America doesn't want my business

AP

I want to start making some of my products in America again, as I did for years. With unemployment at a near 30-year high, and the domestically-made percentage of goods in my industry a mere rounding error, one would assume that the surviving U.S. factories would be clamoring for the work. There are still quite a few shops set up to do what we need, and we've all but thrown ourselves at them. But apparently America doesn't want my business.

China currently owns most of our industry and is still, of course, the low cost provider (though it often gets more of a bum rap than it deserves). But recent labor, material and shipping cost increases and exchange rate issues have narrowed China's advantage, and for those and other reasons I think the time is right for us. Our products are not mass market, and we are fortunate that our customers are willing to pay a bit more for what we make. So we're ready, able and eager to at least give it a shot.

We used to sew bags in our own shop here in upstate New York, so I know exactly what's involved, and as you might imagine, it's not rocket science. In fact, I have considered opening a small sewing operation again, but for a variety of reasons would prefer to partner up with one. So I've tried, for about a year, to find that partner and bring some work back home. I've contacted a dozen possible suppliers and gotten nowhere. Why? Here are just a few of the dead ends:

- The supplier is "unable" to do the work. As I wrote here recently, I think "can't" is a dirty word. But most of the prospects we've spoken to use it liberally: "We can't find those materials"... "We can't make it look that nice"... "We can't do that kind of detail work." When I encourage them to give it a try, even tell them we'll tweak the designs to suit their production, I get "Geez, I just don't think we can do this..."

- The supplier is worried about cost, even when I'm not. Rather than leading with enthusiasm for the prospect of a new customer, most of the factories I've spoken to have started the conversation by saying they can't compete with imports. I tell them I am well aware of that, and that -- though price does matter -- I would be happy to pay what I believe to be the current "domestic differential." There are no guarantees that the costing will work out, of course. But despite my encouragement and willingness to pay, more times than not, the response is that they don't even want to try.

- The supplier is unresponsive. We've found a few shops claiming to be able to do the work, and claiming to be eager to try. We sent them prototypes and specifications and they promised quick turnaround on quotes and samples, only to vanish for weeks, or forever. If I send designs to Asia, I get pricing and beautiful samples in days. Say what you will about "offshoring," but quality factories overseas are hungry to win business, they work hard to do so, and they keep promises. If, as in our case, price is not the top priority, how can a domestic factory expect to compete when it can't even maintain basic business and service standards?

- The supplier gets cold feet. There was one factory, well-known and respected in the industry, with which I actually came very close. In fact, so close that we gave them a very large (for us) purchase order, and I signed it with a huge smile on my face. They accepted it, and I started counting the days until we could tell people we were making bags in America again. Two days later, I got a call from the factory rep saying his boss wanted to cancel the order. Why? Because he was "too nervous" (his words) about making our stuff the way they said they could for the prices they quoted. This company -- with decades of experience -- by its own admission, simply got cold feet.

Of course every industry has its own issues and challenges, but these general issues are not unique to my business. I think that America has more opportunities than you might be led to believe, but is often its own worst enemy, having lost so much of the inspiration, ingenuity, tenacity and enthusiasm that got it this far.

It's beyond frustrating. We all hear, every day, various iterations of the "America is sending jobs overseas" complaint. In some cases that's true, and some jobs and industries aren't going to come back. Yet here I am, a small business owner, trying to do his small part to hang the flag in some products again, and America doesn't even want to give it a shot. I'm not giving up, but I am disappointed and disheartened.

Like life, business isn't always fair. But when opportunity knocks and we don't even try to answer the door, we have only ourselves to blame.

[Barbaral39]

Until about 10 years ago, our area was full of mills and mill work. Then Wrangler and the other large American clothing companies left for China. There are still some very experienced individuals who do industrial sewing projects here for the military. My husband and I own a machine shop here. I think I know a shop in Huntsville (veteran owned) that is able to help you. How do I get in touch with you?

