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The Tide is Turning - Exporting US Goods to China

The tide is starting to turn opening up huge export opportunities for US based manufacturing companies! According to recent CNBC article, "The Chinese aren't drawn to American goods because of their low cost, as was the main attraction for U.S. shoppers in the '90s; they simply want American products. And often, they're actually willing to pay a premium to access them."

Jack Ma of Alibaba, is betting on exactly that and as a result; "We want to connect small business in the West with the largest, fastest-growing market in the East,"the Chinese middle class is craving.You can read the full article here:

Some time ago, Passport Software, Inc. proudly hosted a free webinar with Harry Moser of the Reshoring Initiative, an organization dedicating to helping bring manufacturing jobs back to the USA (you can view this webinar by visiting: During his presentation Harry showed graphs indicating that the cost of living in China was on the rise, and based on the trajectory at that time, the cost of producing goods in China was on a collision course with the cost of producing goods in the United States. In fact Harry was predicting that these costs would level out in or about 2015.

Based on recent conversations with Stan Hogrebe, President of Dazor Manufacturing and a current PBS Manufacturing user, he brought all of his outsourced production back from China and is now working with US based manufacturers. Most of these companies are in his region. He found the cost of doing business in China continued to rise and it began to offset the quality issues, and high shipping cost they had been willing to tolerate when prices were much lower.

After being contacted many times by their former Chinese vendors, offering to requote, Stan decided to let them do just that. He was surprised to discover that he was getting better prices stateside. That was before factoring in the shipping costs and anticipated quality issues.

Now that the tide is turning, and the Chinese middle class is "craving" products made in the USA, it's time to ensure your business is positioned to be able to provide the products they desire. Automating your operation by implementing an ERP system like PBS Manufacturing can ensure you are positioning your company to make your products efficiently, and maxamize your profitability.

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