I just got my January issue of FSM, and was very saddened to learn that Revell Monogram no longer has any production plants in the U.S. All labor is now done overseas.
Now when I build one of their’ kits I won’t get the same feeling that I had when I knew the kit was produced by American hands.
Yet another U.S. company chooses cheap production costs at the expense of the American worker.
Cheers,
DJ
The reason why many companies do shift factories are not just because of cheap labour, but often the labour overseas is more skilled/geared for that task.
Another reason they might have to increase retail prices by lets say 10%~20% while keeping the plants in the USA, but can keep the same retail price and quality by moving production overseas.
Not many people would like to see a 10~20% increase on their hobbies, and if the sales drop due to increased retail prices than said US worker will still be out of a job as the company goes bust or is bought by anothe international maker anyway.
Another reason might be global distribution, it might be cheaper, faster and more practical to ship from lets say Taiwan worldwide than from Port X in the states.
It can be for a variety of reasons.
From personal experience I have seen what can happen if a company moves manufacturing to China, Kaiyodo did a few years ago and the quality & packaging of their Resin kits improved many-fold.
I believe that the correct term is “low cost” labor and not “cheap” labor. Major companies do have certain quality standards and will definitely not sacrifice the quality of their products. With the advent of trade globalization, companies have gained access to a vast pool of resources around the world giving them more options to improve productivity, quality and increase profitability.
If companies can find the same skills in other countries for a lower price then such companies would definitely look into its options. It is unfortunately sad for those who would be affected by the movements of such companies but it is a reality that we need to accept and learn to live with.
Twenty years ago, the Philippines has become the new destination of global companies in search for low cost labor. Now, however, other labor markets are emerging such as China and Vietnam offering even lower labor costs. It is starting to hurt us, too. But as I have said it is a reality that we should accept. And we should learn to find ways to make our selves competitive again.
Sad news indeed. At least the company still exists as a corporate entity and plans to produce kits.
This is rather sad news…However Im not really suprised. While I try to buy American when and if I can(Which is hard to do in this hobby)others refuse to pay a premium for US made products anymore. Each company has to weigh its decisions on where its Labor Force will be individually based on sound business practises and not on the needs/desire of a few…As Ed said at least they are still with us…
On a side note I wonder how this will affect kit cost with any import fees for the US? Or will it? Im sure it will, just hope it isnt to significant of a change.
I can’t help but wonder when, not if, the day comes that there will be very little manufacturing of goods in the US! Is the standard of living Americans have come to expect creating the global climate whereby jobs of all types continue to flee offshore to other countries, eager to improve their own living standards? Can we blame other countries for trying to emulate the US standard of living? Even if it means losing jobs?
Thoughts to mull over!
Glenn
The high cost of domestic manufacturing is one big reason why the U.S. economy is shifting quickly to service industries. Economic theory doesn’t care about hurt feelings or national solidarity. It’s all about the bottom line…
Mark
I have to agree with the going out of country because of labor costs. My uncle makes jewelry an has a plant in China refining the materials mined here in the US. He does it due to low-cost labor and it is actually cheaper to ship from China to other places outside the US. The laborers in Asian countries get paid less but their committment to their employer supercedes the American worker by far. We are money hungry and they just hungry. People in China get about 250 a month and that just about pays for their food.
In my opinion It has to be inexpensive labor which also includes zero benifits to entice companys to make these moves. The opinion made by MadModelFactory concerning skilled labor overseas, I have to respectfully disagree. The United States has the most skilled and experienced labor force in the world. When a company moves mfg. to Mexico, overseas or any where else in the world, they generally provide training for the new work force. The training is done by our skilled labor . In closing this is a one world economy or close to it and unfortunitly it’s also reality of which we have no control. [soapbox]
crownover.
From my experience working on 3 continents and living in asia I can tell you that:
a.) The USA has not got the most skilled and experienced workforce
b.) DO NOT understimate the quality and dedication of non-us laborers
Nothing wrong with feeling patriotic, but the facts are against you here sorry to say.
Dwight Ta-ala had it quiet right that the manufacturing centres keep shifting worldwide as they prosper and try to get more service-orientated.
So far not many people have asked themselves where those centres will lie in the future when everyone tries to work in a service orientated society and live a first world standard.
China has a huge dedicated and skilled work-force and they will become the next Japan, South Korea or Taiwan when it comes to manufacturing and inventing new stuff.
Problem is that these days everybody wants to buy cheap, live in a big house, drive a fuel guzzling SUV, work in an office reading e-mail all-day, etc. All this costs and thus the demands for higher salaries, medical aid, etc.
This is what drives the companies to look for overseas labour to keep the prices down and the goods flying of the shelf.
