Made in China??


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Posted by Dan Shockley on Sunday, July 20, 2008 at 20:25:08 :

In Reply to: Hub Update - these will be awesome!! posted by Dan Shockley on Sunday, July 20, 2008 at 03:03:28 :

Well, I suppose I will address this issue.

If you read back on the forum or read my website, you will learn that the reason that I originally started this business and brought the ARB locker to market was to give back to the Power Wagon Community. Today, it is no different. I am working on this project, spending a great deal of my free time just to make a good product available for these trucks - a product that has the quality, ruggedness and pride of workmanship befitting the truck, itself. Many of the people that are in this community are good friends, and this community has been a big part of my life for the last 10 or so years. I owe a great deal to you guys – and this is my attempt to give back.

Many of you know that I live and work in Shanghai, China. These projects require a lot of hands on attention and I am limited to work on a project such as this close to where I live. My job keeps me way too busy (18 hours per day, 6 days per week) to try to travel around the world to pursue these projects. Therefore, both of the prototype suppliers are within a couple hours drive of Shanghai. I understand that many of you would prefer that these parts were made in the USA, and I don’t disagree. But, those are my current limitations.

For those of you that may take exception to the fact that I am working in China for Caterpillar, Inc., one of the US’s strongest manufacturing companies, here are some thoughts. Caterpillar has been pursuing a Global Footprint for over 60 years. We now have manufacturing sites in approximately 50 countries around the world, including 6,000 employees in China. We are here primarily to serve demand for our machines in China or Greater Asia. And, this demand is stimulating our entire company. In the middle of a downturn in the US, Caterpillar has just announced a $1 Billion investment in factory renovation and new job creation in Central Illinois, as well as a commitment to build some new factories in other parts of the US. These investments to build more product in the US are not the result of US demand, but rather the result of a global strategy stretching back many decades. Caterpillar is not alone – there are many companies strengthened by their global footprint.

Another interesting point, is that I work for Cat Reman – Caterpillar’s remanufacturing business. We have been in China for about 2 years to educate and lobby the Chinese government to support the Remanufacturing industry – an industry that didn’t exist just a few years ago. We believe that the Remanufacturing industry is critical to China’s growth. By remanufacturing, it is possible to save 80% of the resources used in creating the original product (electricity, gas, raw materials, etc.). With China’s hunger for natural resources (75% of the world’s concrete, 60% of the world’s steel, being used mainly for construction), the proposition of Remanufacturing can have a big impact!! In fact, Remanufacturing along with other environmentally friendly initiatives can help take pressure off of commodities and commodity prices around the world.

Look at GM. GM as a whole is in awful shape. We don’t have to look too far to hear horror stories about the $1B/month that they are loosing, or the number of US jobs and/or tax dollars at risk if they can’t turn things around. But, did you know that GM is the #2 auto manufacturer in China (just behind VW). They have risen to the top of over 160 domestic auto brands to claim a top spot. And, the story is similar for them in Thailand (the #2 truck market behind the US) and other Asian countries. If it wasn’t for their forays into Asia and the thousands of jobs (and profit) that they have created here, they would have run out of cash and gone bankrupt over a year ago.

I am not trying to justify the fact that these hubs will be made in China. I don’t feel that is necessary. There are lots of people on this forum that know what I am trying to do, are confident that I will provide a product of the utmost quality, and will support me as they have done with other projects. But, I hope that most people can support me as I continue contribute to this community and for the next couple years, I will have to do that from my home in China. I was able to make it to the IA Rally this year, which was a huge feet in itself. And, I will continue to do my best to make events and keep active on this site.

After this project, I have a list of 5 projects that I will be coming in short order, and I think that you guys will be really excited about them, as well.

Best Regards,
Dan




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