[hessmj]

So nice of you to comment and offer the introduction... we're always happy to meet new people in the industry. Best way to reach me is to send a note to skoobaservice(at)skoobadesign(dot)com and say it's for me, re: CBS article. It will get to me immediately and I'll get back in touch with you. Thanks again

[Hala_c]

"The supplier is worried about cost, even when I'm not."

Great! After they've paid for supplies and then you withdraw from the contract, there is no reason for YOU to worry about the cost as it's no skin off your assets.

"There are no guarantees that the costing will work out, of course. But despite my encouragement and willingness to pay, more times than not, the response is that they don't even want to try."

Just because YOU are willing to give it a look doesn't mean that everyone else should be willing to waste time. I wouldn't waste my time without some form of commitment to cover my costs involved in developing an estimate and I would leave myself plenty of wiggle room. By the time all is said and done you would reject and I would have wasted time and money that I can't get back.

Mister, your expectations are too high. You expect America on the low side of a downslide to be able to compete with China in the midst of its growth.

[hessmj]

Thanks for your comments. I'm not sure what industry you are in, but in mine (and certainly my own business), we don't expect any supplier to invest in parts, tooling or anything else without an order. Quoting a price is a normal part of business, and the time spent doing that is the only real investment a prospective supplier needs to make. In fact, contrary to what you think ("no skin off your assets"), the process costs us more in time and money than it does the prospective supplier. We have to create drawings, specs, material standards, and at times prototypes and mockups. We most definitely have skin in the game, and we'd be foolish to set out to establish imbalanced or unhealthy relationships. Wasting time hurts everyone.

Perhaps your business is different, but our relationships don't work that way, nor has any industry I've ever been in.

The most notable and unfortunate comment you made was that "(my) expectations are too high". It is a sad day when we have to lower our expectations to do business in America. If you read my piece, you'd see that I am very specifically not looking for a supplier to compete with China. I am looking for a good partner -- and willing to pay a premium for it -- who can provide good service and build a relationship.

Your outlook for America is very bleak, and many people agree (in fact, I often do too). But the entire point of the article is that the "downslide" you refer to is not entirely beyond our control.

I do again appreciate your comments.

[hessmj]

P.S. I think you misunderstood the comment "The supplier is worried about cost, even when I'm not."

[tsigili]

A real business person makes their own products........they don't farm it out to someone else.

[hessmj]

That's a great thought and I respect and apreciate your comment. My family has made its own products, in its own factories, over two businesses and 50 years, and in a perfect world you are right--every company would do its own manufacturing. But in the real, modern world, those companies are the minority. Most of what you own (your iPod, phone, TV, camera, clothing, housewares, etc.) was not made in factories owned by their brands. There are many reasons for this and you might not like them, but it is what the world is now, and it certainly does not define a "real business person." Thanks again for contributing your thoughts.

[Charley Burford]

One of the consequences of globalization that the pinheads and bean counters in Washington don't understand is psychological--it leads to mass cynicism, hopelessness, and uncertainty. They can't be erased so easily--it's hard to recoup.

[Charley Burford]

Globalization is something that I've always been leery of. Of course there has to be international trade at some level, but this new unregulated, unbridled brand of it is, and has always been, a ploy of the rich to get richer at the expense of all the rest of us. A country as big and as large as the USA should be able to meet most won needs on its own, and if we can't, then we should learn to do without. Growth is another philosophy that is false and folly. Globalization and Growth--the two work hand-in-hand to our ultimate detriment. Moderation and Balance should be the philosophies we follow regardless of what short term suffering it leads to.

[hessmj]

To be clear, I absolutely believe in free trade. I understand that there is unfairness and even corruption in a global marketplace -- it's imperfect and sometimes ugly -- but in the end if you believe in Capitalism, markets tend to sort themselves out best with the least intervention, regulation and other friction. Create a barrier in one place and the vacuum will always be filled some other way. Get in the way of one low-cost labor country and you can bet, with 100% certainty, that another is waiting in line behind it.

Certainly it bothers me when American companies lose business for the wrong reasons, but when they lose business because they can't or don't "step up," they make it hard for anyone to buy any argument for trade protection. It is indeed a frustrating situation... our country has opportunities but squanders them. Thanks for commenting.