The relentless pursuit of cheaper imports has exposed the US to risks from manufacturers willing to cut corners. The ‘cheaper is better’ mentality is backfiring as offshore partners find ways to shave costs from already low prices. This race to the bottom can lead to compromised quality and safety. While it’s easy to blame overseas factories, a broader perspective is necessary. All parties, including importers, wholesalers, retailers, and consumers, must ensure fair profit margins throughout the supply chain. This includes the factory workers, who are often underpaid and exposed to hazardous conditions.
David Chiu, chairman of the Hong Kong Small and Medium Enterprise Progress and Investment Association, urged importers to support manufacturers by avoiding demands for rock-bottom prices in the wake of recent recalls and tragedies related to quality control and safety standards. The Mattel toy scandal and the suicide of Cheung Shu-hung serve as stark reminders of the human cost of prioritizing cost over quality.
History offers a valuable lesson. After World War II, Japanese goods were synonymous with low quality and even hazardous materials. However, as Japan’s economy improved, so did its manufacturing standards. Today, Japan produces high-quality goods, albeit at a higher price. This reinforces the idea that you often get what you pay for. Focusing solely on price creates vulnerabilities that can lead to recalls, safety concerns, and ultimately, a loss of trust.