The Washington Times
  • Subscribe
  • Times News Services
  • RSS
  • Mobile Headlines
  • e-edition
  • E-MAIL ALERTS
  • REGISTER
  • LOG IN
  • E-MAIL ALERTS
  • WELCOME
  • Your Profile
  • Log Out
  • Front Page Image
  • Classifieds
  • Autos
  • Real Estate
  • Jobs
  • Special Sections
  • Customer Service
  • Home
  • News
  • Opinion
  • Sports
    • NFL
    • NBA/WNBA
    • MLB
    • NHL
    • Tennis
    • Golf
    • Motorsports
    • Soccer
    • NCAA
    • Olympics
    • Outdoors
    • Other
  • Culture
    • Home & Living
    • Family & Kids
    • Fashion
    • Food
    • Travel
    • Health
    • Washington Visitors
    • Books
    • Military History
    • Life
    • Auto
    • TV Listings
    • Movie Listings
    • Death Notices
    • Entertainment
  • Themes
  • Communities
  • Shopping
    • Stores
    • Coupons
    • Daily Double
    • Promotion
    • How It Works
  • Videos
    • Two Guys
    • Birnbaum on Washington
    • Liz Glover
    • Amanda Carpenter
    • Morning Briefing
    • Documentaries
    • Joe Giganti
    • Video Game Minute
  • Podcasts
    • About Headlines
    • Audio and Radio
    • America's Morning News
  • Politics

    Massive bill steals show in health care debate

  • Commentary

    Al Qaeda's prospects

  • Sports

    Slow start dooms Capitals

  • National

    Winfrey: Prayer influenced 2011 exit

  • Politics

    Report: ACORN mismanaged grant money

  • Politics

    Obama's approval rating falls below 50%

  • Local

    Report: D.C. schools chief Rhee mishandled sexual misconduct scandal

Home » News » Business

Monday, July 28, 2008

'Made in USA' starts to make a return

Rate this story

Average 0.00
after 0 votes
Login or register to rate this story

Producer costs rise overseas

  • Font Size -+
  • Print
  • Email
  • Comment
  • Tweet this!
  • Share
  • Article
  • Comments ()
  • Click-2-Listen
  • Videos
Please stand by, images loading!
  • Exxel Outdoors employee Anita Fletcher sews a zipper on a sleeping bag at Exxel's Haleyville, Alabama factory which will produce almost 1.5 million sleeping bags this year. (Dahlia Greer/Exxel Outdoors)
  • HOME GOODS: Emma Flores helps manufacture chairs at the Artco-Bell factory in Temple, Texas, as a trend toward insourcing emerges. (Photograph provided by Artco-Bell Corp.)
  • Raymond Hickem secures a steel pedestal on a teacher's desk at the Artco-Bell factory in Temple, Texas. The gap between the cost to produce goods in the U.S. or to produce them abroad has narrowed. (Stephen Sykes/Artco-Bell Corporation)

More Business Stories

  • Obama: Asia trip a boost to U.S. economy
  • Stocks fall for third day as dollar continues its rise
  • Trump selling nutrition
  • Falling fuel demand hits refineries

By Whitney Stewart

In the wake of a decades-long manufacturing exodus overseas, the climbing cost of outsourcing has some U.S. companies looking homeward.

The gap between the cost to produce goods in the United States or to produce them abroad has narrowed, thanks to a decrease in China's competitive advantage.

The Chinese yuan has appreciated 18 percent against the dollar in the past three years, making exports more expensive and less competitive. Chinese wages have more than doubled over the past five years, and the Chinese government has lowered or eliminated tax breaks on exports.

Meanwhile, oil prices have soared from $25 a barrel in 2002 to more than $125 today, discouraging American businesses from shipping manufacturing operations overseas.

“The days are over where you just think you can go over to China to get something cheap,” said Harry Kazazian, chief executive officer of Exxel Outdoors Inc., a Haleyville, Ala., producer of outdoor recreational gear.

Exxel has been doing just that since 2005, when executives detected the beginnings of a market shift favoring homemade wares.

“It's kind of like the light bulb goes off in your head,” Mr. Kazazian said.

