Popular Woodworking 2001-10 № 124, страница 8

Popular Woodworking 2001-10 № 124, страница 8

ing. "They've learned the money is in new products," so now they are bringing ideas to us, says Otto of Jet.

Success a Double-Edged Sword for Taiwan

So if prices are already low when adjusted for inflation, why is there a push for even lower prices? An aging baby boom population taking up the woodworking hobby, reasonably priced tools, and the concentration of retail power by home center mega-stores such as Home Depot and Lowe's all ensured the success of manufacturing in Taiwan. Now these forces have driven, if unwittingly, some manufacturing off the island and on to mainland China.

Some U.S manufacturers/importers say the promise of greater unit sales by the big retailers comes with the demand for lower prices. And since most of the efficiencies in the manufacturing process have eliminated as much cost as possible, reducing the cost of labor is the sole recourse. With labor shortages and rising wages in Taiwan, the vast low-wage labor pool in China is the obvious solution.

Added to this are huge incentives to relocate, such as:

• An aggressive campaign by the

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Circle #134 on Resource Directory Coupon

Circle #138 on Resource Directory Coupon

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