We export the work,
not the worker!
The great advantage for the North American participant is proximity.
We can ship an order door-to-door via FTL to arrive within a week. One can take an early flight from USA to Mexico, hold a meeting, have lunch, and return to sleep in your own bed!
Try that round-trip to China!
- The USA was the World Industrial Power during much of the 20th century;
- Following World War II, within the reconstruction stage, the USA empowered Japan which was then a source of low-cost reliable labor; (>USD$.05/hour)
- Louis Marx “Toy King” was quoted in 1945 as saying that “…the Japanese are clever people; if we provide them with the technology and wherewithal, they can produce.”;
- Marx Toys pioneered toy production in Japan 1945;
- The rule of Supply vs. Demand dominates;
- Japan prospered, within a decade, the labor shortage dried up the “cheap labor”; the new industrialists became financiers and investors;
- As rates increased with Japan’s prosperity, in 1952, Louis Marx; Marx Toys pioneered toy manufacturing (Elm Tool) in Hong Kong;
Greater labor opportunities in Mexico allow the Mexicans to remain gainfully employed within Mexico; they will not need to cross the border in search of employment.
If immigrants are not infiltrating the US job market, the U S Citizens have the job opportunities that they are losing to “cheap foreign labor”; (It remains to be seen how many of the complaining public actually accept honest work.)
- With increased education and employment, corruption tends to diminish;
- with productive employment, violence tends to diminish;
- education (academic, professional plus specific job training), speaks for itself.
Under Project Mexico we will provide the employment, education and efficiency.
American Classic Toy, Inc. along with our Mexican Counterpart “AFABMEX” (Asociación de Fabricantes Mexicanas para Fomentar la Exportación) have formed an entity to manufacture the product in Mexico for global consumption; with both:
- Proprietary Product through ACT and the best toy companies in Mexico; and
- Contract Manufacturing under the leadership of Engineer Alfredo Radovich uniting the contract manufacturing specialist companies in each field.
The entity is composed of existing toy factories with their existing equipment, machinery, buildings, staff, employees, capital and resources. As business develops, it will generate new members and investment as well as the existing contract manufacturers. Demand will create new facilities. We start in the Toy Industry, continue with others such as garment, shoes etc.
The timing is right because:
The labor and cost of doing business in China has increased and is increasing rapidly;
The public is weary of Made in China and would prefer Made in North America;
The Mexican economy will be helped by increased work and prosperity;
The timing is right to shift the production into Mexico!
International business and tariff trends seem to favor Mexico over China.
Advantages for USA
Advantages for Mexico
HORIZONTAL EXPANSION and Global Market
Being in operation in the Toy Industry, it is only natural that we expand to most any other industry. The Shoes Industry is a good candidate. The entire state of Guanajuato manufactures shoes for domestic consumption.
It is only a matter of affiliating with a U.S. fashion marketing company and forming the Mexican association to contract the domestic shoe industry to export. Naturally, once in the fashion industry, it leads from shoes to apparel. Furniture, food, on and on.
The same Mexican domestic organization works with the government(s) and logistics etc. Simultaneously, we will expand our market from North America, to Europe, Latin America, Middle East, to the Global Market. (Sing: “High hopes, we’ve got, high hopes…”)