“We really need to come back,” he told Exxel President Armen Kouleyan while they toured their production plants in China.

Colleagues raised their eyebrows at the plan, but Exxel soon began investing in its Haleyville, Ala., factory in preparation for a move back to the United States. The company increased the American portion of production of its best-selling family sleeping bag from 40 percent to more than 60 percent, said Mr. Kazazian. He plans to increase that to 90 percent by 2010. The company will produce 1.5 million sleeping bags this year and expects to make 2 million next year.

“We're kind of on the front end of the trend,” Mr. Kazazian said, explaining that by maintaining its U.S. factory when other companies closed their domestic plants, Exxel avoided huge startup costs and delays when it decided to repatriate production. “We wanted to keep our options open. Whether you call it hindsight or you call it good fortune, I think that is why we're ahead of the curve.”

[Get Copyright Permissions] Click here for reprint permissions!
Copyright 2009 The Washington Times, LLC

123Next »

Post a comment

There are comments on this article, submit your opinion!

Please login or register to post a comment

Ask a Question

You Report

Do you have another point of view, photos, audio, video or more information about a story?

Top Stories

Most Read

  1. Health bill could get 34-hour reading in Senate
  2. Work site arrests of illegals fall dramatically
  3. KELLNER: New Apple mouse really is 'Magic'
  4. Senate health care bill creates new marriage penalty
  5. PRUDEN: Obama bows, the nation cringes
More Top Stories »
  1. 19 gang members face racketeering charges
  2. EXCLUSIVE: Taliban chief hides in Pakistan
  3. Md.'s $1 billion in budget cuts not enough
  4. Palin met by hundreds in Michigan
  5. EXCLUSIVE: Hoffman considering recount claim

Most Shared

  1. Religious leaders vow civil disobedience on anti-life issues
  2. Senate health care bill creates new marriage penalty
  3. Report: D.C. schools chief Rhee mishandled sexual misconduct scandal
  4. PRUDEN: Obama bows, the nation cringes
  5. Faint Shroud of Turin text proves artifact real, book says
More Top Stories »
  1. EDITORIAL EXCLUSIVE: On terrorists, Justice recused
  2. EXCLUSIVE: Taliban chief hides in Pakistan
  3. EDITORIAL: Chicago, Afghan-style
  4. Tribe battles to keep logo for Fighting Sioux
  5. Socialist or vast expansion?

Most Commented

  1. PRUDEN: The Third World and Obama
  2. Army lacks guidelines to deal with jihadists in ranks
  3. Health bill could get 34-hour reading in Senate
  4. Work site arrests of illegals fall dramatically
  5. Senate health care bill creates new marriage penalty
More Top Stories »
  1. Religious leaders vow civil disobedience on anti-life issues
  2. EDITORIAL: Get ready to bomb Iran
  3. Dems up pressure on health bill's holdouts
  4. EXCLUSIVE: Taliban chief hides in Pakistan
  5. Unforeseen climate 'crisis'

Listen to Washington Times Radio

  • America's Morning News

    with John McCaslin and Melanie Morgan

Question of the day

Do you think Pakistan has done enough to help us find the terrorists who want to hurt the U.S.?

Blogs & Columns

  • Hot Button Blog

    RNC: Breast cancer recommendations may lead to 'rationing'

  • Belief Blog

    Evangelicals OK civil disobedience

  • Out of Context

    Foods that might kill libido

  • On the Fly

    United lifts some 'award' blocking

  • Technology

    Facebook wins round against phishing spammer

  • Redskins 360

    Rookie Williams hurts ankle

  • SNOBlog

    Beyond 'Woody'

Videos

Advertising Links
TWT Store
  • e-edition
  • Print Edition
  • Weekly Washington Times
TWT Affiliates
  • Middle East Times
  • Golf
  • UPI
  • Arbor Ballroom
  • Washington Times Global
  • About TWT
  • Press Room
  • F.A.Q.
  • Work for TWT
  • Advertise
  • Sponsors
  • Contact Us
  • Privacy Policy
  • Site Map

All site contents © Copyright 2009 The Washington Times, LLC.