directly on their products.
When there's concern over loss of jobs, as PFFC readers have cited, a protectionist reaction is not surprising. But is it healthy in the end for either corporations or, ultimately, Americans at large?
Are there other proactive practices, such as supply chain management or lean manufacturing, that would have a comparable, better, or worse effect? I'd love to hear your opinions, so please respond to This email address is being protected from spambots. You need JavaScript enabled to view it. and keep the debate going. During this greatest of American seasonal pastimes called the presidential elections, it might be revealing, and maybe even philosophically entertaining, to share with your industry peers.
Kicking off the debate, here's commentary from one of PFFC's readers regarding an article featured on the July '04 cover, The Latitudes of Lean, by Teresa Koltzenburg, as well as my editorial, titled Wal-Mart Revisited in the same issue:
I enjoyed your “lean” article. Whatever the buzzword that's fueling it, squeezing every ounce of waste out of the domestic manufacturing process sometimes still isn't enough, as Yolanda pointed out in her commentary. Nonetheless, the challenge of striking a balance between “lean” operations and maintaining overall product and service quality, all the while keeping the price point at a competitive level, is indeed delicate. — John Giesfeldt, Directions Inc.
Along the same lines, another debate centers around “outsourcing” of manufacturing jobs, specifically converting jobs to overseas converters. How many of you out there are first-handedly acquainted with losing a job to an overseas converter?
Some would argue the constraints of just-in-time delivery and supply chain management advantages found here at home actually keep many if not the lion's share of jobs right here on US soil. Long lead times frequently disqualify overseas converters as competitors. And, without the computerized automated management services many converters are establishing with their own suppliers as well as their customers, overseas converters (that frequently aren't all that sophisticated) simply can't compete.
The July '04 cover article of Business 2.0, a magazine I receive at home, is titled, “It's the Global Economy Stupid. Stop whining about outsourcing. India's booming middle class has $420 billion to spend. Here's how to grab your share.”
I rarely recommend reading anything but PFFC, but hearing your professional opinions on this subject would make for a great debate. Is outsourcing a perceived or real threat to the US converting industry?
For more information on the converting industry beyond this issue's contents, visit pffc-online.com. We offer content there you cannot find here, and it is updated weekly. Once there, be sure to e-mail your feedback to me, This email address is being protected from spambots. You need JavaScript enabled to view it..
