The Offshore Effect; how is this affecting our community?

BY STEVEN KASZAB

Many firms have been suffering from a terminal virus for many decades. It is known as the “Offshore Effect,” a mind set, a process whereby a firm buys materials or products from offshore firms, having found these products to be appealingly cheaper than comparable domestically made ones.

Well, the pandemic has influenced this process, and along with corporate mismanagement, many firms are in financial peril (shed a tear).

Businesses small, medium and large have thrown in their lot with offshore sources, placing their trust in these foreign firms to supply cheaper materials and products. The offshore manufacturers are presently unable to produce items on time, having felt the effects of this pandemic, the loss of their employees and fragile supply chains too.

Further chaos reigns due to the shipping/logistic business sector, which are willing to ship items so long as their overly inflated charges are paid. Fewer shipping firms are in business, and the opportunity to fleece their customers in need has presented itself. What may have cost $3,500 now costs $15,000 to ship.

Mismanagement was mentioned. Well, what else can you call it when purchasing professionals threw their lot in with offshore firms, ignoring the actual possibility that these firms may not be able to fulfil their orders? Any purchasing professional knows they should have alternative sources for the products they require, and yet many firms relied upon offshore sources only. Many firms’ greed for cheaper items, placed their trust in foreign firms, and not those located in your neighbourhoods. Instead of employing your neighbours, these firms are often underpaid elsewhere.

Now, many firms are hoping to establish domestic supply chains, something they should have done long ago. Did you know that 41% of an American vehicle’s parts are made offshore? Is the milk that your children are drinking made in your neighbourhood? America sells more milk to Canada, than it imports from Canada. Do you know where items you use every day come from? What conditions the workers experience while making these items? How safe are these items? Most people seem to be more concerned about the price of a product than other factors. Price is seemingly king. For over fifty years many of the firms you are most familiar with have ignored domestic manufacturing and ordered their products from offshore sources. They invested not in your communities, employing your neighbours and children, but in firms often located in unfriendly, and competitive nations.

Our governments give these firms tax write offs, tax shelters, and corporate welfare cheques to establish offices in your neighbourhoods, but not real manufacturing plants (auto industry exception).

Corporations make donations to various political parties and politicians benefit. The middle class and working people of your neighbourhood do not benefit.

Support those firms that support you and your community. Buy domestically made items mostly because they are usually better made, you can see where they are made and investing domestically will build a future for us all.