Made in the USA...

[Rob Ruffo]

Just a thought, 13 minutes x 8 workers = 1.75 worker-hours per epic.

Let's say he pays really well and Wages + Benefits + taxes + overhead came to $100 an hour. That's only an extra $175 per Epic to assemble in the US.

I would be more than happy to pay a 0.5% premium on cost to have it assembled in the US if it means more jobs. (Visa/Mastercard add 3% to the cost of everything.)

Me too.

 

[Jannard]

While 1.75 worker-hours per EPIC certainly doesn't represent the only labor associated with the program, we do pick up some additional savings by not having to place a team in a remote location, we save on shipping and duties... and we get incredibly important feedback from the manufacturing process that helps us design "smarter" for future products. Additionally, it is nice not to have to worry about keeping proprietary info, well... proprietary.

I think many companies just assume that everything can be made cheaper in Asia. There are many instances where that is true. The questions are "how much cheaper?" and "what else do you sacrifice in the process?"

I'd encourage other US companies to take a good look at manufacturing in the US. There is the small picture (corporate profits) as well as the big picture... the health of the nation.

Jim

 

[AnthonyFlores]

There is the small picture (corporate profits) as well as the big picture... the health of the nation.

Jim

Amen. This is one of the many reasons why I love Red.

 

[Gavin Greenwalt]

The one scary thing though is that even with these jobs staying domestic... imagine the 'deficit' that a product like RED puts in the jobs market due to automation and efficiency. How many people are employed over the next 2 years thanks to RED? Let's be generous and say 500 people. Maybe that's low, but it doesn't really matter.

If red sells 20k Epics in 2 years @ $35k = $700M

500 * 2 years / 700M = ~$700k in revenue per employee per year of production. I assume that's not unusual. It bodes poorly for our future if RED is an indication of future industry. Even if I grossly underestimated and it was 1000 employees per year needed to keep up production... that's $350k revenue per employee per year. It would be unsustainable. Manufacturing as a jobs source is getting less and less sustainable period. I'm reminded of Apple's data center (which is pretty standard) that is costing somewhere around $2B and employing about 50 people. Eeek! These are the "high-tech" jobs that we want for the future. The Capital Expenses vs Labor Expenses ratio is the silent torpedo of the world economy. So more jobs the better but... like I said Eeek!

 

[Gavin Greenwalt]

I think many companies just assume that everything can be made cheaper in Asia. There are many instances where that is true. The questions are "how much cheaper?" and "what else do you sacrifice in the process?"

I'd encourage other US companies to take a good look at manufacturing in the US. There is the small picture (corporate profits) as well as the big picture... the health of the nation.

Jim

I have a number of friends who work at Boeing. They definitely have their opinions on which is cheaper and better after the 787 Fiasco.

 

[Aaron Champion]

I seriously could not be more proud of RED, I would work for this company in a second. It feels so good to be proud of a company that stands for GREAT standards. I WISH this country (america) would act the way RED does. I'm so proud of red. I'm a proud red owner, and if they continue on this path... I WILL forever be a loyal buyer. Thanks for your standards. I shoot with standards, and wouldnt want my image to suffer, and I'm glad the camera I use comes from a spirit that feels the same way about its product and customer.

 

[Denizhan Nacar]

While 1.75 worker-hours per EPIC certainly doesn't represent the only labor associated with the program, we do pick up some additional savings by not having to place a team in a remote location, we save on shipping and duties... and we get incredibly important feedback from the manufacturing process that helps us design "smarter" for future products. Additionally, it is nice not to have to worry about keeping proprietary info, well... proprietary.

I think many companies just assume that everything can be made cheaper in Asia. There are many instances where that is true. The questions are "how much cheaper?" and "what else do you sacrifice in the process?"

I'd encourage other US companies to take a good look at manufacturing in the US. There is the small picture (corporate profits) as well as the big picture... the health of the nation.

Jim

This should be on the news to encourage people....inspire people and give them hope especially in these times...

 

[Luc Bouvrette]

There is the small picture (corporate profits) as well as the big picture... the health of the nation.

word.

 

[Jannard]

There are over 4000 people working at Oakley. Actually higher. That was the number 4 years ago. And that doesn't count suppliers we had in the US that were selling us stuff.

