September, 2007

billiesumner — Sun, 16 Sep 2007 20:36:39 -0600

September, 2007 Indianapolis, Indiana

Is Globalization good for America? Stadium and theater seating manufacturers go to third world countries.

The large outsourcing of U.S. manufacturing jobs that began years ago continues today. Michigan, a furniture manufacturing center, lost thousands of manufacturing jobs in the last few years. North Carolina experienced a similar fate, as has every state in the U.S.
U.S. arena seatingand theater seating seating manufacturers have in recent years outsourced and manufactured seating in third world countries, for example Mexico, China and Malaysia. However, Preferred Seating, located in Tennessee, is struggling upstream to supply manufacturing jobs here in the U.S. Preferred Seating wants to grow the business in the U.S., create jobs and contribute to the U.S. economy.

The larger seating manufacturers who have the capital to build factories in third world countries make larger profit margins when they import seating parts from countries where labor and materials are less expensive. These companies argue that the public benefits from lower prices for their products. However, they sell their auditorium seating and theater seating for the same price as U.S. manufacturers, but make more profit. While these companies are making stronger sales, they are adding few jobs.

A leading seating manufacturer stated in “The Grand Rapids Press, Grand Rapids Michigan, Jan 23, 2005 the following:
“Absolutely, every company should be looking at China and offshore production, whether or not they actually do it. The good old days are just that – old, and the climate will never be the same. It’s now a global world where people don’t buy (just) from their country anymore. They buy the product that fits their needs, and a lot of it has to do with cost.”

While standards of living have increased as third world countries become more industrialized, they have fallen in developed countries. Was it not the industrialized revolution in the U.S. that contributed to the U.S. becoming a world super power? Losing our manufacturing base will make us more vulnerable to those countries we are allowing to manufacture our products. Most of these companies have very different world views and ideologies. This type of dependency has not always been positive for the U.S. For example, depending on the Middle East for oil affected our economy when war came to this area of the world.

Lower wage, unskilled earners are affected the most. They do not have skills that can be applied to other jobs. Education, with the ability to change careers, is the key to survival. The only answer that political and business leaders have agreed to so far is the necessity of an educated, adaptable workforce. But who is going to pay for the massive reeducation of the dislocated labor force, taxpayers?

We may enjoy lower pricing for products. Companies will make more of a profit by outsourcing. However, in my opinion the cost and risk to America is too great for the short term benefits.

Author: Frank Sumner
Preferred Arena Seating and Theater Seating
Indianapolis, Indiana
Tollfree 866-922-0226
http://www.preferred-seating.com

the caramel apple of globalization

scoutbanana — Sun, 15 Jul 2007 13:33:16 -0600

From the When not in Africa. . . blog.

Crunch, Mmm, the peanut chunks trapped in delicious caramel tastes oh so good. You bite and are rewarded with a mouthful of enticing caramel and nut flavors - all of a sudden that deliciousness is tainted by an odd sourish, crunchy, mushy apple flavor. What? Where did this apple come from, I like the outside best. This is the caramel apple of globalization - the outside is so delicious and appealing, but once you hit the apple and core, the fun has ended. Granted this all matters if you run with the majority and toss aside the age-old wives tale of eating an apple a day to keep the doctor away. Too many of us see this doctor everyday - there is no escaping this doctor because all too often globalization is used for ill, just to get the caramel and nuts, not the healthy fruit of the free market, fair trade, and multi-lateral agreements.

Diatribune - the caramel apple of globalization - Comments

September, 2007

the caramel apple of globalization