How many young people today will choose to work at a steel-plant, supermarket (long-term), plumber, etc for a few $$ an hour when they can sit in an office sipping Starbucks and chatting up the sexy secretary.
Thus blue-collar workers become more in demand, specialised and naturally will ask for higher wages driving the end-product price higher.
Remember that next time you call a service desk at Dell or Microsoft you are most likely speaking to someone in India or similar.
I too, am saddened to see Revell-Monogram leave the U.S., but also understand the economics. However, I also noticed in the Jan '04 issue that the prices of kits from them have increased. If the quality of the kits improve I can live with that as H&T prices are high compared to R-M. Over the last few months I’ve noticed that many of thier line was OOP which seemed to indicate a major change. As to them not getting rid of the old molds, that’s great, but why keep them here and not where they can be produced?[2c]
MadModelFactory
I do agree with many of your points. But the facts of past history tells the story here. The American work force invented and progressed modern mfg to what it is today . The modern World Started with American ideas and inventions 100 years ago with the first successful aircraft flight all the way to the modern day space shuttle. With these ideas and inventions came mfg processes which are in use today around the World. These skilled and experienced people are either still envolved in American work enviroment or have past there skill down from generation to generation. As far as my exprience in the work world I believe Americans have the most skilled and experienced work force today.
If you think I underestimate non-us labor your mistaken. I have seen to many jobs leave America to underestimate any culture after all they have been trained by the United States skilled and experienced work force.
crownover.
Don’t want to start a fight, but you are GRAVELY mistaken and show a lot of ignorance.
Here are some examples of inventions that were not created by americans.
Petrol, Steam & Jet Engines
DVD,CD and MPEG Formats
LCD’s
Radar
Medical achievements
and so on.
The USA relied a lot on European/German scientists & Asian inventions after WW II to win as an example the space race and so on.
Are you aware that Japan had a working plane years before the wright brothers but the project failed due to fundings.
Heck, even your famous and louded Zippo lighter uses an Austrian patent(check the Zippo website for info).
As for your so great advancement in manufacturing, ever heard the terms “Muda” and many other JAPANESE terms/concepts that are widely used and implemented in your so called US factories, ask anybody that works for a Car plant in the states and he will know those terms.
Or watch Discovery channel where they run progams on those topics.
I am finished with this topic.
I do have high regard for the American people. After all, it is them through the Thomasites who started the re-education of the Philippine people at the start of the 20th Century. Not that we are uneducated, actually we are under the 333 years of Spanish Regime. However I believe that a lot of other people around the world possess skills and talents that are comparable or even superior to that of Americans. The Japanese for example are well known for their great craftsmanship, the Chinese for their early inventions, the Europeans for their artistic talents, the Russians, too for a lot of things. I think that it would be unfair to disregard these facts. We no longer live in a world bound by oceans and seas or even culture and I think we need to realize this.
Even as we speak now, we live using technology invented/developed not only in the US but from around the world.
Trivia:
1.) G.E. did not invent the flourescent light. A Filipino did with a family name Flores. He sold the patent to G.E. because he has no money to fund the production.
2.) The lunar rover used during the first moon landings was designed my a Filipino working for NASA. His name was Ed San Juan.
3.) Touch tone dialing was invented by a Filipino, too. This enables us to send fax and eventually connect to the internet.
Just a piece of my mind.
Hey crownover,
Didn’t they teach you about the Industrial Revolution in American schools?
I’m sure the company knows what it is doing and I’m no expert in the field of global business or economics. I remember how easily I was able to get replacement parts from R-M. I hope this continues.
What worries me is the unjust conditions people work in overseas. I hope R-M has no intention to make kits in a sweat shop. I would like to hear from the company that this is the case.
Well, i look at the bright side…
Their HQ is now in my town!
This thread has been very educational for me. If I were CEO of Revell Monogram I would probably do the same if the continued existance of the company were at risk. I just have to feel sorry for Americans who have been pushed out of work. But in this day of free trade and a global economy, I think this trend will continue until American labor is willing to work for much less. But as MadModelFactory pointed out, it may not be that simple. It can cost less to distribute from other areas. And I’m sure there are a myriad of other reasons why companies establish themselves overseas.
But anyway, if this thread continues much further I hope we can dwell less on whose labor force is more skilled or who were the real founders of modern industry and more on what the changes in Revell Monogram will mean to the modeler and perhaps some off-topic banter on free-trade and globalization.
DJ
As for what the future will hold I guess nobody will be able to tell just yet as we don’t know the reasons for the decision.
I just hope they will not discontinue the 1/96 U.S.S. Constitution. Planning on building that and Heller’s 1/100 HMS Victory next Summer. I have a table/cabinet that I plan to display the models on. The two scales are very close so you get a pretty good idea of how they looked relative to each other.
DJ