After having their products manufactured in China the past seven years, The Outdoor GreatRoom® Company brings production back home.
Eagan, Minnesota (PRWEB) October 17, 2011
With the economy still bogged down by the worst recession since the great depression, the U.S. has seen little or no job growth the last year. Companies continue to operate cautiously, as they wait to see when the economy will begin its recovery. Hoping to avoid the mass layoffs that dominated the headlines a few years back, many companies find themselves operating leaner than ever before during this uncertain time. The Outdoor GreatRoom Company (OGC), is one of those companies who are creating jobs in the US by bringing manufacturing home.
To compound the situation, the recession caused many companies to shift manufacturing operations over to China to help cut costs. With Chinese workers making roughly one-10th of what U.S. manufacturing workers make, the cost-savings helped many companies stay afloat as consumer spending drastically decreased.
Hope for U.S. Manufacturing Jobs
Recently, there has been some good news on the manufacturing front for U.S. workers. For the first time in years, manufacturing work has started making its way back from China to America as 21 percent of North American companies have brought work back the last three months, up 12 percent from previous numbers. The Outdoor GreatRoom Company was ahead of the curve on this trend as they moved their operations back on to U.S. soil in 2010.
Good for Our Economy, Good for Our Company
There are many reasons why manufacturing has been moving from China back to the U.S. But for Dan Shimek, CEO of the Outdoor GreatRoom Company, it came down to three things.
“First and foremost, it gives us the opportunity to have a majority of our products be American-made. Not only does this improve the speed in which we can get our products to our customers, but it consolidates all of our operations under one location. We now don't have to account for shipping lags or quality control which has started to become a growing concern in the China manufacturing arena.”
Running an Efficient Operation
Secondly, by making the decision to transition some of the manufacturing from China and a Salt Lake City location, Shimek now has the manufacturing and operations of his fire pits, pergolas and outdoor kitchens under one roof at his Eagan headquarters, injecting new job opportunities for the U.S. economy.
“We have noticed our day-to-day business operations have become quite a bit more efficient since consolidating them all to our headquarters location,” said Shimek. At the end of the day, it makes us a stronger company as we are no longer as reliant on other people to help us accomplish our goals. There is something to be said about controlling your own products, not only from a cost perspective, but from a quality aspect as well.
Most importantly, Shimek is proud that he has been able to do his part to help grow the U.S. economy by bringing jobs that were once held by Chinese workers back to U.S. soil.
“There is a pride aspect of being a U.S. company and being able to say that you are employing Americans to produce your products, especially at a time where job growth has been non-existent. It feels so much better, to be able to accomplish the same manufacturing goals, with Americans producing our products." Even the wood for the pergolas is grown in the USA.
The Future of Manufacturing Overseas
As China's economy has soared, so has the cost of doing business over there. That fact might actually be one of the things the U.S. economy needs to bring much needed job growth back to America. Look for more and more U.S.-based companies to take a hard look at their manufacturing operations as they examine how cost-effective it would be to transition jobs back to the U.S. something Shimek would like to continue to see.
“If more and more companies can do what we did last year and manufacture their products in the U.S., the manufacturing sector can rebound and we can do our part to help the economy get out of the neutral gear it has seemed to be in for so long. This country needs more jobs and that could be one of the easiest ways to help accomplish that.”
The Outdoor GreatRoom® Company was founded by Dan Shimek in 2003. The company builds everything needed to create and outdoor living room. Products include: pergolas, fire pits, fireplaces, outdoor kitchens, lighting and heating.
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