Other Benefits of Leaving
Peerless, with a product portfolio that includes flat-panel mounts, projector mounts, A/V carts and cables, also has found that its ability to implement product or process changes has improved since pulling out of China.
When you're making product in China, "you have to have at least a 30-day supply, if not a 60-day supply, in your inventory," Campagna says.
"You have another 30 days on the boat. Your supplier is working on the next 30 days of inventory, and then his supplier making all the components has another 30 or 60 days of supply.
"So your supply chain is huge. If you want to make a design change, it takes forever."
Add up the costs of IP protection, quality control, freight and other factors, and Campagna estimates that it was 10% to 15% cheaper for Peerless to manufacture in China versus the United States.
"So for 10% to 15%, we'd rather have a little bit less profit and a lot more control."
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