Thoughts on Manufacturing Overseas
 

In 2001, China and Taiwan together accounted for 85% of the $1billion of bicycles and parts imported into the US. 62% of imported bicycles and parts come from China.1
Serious concerns about humans rights and environmental responsibility in Asia are justifiable. “Respiratory diseases related to air pollution are the leading cause of death in China. Almost all of the nation’s rivers are considered polluted to some degree, and half of the population lacks access to clean water.“2 The decision makers at bike companies whose design and marketing is based in the US, but whose manufacturing is based in China, Taiwan and elsewhere can and will shape policies and practices, including the treatment of their workers and the environmental practices of their factories. The influence of foreign industry in Asian countries is very real.

Some companies think that you will confuse “designed and tested in USA” plus a little clever wording with “Made in the USA”. We don’t think that you are so gullible. If it doesn’t say “Made in the USA”, it wasn’t. This is not to say that you should only buy American made products, that would be unreasonable, nearly impossible and totally unnecessary. But look beyond the marketing and catalogs. Full knowledge of where and how a thing is made, by whom and under what conditions, that is the requirement of the responsible enlightened consumer.

For many Asian manufacturers, fair treatment of their workforce is a big deal. There are many Asian factories that treat their employees well. They work in clean, dignified environments with sophisticated equipment, they are well paid and cared for with good benefits and training. However, this is not the norm, nor is it common. Since the governments of most Asian countries have not yet developed far reaching worker’s rights laws or environmental pollution laws and meaningful enforcement (Japan is an obvious exception), the decision to be a decent and dignified employer is left up to the managers of the factories (Asian factories) and their customers (the bike companies). This makes it incredibly difficult to know whether you are buying a product made by a 12 year old boy working 70 hour weeks under a bare light bulb with no safety equipment or training, or by a 40 year old, trained professional working in a clean factory. Especially difficult if the company has a polished “Americanized” image. Most companies will go to some lengths to mislead the consumer into thinking that their product is of US manufacture. Watch carefully for “designed and tested in the USA” and “assembled in the USA”, that doesn’t mean it was made in a sweat shop, but it does mean that it wasn’t made in America. To further confuse the issue, a company could put a “made in the USA” decal on a bike frame that was made in China but painted in the US.

As potential consumers of those companies’ products, it becomes your responsibility to ask and be informed about the labor management and environmental practices involved in the manufacture of your bike part or frame. In many cases, the outlook is good. Some Asian manufacturing companies pay careful attention to health and work safety issues, training and wages. But there will always be those that will do anything to maximize a profit. Expressing your concerns about fair and responsible manufacturing to your favorite bike company is the best way to promote positive change in Asia.
The governments and trade unions of China, Taiwan and other emerging economies are competing among themselves -- and they are themselves partially responsible for the decline in wages and labor standards among their own workers. Countries bent on economic growth through export markets are pursuing policies that foster the rapid and unregulated building of foreign-invested factories. As a result these countries have gained millions of new jobs in their export industries.

However, more jobs have not necessarily lead to higher wages or rising labor standards for workers in these export industries. In many areas, wages have fallen, and working conditions have worsened as a result of intensified competition (to demonstrate lower labor and operational costs) in order to attract new factories that produce goods to sell in the US markets. Bicycle parts and frames are certainly among them.

Many US companies have been taking advantage of this discount labor pool and loose environmental and safety regulations, and in turn, passed the savings to you the consumer. They are also passing the buck, saying the US domestic labor pool’s output can not meet the ravenous demands of the American consumer. Or that they simply can’t compete in the bike market without taking advantage of the savings that Asian manufacturing offers them. It is a circular argument and it leads back to some simple questions: What is the true cost of making something with the economic, social and environmental costs included? Are consumers willing to face the facts about why that Taiwanese or Chinese part is so much cheaper than the US made one? If everybody is absolutely intent on making things as cheaply as possible, and the consumer buying the product doesn’t care about the economic, social and environmental costs of making things in poorly run factories, then we are doomed to continue this ridiculous charade.

1. www.ita.doc.gov/td/ocg/imp37511.htm: Top 24 US Import Sources for Bicycles and Parts.
2. Source: www.state.gov

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