Monday, January 7, 2008

Are You SURPRISED by Safetey Issues in Products From CHINA?

It should not be surprising to anyone that there are safety and quality issues with products from China. It has taken decades of struggles, negotiations, litigation, etc. to establish the quality and safety standards in the US. We have a large and well-developed industry that involves procedures, processes, reporting and inspections, as well as compliance and due diligence. Not only are there enormous governmental agencies and industry organizations, but the legal and accounting professions have also developed practices to address these issues. The costs of adhering to standards and inspection procedures add a significant incremental cost to the products.

The infrastructure and processes to assure quality and safety are not present or effective in developing countries, one of the major reasons why off-shore products are so much less costly. This is because of several factors, including the following: (i) There are so many important economic, social and political areas that require attention and funding in a developing society. Resources, whether financial or human or other, are stretched to capacity. (ii) Production goals and objectives are often placed at a higher priority to concerns about quality or safety. Also, as the powerful purchasers demand even slimmer profit margins for the producer, quality and safety concerns and the resulting costs are impossible to consider. (iii) Foreign cultures and corporate ethics may not focus on these issues domestically. We in the US have evolved this industry over time with consumers and workers fighting for protection, and only after production objectives in our own industrialization process were achieved. (iv) The corporate culture and political system operate differently.

If developing countries can not or are not willing to meet the safety and quality standards already achieved by consumers, then maybe critical manufacturing should return to the US. The cost efficiencies achieved by production in China are at much too high a cost in regards to consumer protection and quality of life standards that have been a major achievement and accomplishment for humankind.