Global economic inventory

[SAJ-99]

Easter is a great time to make an inventory of how global economics works in the moment. We got our 8yo about 10 things.

7 made in China
1 made in Malaysia
1 made in US
Most candies made in US or Canada (including Swedish Fish, lol)
A review of Legos said China, Denmark, and a variety of other countries- so they have a diverse supply chain.

About $100 retail total. General estimate says about $30-40 went to China. Margins are about 40% so that was profit for the maker/distributor and the rest was probably various logistics and materials.

The only way to break this cycle is to convince Americans to stop buying cheap stuff for our kids. In my family, that is not going to happen because no one listens to me anyway.

 

[Nick87]

The only way to break this cycle is to convince Americans to stop buying cheap stuff for our kids. In my family, that is not going to happen because no one listens to me anyway

I think your right about that, I dont see it happening though because people in general really don't give a rip anymore at least imo. I really don't see that happening in this climate when the price of everything (or the value of the dollar, however you want to look at it) is squeezing the middle class family a little harder everyday. I try to focus on buying from local or small business as much as I can, buying domestic sometimes doesn't even seem to be an option for some goods.

 

[BigHornRam]

I went in to a local furniture store to look at mattress toppers for the rv. Noticed the cheaper stuff was all made in China. Sales guy said we sell them as a price point, but you get what you pay for. Don't need to buy junk at this stage of life.

 

[SAJ-99]

I think your right about that, I dont see it happening though because people in general really don't give a rip anymore at least imo. I really don't see that happening in this climate when the price of everything (or the value of the dollar, however you want to look at it) is squeezing the middle class family a little harder everyday. I try to focus on buying from local or small business as much as I can, buying domestic sometimes doesn't even seem to be an option for some goods.

I am not advocating that the US should be making bubble wands or plastic wind-up propellers. I am just curious if we had to implement economic sanctions on China like we did on Russia, what the sacrifice would be. The toy business and dollar stores would bear a heavy burden.

I went in to a local furniture store to look at mattress toppers for the rv. Noticed the cheaper stuff was all made in China. Sales guy said we sell them as a price point, but you get what you pay for. Don't need to buy junk at this stage of life.

I don't think we should label everything Made in China as cheap garbage, although one of the toys broke in the first 5 minutes, LOL. And everything made in the US isn't great either. But your point is made. I think comapnays are looking to diversify supply chains rather than move back to US. There is no way anyone pays $7 for a bubble wand.

Also of note, I couldn't find anything except the books that wasn't substantially made of plastic.

 

[Nick87]

I am not advocating that the US should be making bubble wands or plastic wind-up propellers. I am just curious if we had to implement economic sanctions on China like we did on Russia, what the sacrifice would be. The toy business and dollar stores would bear a heavy burden.

I don't either, however my kids (3 and 1) play with some of my nylint, tonka, and ertl etc toys that were mine when I was a kid some of them were my Dad's for that matter. I buy them a new "die cast" toy now which appears to be made of some kind of bubble gum aluminum and it lasts literally about three days. So is it any cheaper to buy the toy at a fraction of the cost three times? I'm not arguing with your point about the $7 bubble wand, just thinking out loud.

 

[SAJ-99]

I don't either, however my kids (3 and 1) play with some of my nylint, tonka, and ertl etc toys that were mine when I was a kid some of them were my dad's for that matter. I buy them a new "die cast" toy now which appears to be made of some kind of bubble gum aluminum and it lasts literally about three days. So is it any cheaper to buy the toy at a fraction of the cost three times? I'm not arguing with your point about the $7 bubble wand, just thinking out loud.

Good question. On the counterpoint of that, it might not be the best business decision to make a reasonably priced product that lasts multiple generations. Like Crocs shoes - an ugly niche product that is easy to make and made of almost indestructible material. Collect the $20 and hope the customer buys another pair in like 50yrs? meh.

 

[Nick87]

Good question. On the counterpoint of that, it might not be the best business decision to make a reasonably priced product that lasts multiple generations. Like Crocs shoes - an ugly niche product that is easy to make and made of almost indestructible material. Collect the $20 and hope the customer buys another pair in like 50yrs? meh.

