Opening a US plant to make candles

A Wall Street Journal article (May 5, 2011) describes the travails of Chesapeake Bay Candle as they tried to open a plant in the US. Candles face a 108.3 % inport duty and thus only 20 % of their volume is imported. In addition, the increased need for next day shipment to retailers demands local production to order.  But Chesapeake Bay Candle claims that their efforts to open a US plant have taken more than 13 months and over 30 % of the costs have been related to “code compliance”, the result of a set of overlapping rules that have not been streamlined.  Should there be an effort to streamline rules and decrease compliance costs – and if so who should lead such efforts ? Should local economic development officials offer a “concierge” service to attract manufacturing jobs ? Which other industries do you think expect to have such “onshoring” opportunities ?

Advertisements

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s