Las Vegas Sun

April 19, 2015

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Letter to the editor:

Companies crazy about outsourcing

I found your article on the San Francisco-Oakland Bay Bridge of interest — due to a parallel in my family. A close relative was a welder for the company that was supplying gates and equipment for the National Finals Rodeo in Las Vegas. A company in China contacted that welding company, ordering a sample of everything they made — which they supplied.

Consequently, the welding company was dropped, and China got the Rodeo business. My relative is out of a job now.

Just another example of the “send the orders to China” syndrome!

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  1. Perhaps I am mistaken but I have the suspicion that, when making a major purchase, good old Ruth compares prices before spending her hard earned money. When she finally decides, does she take into consideration that any of the spurned businesses could go out of business? Why should businesses be any different? It's called competition and it's what allows us to buy HDTV's, computers and cell phones at bargain basement prices as well as groceries, clothing and just about every other thing we shop for. Would Ruth have it any other way? I know I wouldn't.

  2. The U.S. lost another American made vacuum producer to the Chinese: Oreck which declared bankruptcy recently. That makes 3 American brand iconic vacuum makers that have been bought out by the same Chinese owned and operated company [Techtronic Industries]: Royal Appliances founded in the U.S. in 1905, Hoover founded in the U.S in 1907, and Oreck founded in the U.S. in 1963. Dave Oreck, a World War II veteran who founded Oreck vacuums, was the most recognized face in American business for many years. Most of the other American made vacuum brands, with the exception of Kirby made in Cleveland, Ohio, have long ago gone bankrupt, shuttered vacuum production and sales, or went overseas for production.

    Carmine D

  3. Correction: One more American made and sold vacuum cleaner from St. James Missouri: Riccar [also sold under the Simplicity brand name]. Riccar actually bucked the trend and shuttered it's overseas vacuum production recently and moved operations back to U.S. plants. Riccar is commonly referred to as the "the best vacuum you never heard of." And like Kirby, it's made in the USA.

    Carmine D

  4. Comment removed by moderator. Inappropriate

  5. There's a process economists call the multiplier effect wherein the injection of more demand creates more income which in turn creates more demand in a circular flow.

    However, the withdrawal of income from the circular flow will lead to a downward multiplier effect. Therefore, whenever there is an increased withdrawal, such as a rise in savings or import spending there is a potential downward multiplier effect on the rest of the economy.

    You have to wonder if, in the long term, outsourcing isn't hindering our economy by removing income from the U. S. economy and placing it in foreign economies. It certainly could explain the downward trend in income for middle class workers.

  6. Every kid who made it through my Automotive Technology classes and picked up even modest welding skills is employable. Any welder with a basic certification card can go almost anywhere in the US and get a job pretty quickly. Up here in farm and ranch country I can go to any one of a half-dozen ag supply stores and pick from several different brands of gates and panels, ranging from light duty suitable for goats and small critters to stuff that will [usually] bison penned. All of it is made in the US, often locally. That Chinese company had to take a loss to be able to provide those gates and panels and incur lead time plus shipping costs. Maybe the company wasn't really doing such a good job and maybe your relative isn't that good a welder.

  7. @Future....apparently you do not believe in capitalism and free trade [you are aware that they are complimentary, right?] Opening up new markets is advantageous for the United States and US business. In your zeal to blame the President for everything you appear to resort to the twisted logic of the TeaParty/Occupy nitwits.

  8. "Outsourcing is driven by corporate greed."

    The auto industry is a market and consumer driven industry. Consumers' buying decisions ultimately decide what products they want and what countries provide them the cheapest. Hence the likes of stores like Wal*Mart.

    Carmine D

  9. Those hypocrites who scream about our "commie/socialist" president apparently have no problem with American companies shipping jobs to communist/dictatorship countries. Again many in this country worship at the altar of the "almighty dollar" with little allegiance to the United States regardless of the consequences. This global form of "capitalism" we practice will bring this country to it's knees. We will suffer more recessions and depressions because some Americans are too stupid to understand it's the middle class that drives our economy. Cutting taxes and handing government monies in the form of subsidies to the wealthy will only make the wealthy wealthier.

    And then we have the completely clueless who suffer from ODS, Obama Derangement Syndrome. They will believe anything as long as it's anti Obama. Will these people have a life worth living after Obama is no longer president?

  10. @Carmine....36 comments and fewer than a third from us "trusted" types....all of them early. Does that suggest that we are grumpy old men with prostate issues and the anonymenters are lazy dolts who sleep in late?

  11. should change your anonymenter screen name to "Past" or maybe "Luddite" or something similar. We have a leaner, more productive automobile industry and it is because of competition. We have access to overseas markets just like foreign companies have access to ours and we are all better off for it.

  12. China was supportive enough to George W. Bush to buy over $1 Trillion in US Savings Bonds so that George could pursue the war in Iraq without raising taxes on anyone and funnel no bid contracts to defense contractors.

    George and his Texas brother in Faith, Rick Perry warn the rightous about the dangers of godless countries but are willing to lick those godless boots to borrow money and drag the US into incredible debt, mostly to get re-elected.

    At this time, China is swimming in the interest money which provides the financing to build up their military and particularly, their Navy.

    Thanks to the National Rodeo Finals in Las Vegas, the Chinese will have more money for better ships. They are also copying our technology for free, not just welding supplies.

    For that very reason, I will be working to increasing Social Security and Medicare benefits to prevent further wars from being funded.

  13. True - "There was no federal money used to build those plants. Period. And even if there were - that was money George Bush gave GM."

    Thanks for the laugh, I really needed it.

    XYZ is absolutely positively not true......but if I'm proven wrong and it is true, here's another flimsy argument just in case.