Reuters report suggests US manufacturers avoid China

By Freddie Pierce
Heres a scenario: your company invests in a new industrial copier, making your old one obsolete. Youre debating between throwing out the mammoth machin...

Here’s a scenario: your company invests in a new industrial copier, making your old one obsolete. You’re debating between throwing out the mammoth machine in your industrial park’s dumpster, or taking it apart with a baseball bat Office Space style.

You might not want to throw out that machine quite yet, however. While most companies will just throw out that old copier or fax machine, some American manufacturers are shipping second-hand machinery to China to make a quick profit out of nothing.

American manufacturers are looking for anything these days to gain an edge, and recycling old machines while turning a profit looks like a good place to start. China is snapping up used machinery to bolster its fast-growing economy, but some American manufacturers are refusing to sell machines to a country that could one day turn around and push them out of business.

According to a report on Reuters, Bob Chesebro’s Wisconsin sock factory refuses to sell his used machines to China, instead it's throwing his used equipment away as scrap metal in the dumpsters behind his plant.

“We have taken the view that if we sell these machines, we’re just going to put them in the hands of people who will compete against us,” Chesebro told Reuters.

So it all depends on where your ethics stand. While selling used machinery to China can make for a quick buck, doing so could eventually add competition to your market.

Share

Featured Articles

No going back on e-commerce - FedEx Express AMEA CEO

FedEx Express survey shows that SMEs and consumers in AMEA region feel there’s room for further growth in the already booming e-commerce market

Behavioural science 'key to procurement change' - Loseby

David Loseby of Suppeco tells the Supply Chain Digital show why behavioural science has a vital role to play in procurement digital transformation

Walgreens CPO Jim Townsend to speak at Procurement LIVE

Walgreens Boots Alliance Chief Procurement Officer Jim Townsend will be speaking at Procurement & Supply Chain LIVE London on 13 October

Managing risk 'crucial' - Gartner Supply Chain Symposium

Supply Chain Risk Management

Air cargo resilience is focus of World Cargo Symposium

Logistics

Sustainability measurements lacking, says EY survey

Sustainability