True, but if there brand came out with another line of products I'd probably be pretty loyal regardless of price point and purchase that as well. I understand that's probably not how you maximize profits though either. I just hate cheap chit.

 

[AvidIndoorsman]

I think company's are looking to diversify supply chains rather than move back to US. There is no way anyone pays $7 for a bubble wand.

What % of your car, computer, all of the containers your food comes in, hunting gear, etc etc. is made in china.

Well, I buy "Mystery Ranch"... where are the buckles made? The thread, the sewing machines themselves... the stools the guys at the shop sit on, the computer that they use to fulfill your order.

Mystery Ranch probably does a good a job as anyone as sourcing US so that's why I used them. Alpacka Raft is another company that really strives to have 100% US made, they are like 99% with a couple of small parts, like valves maybe, that I believe are made in Europe.

Point being, if we tried to stop trading with China, it would be a disaster for every sector.

 

[BigHornRam]

What % of your car, computer, all of the containers your food comes in, hunting gear, etc etc. is made in china.

Well, I buy "Mystery Ranch"... where are the buckles made? The thread, the sewing machines themselves... the stools the guys at the shop sit on, the computer that they use to fulfill your order.

Mystery Ranch probably does a good a job as anyone as sourcing US so that's why I used them. Alpacka Raft is another company that really strives to have 100% US made, they are like 99% with a couple of small parts, like valves maybe, that I believe are made in Europe.

Point being, it we tried to stop trading with China, it would be a disaster for every sector.

2022 is looking to be a disaster supply chain wise no matter what your views on trading with China is.

China's lockdowns could trigger a logistics snarl that may 'dwarf' 2020 and 2021

Products are not moving out of China at the moment and a "big problem looms" for the global economy, says IMA Asia's Richard Martin.

www.cnbc.com

Silver lining at least for grumpy old me and my 4th of July anxiety riddled lab Sara, chinese fireworks supply is looking to be a huge bust this year.

 

[SAJ-99]

What % of your car, computer, all of the containers your food comes in, hunting gear, etc etc. is made in china.

Well, I buy "Mystery Ranch"... where are the buckles made? The thread, the sewing machines themselves... the stools the guys at the shop sit on, the computer that they use to fulfill your order.

Mystery Ranch probably does a good a job as anyone as sourcing US so that's why I used them. Alpacka Raft is another company that really strives to have 100% US made, they are like 99% with a couple of small parts, like valves maybe, that I believe are made in Europe.

Point being, it we tried to stop trading with China, it would be a disaster for every sector.

I agree. No one will go untouched. Buy American as an economic concept is deeply flawed. Sounds great in the political arena though. I am sure that every company US or otherwise is looking at what is going on and saying "we need to diversify our supply chain!". I doubt they repatriate the production to the US. They shouldn't. They should be looking to build plants in other countries - central America and Africa should benefit if they can get their stuff together. A company that is really good at this is Nike. The same t-shirt can be made in multiple locations.

 

[Doublecluck]

I convinced my wife that we need to buy American, and since most guns are made in America… its worked with mixed success.

 

[hank4elk]

Love my All American Jeans & denim shirts.
No more chinwranglers.

 

[RobG]

I'm not so worried about cheap toys from China, but too much of the world revolves around Taiwan Semiconductor right now...

 

[RobG]

For those that can read the NY Times....

The Huge Endeavor to Produce a Tiny Microchip (Published 2022)

As the global chip shortage continues, we take an inside look at how semiconductors are fabricated.

www.nytimes.com

The Huge Endeavor to Produce a Tiny Microchip​

Some feature more than 50 billion tiny transistors that are 10,000 times smaller than the width of a human hair. They are made on gigantic, ultraclean factory room floors that can be seven stories tall and run the length of four football fields.

Microchips are in many ways the lifeblood of the modern economy. They power computers, smartphones, cars, appliances and scores of other electronics. But the world’s demand for them has surged since the pandemic, which also caused supply-chain disruptions, resulting in a global shortage.

That, in turn, is fueling inflation and raising alarms that the United States is becoming too dependent on chips made abroad. The United States accounts for only about 12 percent of global semiconductor manufacturing capacity; more than 90 percent of the most advanced chips come from Taiwan.