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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 386.47

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Dec 5 4:00 PM EST

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To: elmatador who wrote (109999)	1/22/2015 12:59:00 AM
From: Elroy Jetson	Read Replies (2) of 218234

There's actually quite a number of companies which have relocated from China back to America. We saw the same thing happen with maquilladores in the Mexican free-trade zone. People become more educated about how production in a distant location with a different culture and less than ideal infrastructure works and doesn't work. A product with time sensitive nature may be very attractive if shipped by container ship, but the exercise can become far worse than pointless if you suddenly have to pay to air freight the finished goods because of delays somewhere along the supply route, or the other alternative is to keep a large inventory to buffer unpredictable delivery. There's a lot of products which are simply not amenable to that sort of sourcing. The shipping cost is often larger than the cost of the product you're shipping, so the cost of the shipping method can make outsourcing attractive or prohibitive. Animation houses in Hollywood have experience outsourcing the creation of the 200 or so Intermediate Cells, between each Reference Frame showing an action point every second or two which American animators draw. China is one source and Tibet a less expensive and newer source. Both cost 50% less than American animation and the work is sent electronically. But the work created in China and Tibet is not up to standard for human characters because, as hard as it is to believe, the humanoid characters in the inter-cells always come back with subtle Asian looking facial characteristics which are not present in the Reference Frames. They also draw trees quite differently from the reference frames. So Chinese and Tibetan animation houses can only be used for: a.) inter-cells with inanimate objects like automobiles - they're good at that; b.) if you want to create the Asian look they produce and your artists can duplicate the Asian look in their Reference Frames; c.) you simply want something really cheap and you don't care at all about the quality - and that's virtually nobody. There's also been a wave of realization that many firms are losing intellectual property as the factory they hire makes their goods while another factory a block away uses the same workers and sourcing to create counterfeit products and sold by they people you've hired to make your stuff. Although the Chinese government has become better about enforcing the law, you're still taking a big risk of creating illegal competition for yourself with many products. The cost and time of testing your products for contaminants and prohibited substances because you can't trust your supplier has also brought production back to the United States.

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