Made in USA

Discussion in 'Off-Topic' started by edgetrigger, May 27, 2011.

  1. edgetrigger

    Thread Starter Member

    Dec 19, 2010
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    I want to manufacture (absolutely made in USA) and market Induction Stoves in USA. Will anyone give some insight about the acceptance of this product and will it be suicidal to attempt to manufacture in America.

    Which city/state in USA is ideal(relatively cheap labour & rental) to setup a manufacturing plant for this kind of a product?
     
  2. magnet18

    Senior Member

    Dec 22, 2010
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    sadly, the cheapest would be as far south as possible, so that you can hire illegal aliens. other than that, there are plenty of places where factories and businesses have closed up.

    Sounds like unless you can find a factory with some of the stuff you need already in it, you'll have a lot of overhead.

    You might consider using the magic of the interned and opening an online store and see how that goes, making them on a one-by-one basis, at least at first.
     
  3. edgetrigger

    Thread Starter Member

    Dec 19, 2010
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    Thanks for your inputs. Hiring illegal immigrants is not an option it defeats the very purpose of my venture. I am planning to increase the level of automation to bring down the cost of manufacturing.

    I was contemplating an online store as you suggested!
     
  4. loosewire

    AAC Fanatic!

    Apr 25, 2008
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    The Fla Governor said if he was elected he would bring job to Florida.
    Tell us more about the market for your stoves.The state has groups
    in charge of bringing jobs.Tell us more so we can tell you the direction
    to go.They will want to know about the product,the market and finances.
    This is a good subject,lets talk.
     
  5. edgetrigger

    Thread Starter Member

    Dec 19, 2010
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    The stove works on the principle of electromagnetic induction and heat is induced directly in the vessel, hence extremely efficient. Unlike the gas stove which works at 55% efficiency the induction stove works at 90% plus efficiency. Heating is fast and cost of cooking is almost half the cost of cooking on gas hobs.


    Outline of what goes in the product:

    The enclosures for the product is plastic
    The cook top is ceramic or glass
    Rest is all electronics built around IGBT

    I am planning to invest around 1.5 million dollars to start with.
     
    Last edited: May 27, 2011
  6. tom66

    Senior Member

    May 9, 2009
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    Sounds nice...

    But isn't an electric heater 99.8% efficient or something like that? Very little energy is wasted; an efficient conversion from electricity to heat produces a bit of light and sound, but not much.

    Regardless, I have come across the same problem with getting my product - Super OSD - made in the USA. The product is low cost, selling for $90, and that doesn't give me much margin for manufacture. The main problem is that there are no companies who will do it for a low price, even though about 90% of it is machine manufactured. I would like to support the US economy, or the UK economy, or even an EU economy (I am considering getting them made in Bulgaria or Italy), but China... sorry to say it, but China is too aggressive for me, and they worry me. And yet, that is hypocritical of me, because I am typing this on a Chinese made Lenovo laptop, my LCD monitor and TV are made in China, as are almost all of my parts in my computer. And they all work perfectly fine! Not a problem; the stereotype of cheap Chinese goods breaking is really quite rare. But if this continues, economies that once relied on manufacturing could be left in the dust. And electronics design - engineering jobs - are now being outsourced. What can you do...
     
  7. edgetrigger

    Thread Starter Member

    Dec 19, 2010
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    Electric stove(hot plate) work at 70% efficiency, Heating element is 99.9% efficient but the electric stove looses efficiency due to conduction and radiation loss between the vessel and the heating element.


    In addition to the job loss creative ability of design engineers will also go down the drain. Shop floor is the breeding ground for R&D and one cant afford to loose it.

    Greed of few who promulgated globalisation have no concern for any of this other than their profits.
     
  8. strantor

    AAC Fanatic!

    Oct 3, 2010
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    If you want it 100% made in USA, down to the solder, then you will probably need to manufacture all the components yourself as well. good luck find components made in the USA.

    As for the location, manufacturing usually happens in industrial areas - closer to the supplier, less cost; and if the supplier is closer to the ocean (where all the components and materials come from, overseas) then it will be cheaper still. So you want to look for an industrial area near a sea port. Houston fits the bill, but I'm biased.
     
  9. retched

    AAC Fanatic!

    Dec 5, 2009
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    So does Baltimore. ;)
     
  10. strantor

    AAC Fanatic!

