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 Thursday, July 03, 2008
Back on the Made in American Bandwagon?
Posted by Beth

I've noticed a lot of news reports lately on a growing Made in America trend. Unlike past Made in America trends, this isn't waving the flag of nationalism but rather a response to the growing costs of getting stuff from elsewhere to here.

The new Made in America trend starts with the premise that rising transportation costs are making it almost  as, or more cost-effective than, making some products here instead of Asia. According to one report the cost of shipping a container has tripled in the last year! This mostly effects larger/heavier items such as furniture and products with double shipping- specialty supplies get shipped to China then the finished product gets sent back.

I'm not sure how this will affect scrapbooking because for the most part the items manufactured overseas- even with shipping increase -are unlikely to be manufactered here. What this may do is slightly close the gap between the costs of paper made here versus overseas. You might even see some tool manufacturing move back.

Luckily for our industry you can sqeeze lots of paper, stickers and embellishments in one container but still, when products cost a few pennies and shipping costs triple increases will have to be passed along eventually. Manufacturers are already working on slim margins.

I know vendors are working very very hard to hold the line on wholesale costs. I haven't heard of anyone specifically saying they will pass along price increases in  third quarter but I can't see how it can be avoided.

I'd like to hear from manufacturers and how you are dealing with the fuel/transportation squeeze. Is there a way industry members can be working together to save money?

Something to thing to think about as you're standing over the barbeque or baking on the beach this weekend. Have a safe, safe holiday.--Beth



7/3/2008 9:25:32 AM (Eastern Daylight Time, UTC-04:00)  #  
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