12/3/2010 8:45:00 AM
NEWS BRIEFS
Lucas: Importers Fuel Domestic Manufacturing
Much is made of trade disputes between Western countries and Asia over imports. But importer Rob Lucas, president of Hong Kong-based Fidelis Fasteners, told National Industrial Fastener Show attendees that importers don’t hurt domestic manufacturers.
“We are a fuel source for everyone else (to grow),” he said during a presentation on importing from Asia.
Lucas and NIFS co-owner Mike McGuire are partners in Global Fastener Network, an importing service launched in August 2010. Fidelis was the featured cover advertiser in the September/October issue of McGuire’s trade publication, American Fastener Journal, and Lucas was given a prime speaking slot on the show floor during NIFS/West in Las Vegas.
As Lucas explained, importing is not as cheap as some assume — nor as easy.
“People don’t have realistic expectations on price,” he said.
In past five years people have Googled a part, found a factory in Asia and placed an order, he said. “That’s just not the way to do it.”
Before importing a product, a distributor needs to know if the vendor is qualified to produce the part. This process involves knowledge about the vendor’s history, as well its product mix and certifications.
And that’s just the start. Are you dealing with a manufacturer or subcontractor? Many companies may take your order, then have other firms actually make the fastener you want.
“That may be okay for you, but you have to look at the various risks,” Lucas advised.
Capacity is another “important” factor. “Do they have the raw material on hand for your specific demands?” It’s possible they do, but Lucas advised finding this out before placing an order.
Other factors include duties, which vary by country, as well as freight rates and practices.
There is also the product’s true cost — the labor, material, social accountability, etc. Before placing an order you want to know: “Am I buying from a factory that utilizes 10-year-olds to make this part?”
Negotiating price can be tricky as well. His advice: ask for “best” price to begin with so vendor doesn’t inflate the price anticipating you’ll ask for lower terms.
Get all that figured out, and you have shipping to deal with. Does the vendor offer this service, or will you have to arrange this on your own?
Your best chances of success?
“Communication is key,” Lucas stated. “The more you talk to them, the more information you’ll get and they better you’ll both feel.”
He recommended that buyers travel to overseas producers at least once a year.
“To really be successful, you’ve got to have a relationship. Relationships are king in Asia.”
While that tradition is rooted in the ancient cultures of Asia, other aspects of business are rapidly changing, he noted.
The biggest issue in Asia is how they’re producing parts, according to Lucas.
“They’re producing parts from demand instead of forecast. That’s a difficult dance.” ©2010 GlobalFastenerNews.com
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• 2010 NIFS/West By the Numbers
• U.S. Fastener Manufacturer Beats Imports with Technology
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