Quite a few recalls have been grabbing the headlines in the past several weeks. Most of the recalls stemmed from items manufactured in China. Click here for some of the recalled items. Among the list of recalled items included toys manufactured by Mattel.
Toys coming out of China manufactured under the Mattel brand have a high level of lead paint which is harmful to the children playing with these toys. Two things come to mind instantly.
First, amid all of the danger attributed to these toys the old “bottom line” concept always comes into play. Wall Street is keeping an eye on the developments as the market responds to the news about the recalls. So even though these toys post a risk to some small child, somewhere there is some executive assessing the financial impact of this child’s risk. Click here for article.
Second, I wonder what this means for China. The large country is poised to be a giant in economic terms. Cheap labor means it is an attractive place for investment and business opportunities. But, does this cheap labor translate to a lower quality? And, I do wonder if there will be a shift to the old “Made in America” tag. American businesses are at a disadvantage in terms of labor cost. Businesses can manufacture products in China for a fraction of the cost here. But if these news items are indicative of the quality coming out of China, then that low labor cost may not be worth it. Made in America may be making a comeback
As a side note, I wonder why is it that there is not more investment in the Caribbean islands. I do believe that as Caribbean folk we can do quality work and relatively cheaply too. I understand why China is an attractive prospect, but the Caribbean can be a viable alternative too.
Just my thoughts.
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