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by 김동섭 Feb 08. 2020

Domestics can beat China-made?


Excel Dryer sells $40 million worth of electric hand dryers each year, competing with imported products from China. It, however, used to import two important parts for its product, that are made in China, since there were no other manufactures that could beat the low prices. But it is partly changing because of the heightened tariff that the Trump administration charges on Chinese-made products.
Excel is willing to pay a little more for U.S.-made, and now it actually saves money buying the important parts in America. One reason is that the 25 percent tariff on Chinese-made parts make them costly, and the other is that it can reduce shipping costs buying domestically made parts.
This made the company change the design for the parts made in USA, but this made the quality of their products improved. Finally, the company succeeded not only in increasing their sales in the States, but also shipping their products to overseas markets.
Nonetheless, worldwide the hand dryer market remains very competitive. So they are doing a campaign “Time to Throw in the Towel.” More businesses use electric hand dryers.
China-made products are well known their high price-to-function rate, so they have prevailed the world. However, local manufacturers can offer better AS services and higher reliability of their products’ lifespan. So, we should think which way is really valuable for their costs

https://learningenglish.voanews.com/a/small-us-company-moves-to-make-all-american-hand-dryer/5202201.html

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