Parson
Member
I've a good mind to work on a 10,000 piece order for a quality US made pen kit. I'm betting I could get the price low enough to make it attractive.
Part of what changed is that they couldn't compete on price with goods made outside of the country. Also, we have to consider that many of these companies sell their items not just in the US. Why wouldn't an international company chose to manufacture it's products wherever that it most benefits the bottom line? It wouldn't. In fact, it couldn't, both because it is competing against goods made at lower cost and because the company has a fiduciary responsibility to it's shareholders to maximize revenue.I'd be in favor of assessing huge tariffs on products that are imported
by companies who used to manufacture them here.
They used to make them here, they made money when they made them
here.. what changed?
Oil and Gas are a bad example for this. The prices of which the companies have next to no control over as they are sold on the commodities market and the prices get set by the buyers who base it on supply and demand.America still leads the world in manufacturing. China workers are much cheaper but one American worker produces 80% more goods. The reason companies leave is soley due to taxation. This is a global economy and there's no stopping that. We have highest corporate taxes. Business is to make money. Businesses don't pay taxes too in reality that passes on to consumers. So if u make 8 widgets for every 2 from china but u pay 0 tax in China and 40% in usa, you can't compete.
Let's say you make $1 net per widget made in the US and $2 net for a widget made in China. That would be $8 and $4 respectively. After taxes it's $4.8 versus $4. I'd move back to the US, especially if my main sales market is the US. Easier to keep sales up if you are employing the people that buy your product. Lay them off and suddenly they can't buy any product.
Look at how they want to tax oil companies more money because they have 50 billion profit and they claim it will lower gas prices. The thinking is companies want to pay less taxes so they will lower the prices to accomplish a smaller tax bill. That's backwards thinking insanity. With reality thinking, companies don't pay taxes consumers do, the extra taxes will simply raise prices.
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What's the status of the USA made kits?
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What's the status of the USA made kits?
oh, we're just waiting for one of us to come up with a couple of hundred
thousand dollars in play money to have some made.. :tongue:
My wife and I have driven imports as well as domestics (I drive a VW GTI, she drives a 1999 Caravan), but I am ready to give my auto $ all to Detroit the next time. Besides the very relaible Caravan, we also had a 2001 PT Cruiser, a really good car (gave it to my daughter when she graduated from college.) I've never driven Fords, but seriously considering a new Explorer. I hate to see ALL manufacturing leave this country. Some is inevitable, some will never come back, however, some can be saved.
Just my $.03 (adjusted due to federal bloat and excess).
Stainless Steel now made in the USA are competitive in price with comparable kits are available from a member here.All the USA pride and good intentions aside, I think any effort to manufacture pen kits here would quickly become mired in regulatory problems. In my engineering days ('90s), the electronics mfr. I worked for considered etching its own circuit boards. The company's goal was to rein in the long lead times of overseas board mfrs. by making them stateside. However, after discovering the almost insurmountable EPA and OSHA regulations surrounding the use and disposal of various chemicals and copper salts, we gave up the idea and continued off-shoring them like most everyone else in the industry.
Pen kits, with the different platings and metals involved, would no doubt face great regulatory scrutiny as well. Just the disposal of heavy metal byproducts, acids and other chemicals would likely be an EPA nightmare. Add employees and you have OSHA coming into the mix.
However, a small craftsman operation, making unique, handmade hardware, could be viable. Perhaps a skilled silversmith, jeweler or the like. The cost would be through the roof, of course. But think of the beautiful, one-of-a-kind hardware that could come out of such an operation. The mechanisms would probably have to be the usual off-the-shelf components, but the caps, clips, bands, etc. could certainly be custom.
America still leads the world in manufacturing. China workers are much cheaper but one American worker produces 80% more goods. The reason companies leave is soley due to taxation. This is a global economy and there's no stopping that. We have highest corporate taxes. Business is to make money. Businesses don't pay taxes too in reality that passes on to consumers. So if u make 8 widgets for every 2 from china but u pay 0 tax in China and 40% in usa, you can't compete.
You are correct that taxes are not the biggest issue although at 40% higher our world's highest corporate tax rate is a factor.. Actually cheap labor isn't either (there are many countries with lower labor costs than China). The biggest culpret is, in my opinion, regulation. Recently the CEO of Intel gave a speech where he said that building a factory in the USA would cost a billion dollars more than building it off shore. The cause was not the cost of labor but the cost of regulation. The USA (a.k.a the land of the free) recently surpassed India as the most highly regulated industrial country in the world. Complying with regulations (EPA/OSHA/LABOR/CLEAN AIR/CLEAN WATER/HAZARDOUS WASTE,ETC.) is far more costly to many manufacturing businesses than corporate taxes.America still leads the world in manufacturing. China workers are much cheaper but one American worker produces 80% more goods. The reason companies leave is soley due to taxation. This is a global economy and there's no stopping that. We have highest corporate taxes. Business is to make money. Businesses don't pay taxes too in reality that passes on to consumers. So if u make 8 widgets for every 2 from china but u pay 0 tax in China and 40% in usa, you can't compete.
The corporate tax rate in China is 25%, the US is 35%. Does the song and dance routine about taxes really sound right? No it is about cheap labor, a few dollars a day compared to a few hundred dollars a day is the issue.
skiprat said:Mmmmm.....patriotism is great, but we have to be honest and realist at the same time.
