Willing to fight for your market share? The time is right for U.S. manufacturers to promote their quality, uniqueness and home-field advantage.

This summer's news has been filled with reports of poor quality products from China. The straw that broke this writer's back, and led me to write this column, was the recent Mattel recall of millions of Chinese-made toys, reportedly produced with lead paint. With permission, I have borrowed the "No China" Logo that speaks to the determination of Vermont wooden toy manufacturer, Maple Landmark Woodcraft, to make quality products right here in the United States and not to import from China.

I thought tainted dog food was bad enough, but in recent months we have read about many other recalls, due to quality or safety issues, of jewelry, clothing, food and other products that are perceived as threats to our health and safety and that of our children and grandchildren. So much has surfaced that I am determined to encourage you to use this situation to your advantage.

The Problem

International trade is not new and will never disappear--that's just a fact. The problem is that the majority of us have become so greedy that we will do almost anything to make an extra buck, or to increase the value of our company stock, or to find ways to buy more things with the money we have. As consumers, we are guilty of shopping for the lowest-cost products. Those of us in the wood products industry are no exception, and it should come as no surprise to us that Chinese manufacturers have embraced the profit motive--to a detriment.

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Once a furniture manufacturer decides to outsource overseas to a low-cost producer like China, competitors often are forced to do the same in order to maintain market share or just to survive. Depending on how much of the net manufacturing cost savings is retained by the company, and how much is passed on to the consumer--the company profits go up, or the consumer gets a great bargain, or both.

This has led to an escalating rate of offshoring in our industry today that has been too much, too fast. As a result, many companies have run into serious quality issues with the products being manufactured for them overseas. Some issues were apparent years ago and have been addressed, while new ones crop up daily for others.

Why would anyone be surprised? How would you manage production quality if all of your workers were farm workers until just a few weeks ago? Some of you are experiencing a challenge with a few of your employees in your plants today. How could you meet the expectations of your customers if most of your management did not understand the workers' Language and had to utilize translators to communicate?

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The answer is that you could not and would not produce an acceptable product under these conditions. So, to those contemplating offshoring for the first time, beware! For those heavily into importing, beware! I see this ineptitude repeated over and over again in the wood products industry overseas.

For example, there are those in our industry in Southeast Asia (as well as those who educate them in their technical schools) who say that lumber for producing secondary wood products cannot be dried Lower than 14% EMC. So, these manufacturers accept this and tell their U.S. customers that their lumber is dry when in fact it is not, according to our definition. A few weeks or months after the furniture sits in a U.S. retail store or in a heated and air conditioned home, that wood shrinks, cracks, splits and joints become loose. Fourteen percent may be an acceptable moisture content for furniture used in Malaysia--but not for use in the United States or Canada.

This is the way it is, and the way it will be, in every industry, in every developing country, while they try to obtain the manufacturing expertise, a highly skilled workforce, and the control systems necessary to produce and deliver an acceptable product. It takes time for a primitive shop to evolve into a factory.

I want to make another critical observation on the cause of this whole issue of poor quality entering the United States. According to the Associated Press, an official of the Chinese trade group, the China National Light Industry Council, said, "The quality of Chinese-made toys with American brands should be the responsibility of the American brand owner, not the Chinese manufacturer."

This statement should put all readers on notice because, ultimately, he is right. All product requirements must be communicated to suppliers (domestic or foreign), and their understanding of these requirements and their willingness to comply must be verified. Furthermore, their very ability to conform to these requirements must be determined by evaluating their materials, machinery, manpower, financial stability and sustainability. Skipping these basic steps always leads to sub-par performance or worse. Thus, the risks of off-shoring should be considered by those so inclined. Those who choose to produce at home should recognize that this represents an opportunity for them and offers one competitive advantage that they should leverage.

Your Unique Promise of Value

What about your company and what should it be doing?

I have stated this before and it has never been more relevant than today: "You must develop brand recognition and a demand for your product." Remember that the definition of brand is: "A Unique Promise of Value."

I know of no other wood products company that has grasped this idea and implemented it better than Maple Landmark Woodcraft. I encourage you to visit its Web site at www.maplelandmark.com and take a good look at its philosophy. When you review its products and warranty, you will know, without a doubt, what its "Unique Promise of Value" is.

It is not just about making wood products in the United States. It is about excellence. It is about creating a culture of continuous improvement. It is about lean manufacturing. It is about putting the customer first. It is about service. It is about integrity and caring.

Each reader has access to an almost unlimited source of information on how to become a supplier of choice in today's global environment. Every company needs to take inventory of its strengths and build upon them to deliver its own unique promise of value to the customer. It does not matter which segment of the wood products industry you are in. You must do a first-class job of leveraging your strengths and eliminating your weaknesses.

If you have competition that is importing products and undercutting your pricing structure, you need to examine the products closely. Are they really as good as yours? If so, move up a step or two in your quality [ever, innovate, drastically cut lead times, cut costs, do a better job of educating your employees, become a lean manufacturer and be super-quick to respond to the needs of your customers.

Window of Opportunity

I believe the events of this summer may serve to reverse the trend of "Made in China." However, bad performance from a Chinese company is not enough to cause consumers to switch to your products. I do not propose a negative campaign against the imports, but I do encourage you and your company to exploit your home field advantage. If you don't have one, get busy, look at your market and your core competency, and get to work.

Author's Note: I would like to thank my good friend Mike Rainville, president of Maple Landmark Woodcraft, for his permission to use the copyrighted "No China" logo and the photo of one of his American-made products.

Tom Dossenbach is the managing partner of Dossenbach Associates LLC, a Sanford, NC-based international consulting and research firm. Contact him at [phone] or e-mail [e-mail]. Visit his Web site at www.dossenbach.com. Past Management Matters columns are archived on www.iswonline.com.