Jim

The one scary thing though is that even with these jobs staying domestic... imagine the 'deficit' that a product like RED puts in the jobs market due to automation and efficiency. How many people are employed over the next 2 years thanks to RED? Let's be generous and say 500 people. Maybe that's low, but it doesn't really matter.

If red sells 20k Epics in 2 years @ $35k = $700M

500 * 2 years / 700M = ~$700k in revenue per employee per year of production. I assume that's not unusual. It bodes poorly for our future if RED is an indication of future industry. Even if I grossly underestimated and it was 1000 employees per year needed to keep up production... that's $350k revenue per employee per year. It would be unsustainable. Manufacturing as a jobs source is getting less and less sustainable period. I'm reminded of Apple's data center (which is pretty standard) that is costing somewhere around $2B and employing about 50 people. Eeek! These are the "high-tech" jobs that we want for the future. The Capital Expenses vs Labor Expenses ratio is the silent torpedo of the world economy. So more jobs the better but... like I said Eeek!

 

[Chad Lancaster]

My dad pretty much runs robinson helicopters in torrance, one of the largest manufacturing companies in the California. I took a stroll the other day with him in the factory and it amazes & makes me proud that other than a few electronic instruments..everything is made in house. In southern California no less!

I'd encourage other US companies to take a good look at manufacturing in the US. There is the small picture (corporate profits) as well as the big picture... the health of the nation.

Jim

 

[Jannard]

Posts like this are dangerous. You make it sound like it is hopeless. If people believe this... then it is. Every single job matters. Every successful business matters no matter how big or small. It all adds up and will go in one direction or the other based on the attitude of the people. I choose to believe that it does matter and in a good way.

Jim

The one scary thing though is that even with these jobs staying domestic... imagine the 'deficit' that a product like RED puts in the jobs market due to automation and efficiency. How many people are employed over the next 2 years thanks to RED? Let's be generous and say 500 people. Maybe that's low, but it doesn't really matter.

If red sells 20k Epics in 2 years @ $35k = $700M

500 * 2 years / 700M = ~$700k in revenue per employee per year of production. I assume that's not unusual. It bodes poorly for our future if RED is an indication of future industry. Even if I grossly underestimated and it was 1000 employees per year needed to keep up production... that's $350k revenue per employee per year. It would be unsustainable. Manufacturing as a jobs source is getting less and less sustainable period. I'm reminded of Apple's data center (which is pretty standard) that is costing somewhere around $2B and employing about 50 people. Eeek! These are the "high-tech" jobs that we want for the future. The Capital Expenses vs Labor Expenses ratio is the silent torpedo of the world economy. So more jobs the better but... like I said Eeek!

 

[Gavin Greenwalt]

There are over 4000 people working at Oakley. Actually higher. That was the number 5 years ago. And that doesn't count suppliers we had in the US that were selling us stuff.

Jim

Last data I could find listed $225k in revenue per OO employee (of course as you say ignoring suppliers).

Median Income is $32k in the US. That's the sort of number that gets me fidgety when thinking about the future of western society. Do you think it's going to be a problem or with a more experienced (aka non-napkin ink numbers) perspective think that manufacturing is a sustainable employer to build an economy on?

I feel like we're getting too efficient to sustain a healthy economy. But there's no turning back from the march of progress either. More and more money is going into capital instead of labor by virtue of technological innovation. On the one hand it makes a camera like the RED affordable. On the other hand, I'm glad I'm not looking for a job in manufacturing.

Posts like this are dangerous. You make it sound like it is hopeless. If people believe this... then it is. Every single job matters. Every successful business matters no matter how big or small. It all adds up and will go in one direction or the other based on the attitude of the people. I choose to believe that it does matter and in a good way.

Jim

Not hopeless, just requiring a re-imagining of how an economy is structured. If we're incredibly efficient then maybe we don't need to work such grueling hours for example. I think we need to start shifting our focus towards maximizing the opportunity from this new reality.

Every job is important but if we're running up a deficit with each job then things will only get progressively worse staying on the same course of action. If our GDP goes up but our employment goes down we need to start using our creativity and leadership to plot a new course in this new reality that leads into a prosperous future. You can only ignore reality for so long. The sooner we start putting our minds to tackling this challenge (which I think will be the greatest challenge of my generation) the less painful the transition will be.

