At a time of ongoing recession and plunging employment rates, many US manufacturers are showcasing their patriotic side by keeping jobs in the USA. And Patton (News - Alert), a family owned communication equipment manufacturing house with global clientele, is one of these companies, continuing with their local operations and with success. Along with two other companies, Patton has recently made to the pages of the Washington Post for its contributions toward economy. The most widely circulated national daily has dedicated a byline to these companies that have decided to keep the jobs in the USA in the face of rising unemployment.
Washington Post's July 14 article about local manufacturing operations in the Washington D.C. vicinity featured three firms that have stuck to their decision of not outsourcing their jobs to overseas partners, despite some tough challenges.
“For these businesses, making things in America —in the Washington area, specifically—is still a viable model, even if it brings with it some tough challenges. Here’s a look at three firms that are keeping their manufacturing jobs here and why they’re finding that to be good business,” Journalist Sarah Halzack observed in the article entitled: Why ‘Made in the U.S.A.’ is still a viable model for some local manufacturers.
Maryland-based Patton is engaged in manufacturing wireless routers, Ethernet extenders, VoIP gateways, and other electronic devices. All of the company’s manufacturing take place at the company's Gaithersburg headquarters. 70 percent of its products are exported to overseas countries. So what stops the firm from outsourcing the labor intensive production process for an increased bottom-line? According to the firm’s president and chief executive, Robert R. Patton, part of this strategy is backed by the simple belief that it’s the patriotic thing to do:
“We want to keep the jobs here because we believe it’s the best thing for our country,” Patton commented in his interview with the Washington Post.
Of course there are some material benefits of carrying on with the manufacturing process locally. One of the most important advantages of on shoring strategy is: it lets the company tap the local, highly skilled workers with proficiency in mathematics and science for its complex manufacturing process involving high tech assembly requirements.
Then there is another reason that is making the company stay in Gaithersburg. With the kind of business it is engaged in, the company seemingly does not find it economically practical to set up many overseas factories. Its highly customized products have special labeling and packaging requirement, which can only be done locally. That level of customization is not something Mr. Patton believes can be easily managed at an overseas facility.
Patton’s strategy highlighted the economic viability of an on-shoring model. It is now to be seen, how many more firms involved in the labor intensive manufacturing can actually afford to join the league to showcase their “made in USA” sentiments.
In other news Patton announced that its new Ethernet in the first mile (EFM) digital subscriber line access multiplexer (DSLAM) rack-card device, ForeFront 3310RC (FF3310) is now available for order.
Edited by Peter Bernstein