Whether kits were made in USA ( America is actually a continent not a country :winkor UK or any other 'first world' country, the price would definetely be more than a 'few bucks more'. As long as people want value for money, then we don't stand a chance of seeing them made here.
I personally hope they never get made in any first world country as that would mean I'd have to give up the hobby as I couldn't afford it.:wink:
Just my opinion....so don't shoot me:biggrin:
Made in the USA? You might find that the question may not mean what you think it really means.
Made in Australia? might also be a similar question. I have quite a few friends in the high end garment industry which manufactures Made in Australia clothing. The whole shirt is made in Main Land China except the buttons and button holes. According to WTO and Australian law definition only the last 5% needs to be assembled and finished in Australia for the item to be called made in Australia. They sew in the buttons and put on the button holes, give it a wash and iron, then put the "Made in Australia" sticker on it.
Vehicles are the same. I found it interesting when one of the high end car wheel manufactures in South Australia went broke and was bought out by it's biggest customer - Harley Davidson Motor cycles. The spokesman for Harley Davidson said they produced the worlds best wheels are very competitively priced and they couldn't afford not to have this business go under. This only showed to me that one of the US made bikes had Australian wheels on them.
There are several things which make it hard for a totally made US pen kit. You might find that one day someone will call it a US made pen kit but only the last 5% is done in the US (all the components sources overseas are put into the bag in the US and a made in USA sticker on it).
The factors preventing this as highlight by previous post include high wages, EPS (Erin Brockovich - hexavalent chromium in drinking water issues). But another factor which I think is missed is the disparity of scrap metal price and new billet prices.
Pen parts are manufactured from solid brass tubes. Even the brass tubes we use are not extruded from a machine that way, it is actually machined out a solid rod of brass tubes. In China and Taiwan, the waste (scrap) is sold back to the manufactures of the solid brass rods at a 20 - 30% price difference.
So if buy it in solid rod for $10/lb they will buy it back at $7/lb. This compares to us in the western world (I am not currently educated in the current price for brass) would buy the rods for about $25/lb and only get $2/lb as scrap. Pen component making is a very wasteful procedure so scrap metal prices are a important part of the equation. Ever turned a bowl and see all the wood shavings on the floor?
This is just another factor that we in the West seem to forget about.
There is a lot more too it as well but I will stop ranting now - Australia Too has become a non-manufacturing country, we are now nothing but the worlds mine pit and raw agricultural producer.
Mmmmm.....patriotism is great, but we have to be honest and realist at the same time.
Whether kits were made in USA ( America is actually a continent not a country :winkor UK or any other 'first world' country, the price would definetely be more than a 'few bucks more'. As long as people want value for money, then we don't stand a chance of seeing them made here.
I personally hope they never get made in any first world country as that would mean I'd have to give up the hobby as I couldn't afford it.:wink:
Just my opinion....so don't shoot me:biggrin:
Made in the USA? You might find that the question may not mean what you think it really means.
Made in Australia? might also be a similar question. I have quite a few friends in the high end garment industry which manufactures Made in Australia clothing. The whole shirt is made in Main Land China except the buttons and button holes. According to WTO and Australian law definition only the last 5% needs to be assembled and finished in Australia for the item to be called made in Australia. They sew in the buttons and put on the button holes, give it a wash and iron, then put the "Made in Australia" sticker on it.
Vehicles are the same. I found it interesting when one of the high end car wheel manufactures in South Australia went broke and was bought out by it's biggest customer - Harley Davidson Motor cycles. The spokesman for Harley Davidson said they produced the worlds best wheels are very competitively priced and they couldn't afford not to have this business go under. This only showed to me that one of the US made bikes had Australian wheels on them.
There are several things which make it hard for a totally made US pen kit. You might find that one day someone will call it a US made pen kit but only the last 5% is done in the US (all the components sources overseas are put into the bag in the US and a made in USA sticker on it).
The factors preventing this as highlight by previous post include high wages, EPS (Erin Brockovich - hexavalent chromium in drinking water issues). But another factor which I think is missed is the disparity of scrap metal price and new billet prices.
Pen parts are manufactured from solid brass tubes. Even the brass tubes we use are not extruded from a machine that way, it is actually machined out a solid rod of brass tubes. In China and Taiwan, the waste (scrap) is sold back to the manufactures of the solid brass rods at a 20 - 30% price difference.
So if buy it in solid rod for $10/lb they will buy it back at $7/lb. This compares to us in the western world (I am not currently educated in the current price for brass) would buy the rods for about $25/lb and only get $2/lb as scrap. Pen component making is a very wasteful procedure so scrap metal prices are a important part of the equation. Ever turned a bowl and see all the wood shavings on the floor?
This is just another factor that we in the West seem to forget about.
There is a lot more too it as well but I will stop ranting now - Australia Too has become a non-manufacturing country, we are now nothing but the worlds mine pit and raw agricultural producer.
Using this argument and if I remember my customs regulations - remember I've been out of the industry for 6 or 7 years - the regulations say something to the effect that if an article is significantly changed in it's appearance by a process, then that article can be marked as "made in ***"... so if you take a Chinese/Taiwan Pen kit, An Australian wood blank, and so significantly change the looks of the items... it's a made in USA pen... or in Skip's case, "made in UK"....
Constant and Mark are making a very nice pen - in his shop. HUGE machine. Take a look at Lazerlinez.