(BTW iPhone programmers would be an example of a very very capital light future path. Almost all of the expenses of software development are in labor. The future is in Intellectual Property as manufacturing becomes a largely labor-free industry.)

- Gavin

 

[Jon Thomasberg]

Reduser is on the world wide web - invented by a Brit.

I think many would disagree -- and no I'm not talking about Al Gore.

http://en.wikipedia.org/wiki/J._C._R._Licklider

 

[Jeff Coatney]

Technology allows each of us to become our own factory. We won't see the kinds of post war economic rewards our parents generation enjoyed until we cast aside the notion of dependency-employment as the anachronism that it is. In the future, each of us will be listed on the stock exchange and we will be able to invest in each other as individuals and soures of economic growth - Facebook is a prototype for such a marketplace.

 

[Jon Thomasberg]

Posts like this are dangerous. You make it sound like it is hopeless. If people believe this... then it is. Every single job matters. Every successful business matters no matter how big or small. It all adds up and will go in one direction or the other based on the attitude of the people. I choose to believe that it does matter and in a good way.

Jim

And this sir, is a key distinction why when the many are looking for the exits, the few innovators are just getting warmed up and will ultimately prove to be hindsight geniuses and rewarded accordingly. History has proven time and again that the heard is wrong at tops and bottoms of macro-cycles. Conversely, it is hard to see the whole picture for what it is when you are pixel-peeping.

Sincerely -- Thanks for the perspective, Jim!

 

[David Battistella]

There is, what I feel is another important point being missed.

Made in the USA is not "good enough". It had to be made "better" than it can be made anywhere else.

US manufacturing suffered when products made elsewhere (cars) were just simply made better.

Made in USA is great but this resurgence must also have high quality, ingenuity and competitive pricing attached or it will matter less.

.02 cents

**I also get the point about ethics when producing sensitive proprietary material abroad. Many have had this problem.


David

 

[Sergio Perez]

There is, what I feel is another important point being missed.

Made in the USA is not "good enough". It had to be made "better" than it can be made anywhere else.

US manufacturing suffered when products made elsewhere (cars) were just simply made better.

Made in USA is great but this resurgence must also have high quality, ingenuity and competitive pricing attached or it will matter less.

.02 cents

**I also get the point about ethics when producing sensitive proprietary material abroad. Many have had this problem.


David

Agreed. Quality, innovation, value- these are the key. "Made in Japan", "Made in Germany" are recognized because of this. "Made in USA" should be the same. Making a strange, but somehow significant comparison, Hollywood and the US film industry is also perceived, by the world audience, as this: "Quality entertainment" (personal tastes aside) . That's why its still the biggest grossing film industry worldwide. And movie tickets don't vary from an indian, french, chinese film vs an US film...

As long as it is innovative, has quality and its of good value for the consumer/costumer, a Company can and will survive. And nowadays, an extra factor is extremely important: personal touch and direct contact with the costumer- quick and responsive feedback. Red, in this aspect, is probably one of the best in the business.

 

[Subhadip Sen]

And movie tickets don't vary from an indian, french, chinese film vs an US film...

Actually they do. The average movie ticket for an Indian film is under $2. In addition, there are much more Indian films made every year attracting greater audience (tickets sold, last count was 4.5 billion in 2010) than Hollywood. They just don't make as much money (a fraction).

 

[Denizhan Nacar]

Posts like this are dangerous. You make it sound like it is hopeless. If people believe this... then it is. Every single job matters. Every successful business matters no matter how big or small. It all adds up and will go in one direction or the other based on the attitude of the people. I choose to believe that it does matter and in a good way.

Jim

There is so much to say about the economy and so many to blame on but that is not going to help anyone.This country lived many challenges in the history and this is one of them .People like Jannard should be inspiration for everyone .He is not only creating jobs ,he is creating and improving technology with his unique team.Gavin your calculations are completely wrong and time will prove that ...Trust me on that one...

 

[Denizhan Nacar]

Actually they do. The average movie ticket for an Indian film is under $2. In addition, there are much more Indian films made every year attracting greater audience (tickets sold) than Hollywood. They just don't make as much money (a fraction).

Istanbul,Turkey $10 almost same with California ....