    Oct 3, 2010
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    What are the taxes like in Baltimore? My general observation has been that the farther north you go, the higher the taxes go. Texas does not have a state income tax, and (speaking generally once again) I believe Texas is one of the friendlier states for small business; tax breaks, incentives, etc. I know nothing of Baltimore and very little about small business in either place, with little or no interest to research it. These are good things to think about though.
     
  11. loosewire

    AAC Fanatic!

    Apr 25, 2008
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    Baltimore was at one a hub for business,every truck driver
    I ask where they going,it was Baltimore.Don't about now
    it is near Wash. D.C. maybe a lot of government stuff.
    That where all the think tanks are,maybe some of it rubbed
    off on Retched his smarts had to come from some where.
     
  12. edgetrigger

    Thread Starter Member

    Dec 19, 2010
    133
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    Thank you! Texas would be the right place for my plant. Even the tax consultant suggested to consider Texas. Further i found out that rentals are reasonably priced.

    I am scouting for info related to average salary of factory workers in Texas! Planning to visit some factories in Texas to get an idea about their functioning.
     
  13. strantor

    AAC Fanatic!

    Oct 3, 2010
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    Sweet!

    Bring jobs to Texas, please!

    I would invite you to visit my factory, but it's not really my factory. I could look into what it takes to get someone permission for a tour if you are interested.

    BTW we only make wire & cable - very different from induction stoves I would assume.
     
  14. edgetrigger

    Thread Starter Member

    Dec 19, 2010
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    Very kind of you! Thank You!

    I just wanted to know how much would be the average salary of a worker with no special skills.

    Operations in my factory would be : stuffing components on to the PCB, operating smt machines/ wave soldering machines, solder inspection, testing boards using test bences and assembly of the unit using electric screw drivers.

    If i am hiring people to jobs as cited above what would be the average salary, a rough figure would be of great help!
     
  15. Wendy

    Moderator

    Mar 24, 2008
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    No skills, minimum wage. Think McDonalds. $8/hr

    Some skills, a couple of bucks more.

    Expert skills, no college, $12-$20

    Expert skills, some college, $16-$24

    Expert skills, college degrees $20-whatever the market will bare

    This is an opinion, not factual.
     
    Last edited: Jun 29, 2011
  16. edgetrigger

    Thread Starter Member

    Dec 19, 2010
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    Nicely tabulated!:)

    I want to hire large chunk of people in Expert Skills, no college category. So as per your opinion quote $3500 a month would be average wage per month. This is almost 17.5 times what i am paying for my worker in India.
     
  17. Wendy

    Moderator

    Mar 24, 2008
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    You want expert, you get what you pay for. Are you really happy with the results in India?

    IMO American workers are among the best in the world. You pay more, you get more.

    Your math is also off, I calculated $2K/mo at starting wages, or $24K/year. This is Poverty level wages, a single person would have trouble living in any city in Texas on that, it could be done, but they would probably walk to work.

    At $39K/year you can live comfortably, but you are not rich by USA standards.

    Texas doesn't have the cheapest cost of living in the USA, but it is far from the most expensive. There are cheaper states, but the average education level drops also. You can find qualified people in every state.

    I notice you haven't mentioned the requirements, electronics, machining, welding, what? I know a little about induction furnaces, but not much.

    American workers will also put up with crap a lot of countries will find intolerable, but they do have some rights. It sounds like a small shop, 20 people or less.
     
  18. strantor

    AAC Fanatic!

    Oct 3, 2010
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    Other thinks to keep in mind when starting a business here:

    you have to provide health insurance for your workers. This can be very costly for a small business owner; maybe even your highest expendature.

    There are other companies out there who can provide inticing employee benefits packages, such as 401K retirement matching, stock options, etc. If you don't plan to offer these things, be prepared to pay your workers a little more than the norm to keep them around. They may take your offer with no benefits, but they only until they can find something better.

    There are volumes upon volumes of regulations you will need to comply with around every corner. every aspect of your business will be governed by some [likely several hundred page] document that you will need to follow to-the-tee or risk being fined or sued some day. You may consider hiring a lawyer and/or consultant to help you get started. In addition to the required regulations, most companies pursue some kind of accreditation, like ISO. This will be a set of further regulations which you will voluntarily apply to your business to obtain accreditation. Once you get the accreditation, this lets the world know (or should) that your process is on par with the big guys and your product can be anticipaed to be good quality.
     
  19. loosewire

    AAC Fanatic!

    Apr 25, 2008
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    Small business Administration, Fed-x is a sucess story.When you have a
    good thing there is money to cover all expenses.Good things are hard to
    find today.
     
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