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Make kites in the USA?

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rtz
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Re: Make kites in the USA?

Postby rtz » Tue Mar 25, 2014 7:32 am

I don't mind where the kites are built. As long as the price is low. And that used to be the case. Not so much any more. Cost of shipping? Rising labor costs? Currency exchange rates?

The latest trend I've seen and noticed; particularly in manufacturing, automotive, and California based industries is a mass movement to Mexico. Every time I look into a new product; it's mentioned in the product video about the "new factory in Mexico". That new RAM(Fiat?) kite van for example at 4:15



Reese Towing? Whole video about moving to Mexico:


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Re: Make kites in the USA?

Postby Westozzy » Tue Mar 25, 2014 11:54 am

We had a local board producer that eventually had to shut down due too much price pressure. You guys at least have economies of scale in your favour.

We have exactly the same problem, all manufacturing is going offshore. Ford, Mitsubishi, Toyota all essentially gone!

But you did invent this globalised capitalistic market and we all followed you down the rabbit hole!!

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Re: Make kites in the USA?

Postby matth » Tue Mar 25, 2014 12:35 pm

saildawg wrote:Of course kites can be made in the US of A, and a handsome profit could be made. The question is: What is a reasonable profit? Manufacturers making 500% profit? Retailers making 100% on their investment? Unfortunately corporate, even the small kite corporations, idea is to maximize, maximize, maximize. When you see a new, still in the ziplock, 1 year old kite being sold by a retailer at 40% discount you can rest assured a reasonable (in my mind) profit is still being earned. They are not selling the kite at a loss. As competition increases one would hope pricing would become more reasonable. There is a boom in the kite industry and I think a made in North America kite as well as harnesses, has potential.
I can tell you as a long time retailer we very often move merchandise at no profit or even a loss.
When a product is not moving you just want to get as much money back as possible,even at a loss ,and move on. Big ticket items like kites usually have much less mark up and work on tighter margins.

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Re: Make kites in the USA?

Postby Nico » Tue Mar 25, 2014 1:55 pm

so what about the denim kites ??? : )
N

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Re: Make kites in the USA?

Postby TomW » Tue Mar 25, 2014 7:33 pm

Come on people. Wake up and smell the gas( smog of China.).
You're dreaming.

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Dimitri M
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Re: Make kites in the USA?

Postby Dimitri M » Tue Mar 25, 2014 9:30 pm

Guys there is a reason why companies build their kites overseas instead of the USA.
I wish we could make our EPIC kites in the USA but again, you have to understand that labor is still very expensive compare to these other countries such as China, Thailand, India, Vietnam and so on... This is the reason why most of the kite companies are made in these countries.
And yes, you do have few factories that make sails for sail boats in the USA, but again these boats and sails come out to be very expensive if you decide to buy one. I will be very happy to start production in the USA but again will you be willing to pay more for a kite then what you are paying now!!!. Because making a kite overseas comes to be around $450 to $550 our cost for a 12 meter kite. Doing the same kite here in the USA because of high cost in labor, will come to be around $850 to $950 our cost. Then we have to add a mark up of 35 to 45 % for the dealers and then the dealers will have to put their mark up of 40% to 50% on the kite. So if you do the math, the kite comes out to be very expensive compare to what companies sells their kites now.
People are complaining paying over $1000 for a new 12 meter kite that is made overseas. Can you imagine if they were made here in the USA!!!
Any way, China and few of these countries are increasing their labor cost plus the materials are going up, so maybe will have to start looking into making our kites in other countries such as Mexico, Brazil, Costa Rica, and so on.

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Re: Make kites in the USA?

Postby sijandy » Wed Mar 26, 2014 5:09 pm

Dimitri M wrote:Any way, China and few of these countries are increasing their labor cost plus the materials are going up, so maybe will have to start looking into making our kites in other countries such as Mexico, Brazil, Costa Rica, and so on.
Bloody cheek of it... is a bowl of rice not enough anymore?! Next thing you know they'll be wanting healthcare and pensions etc... makes me sick! Do they not realise that if kite prices get any higher i may have to reduce my quiver from 4 down to 3 kites!!!

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ryanroberts1983
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Re: Make kites in the USA?

Postby ryanroberts1983 » Thu Mar 27, 2014 7:47 pm

toyletbowl wrote:In my opinion, it would have to start with someone really small or really huge to make this work.

