Executive Briefings

Despite Recalls, It's Still Worth It to Manufacture in China. Right?

From tainted pet food, seafood, and toothpaste to unraveling tires, exploding cell-phone batteries, and lead-painted children's toys, defective products from China are giving U.S. companies second thoughts about the benefits of China's low-cost manufacturing. But by and large, companies and the consultancies they hire to evaluate sourcing opportunities in China continue to say that the risk of recalls is worth taking. "If you manage and maintain quality in your sourcing operation and invest in it, the benefits are too large to ignore," says Bill Ferko, vice president and CFO of Genlyte Group, a Louisville-based manufacturer of lighting fixtures that sources components, sub-assemblies, and finished products from more than 20 factories in China.
Source: CFO, http://cfo.com

From tainted pet food, seafood, and toothpaste to unraveling tires, exploding cell-phone batteries, and lead-painted children's toys, defective products from China are giving U.S. companies second thoughts about the benefits of China's low-cost manufacturing. But by and large, companies and the consultancies they hire to evaluate sourcing opportunities in China continue to say that the risk of recalls is worth taking. "If you manage and maintain quality in your sourcing operation and invest in it, the benefits are too large to ignore," says Bill Ferko, vice president and CFO of Genlyte Group, a Louisville-based manufacturer of lighting fixtures that sources components, sub-assemblies, and finished products from more than 20 factories in China.
Source: CFO, http://cfo.com