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Sean Norris
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"Oftentimes it comes down to pricing on large quantities. Larger customers demanded much better pricing for their large orders, and the U.S. market was not able to accommodate the demand," he explained. "Manufacturing overseas is considerably less expensive."
Cheap labor wasn't the only advantage. According to Mel Ellis, president of Milwaukie, Oregon-based HumphreyLine, offshoring also allowed U.S. companies to significantly reduce the operational costs associated with running a factory.
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Sean Norris
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Sean Norris is editor-in-chief for Promo Marketing. Reach him at snorris@napco.com.
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