Small and custom and would have to ask for a premium and if the demand is there, expand and get better efficiencies with volume. They would have to prove the concept and then expand.

One of the problems is the current supply chain. Most of the raw materials are also most likely made in China, so the US supply chain isn't efficiently available.

So it would take a huge effort to get the economies of scale to be competitive.

Bob
www.kiteridersllc.com

Not true. We thought the same thing but after a bit of research found that it is very doable. Most materials are available, and all supply chains do exist. The biggest issue in the USA is the mindset that everything can be done under one roof. Most of my experience in China has been centralized in factories that do everything including final assembly and shipping. This flat out does not exist in the USA. Here is a perfect example of a product that I co-founded and is made entirely in the USA. Try finding someone in the USA to do PCB work, package printing, final assembly and logistics to 10+ distribution facilities. It. Does. Not. Exist.

http://shutterbugremote.com

Cost difference between USA and China for production? less than $2 - even in super high volumes. Going forward, most everything I do will be in the USA and as local as possible - exactly what we have done with ShutterBug. Everything brewed right in Charleston SC.

Same goes for my wind meter http://weatherflow.com/windmeter everything was designed, developed and tested locally in Charleston SC with close friends, and some kiteboarders (Joe Ruscito - our account manager). All design work was done by my good friend Nate at http://distilunion.com, all 3d printing was done locally, all hardware / electrical engineering done locally and in house with our resident EE genius(s).

Manufacturing in the USA is very real, it is very competitive with Chinas pricing and requires the same amount of work, sourcing, final assembly, and regardless of where you manufacture if you are a US based business all of the economics land in US bank accounts. Especially on these smaller projects where we are capable of sourcing locally.

There is a huge movement for this in the USA right now, and plenty of room to compete - but plan on doing final assembly and QC in your house with friends and some beer :)

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Re: Make kites in the USA?

Postby matth » Thu Mar 27, 2014 8:28 pm

ryanroberts1983 wrote:
toyletbowl wrote:In my opinion, it would have to start with someone really small or really huge to make this work.

Small and custom and would have to ask for a premium and if the demand is there, expand and get better efficiencies with volume. They would have to prove the concept and then expand.

One of the problems is the current supply chain. Most of the raw materials are also most likely made in China, so the US supply chain isn't efficiently available.

So it would take a huge effort to get the economies of scale to be competitive.

Bob
www.kiteridersllc.com

Not true. We thought the same thing but after a bit of research found that it is very doable. Most materials are available, and all supply chains do exist. The biggest issue in the USA is the mindset that everything can be done under one roof. Most of my experience in China has been centralized in factories that do everything including final assembly and shipping. This flat out does not exist in the USA. Here is a perfect example of a product that I co-founded and is made entirely in the USA. Try finding someone in the USA to do PCB work, package printing, final assembly and logistics to 10+ distribution facilities. It. Does. Not. Exist.

http://shutterbugremote.com

Cost difference between USA and China for production? less than $2 - even in super high volumes. Going forward, most everything I do will be in the USA and as local as possible - exactly what we have done with ShutterBug. Everything brewed right in Charleston SC.

Same goes for my wind meter http://weatherflow.com/windmeter everything was designed, developed and tested locally in Charleston SC with close friends, and some kiteboarders (Joe Ruscito - our account manager). All design work was done by my good friend Nate at http://distilunion.com, all 3d printing was done locally, all hardware / electrical engineering done locally and in house with our resident EE genius(s).

Manufacturing in the USA is very real, it is very competitive with Chinas pricing and requires the same amount of work, sourcing, final assembly, and regardless of where you manufacture if you are a US based business all of the economics land in US bank accounts. Especially on these smaller projects where we are capable of sourcing locally.

There is a huge movement for this in the USA right now, and plenty of room to compete - but plan on doing final assembly and QC in your house with friends and some beer :)
For packaging , assembly and other repetitive task there is a cheap alternative here in the US. Having people with learning and physical disabilities do the work. Some of these groups really work well and it can be a win, win situation

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Re: Make kites in the USA?

Postby james » Thu Mar 27, 2014 8:36 pm

So learning difficulties or disabled = cheap source of labour?

Your fucking sick!

You think they should be great full to have a job so accept being paid less?

Why is their time worth less than anyone else's?

I can't wait to see your fucking apauling reasoning behind your idea...


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