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Element Electronics President Michael O'Shaugnessy on building flat screen TVs in the U.S.
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In the meantime did you know no TVs have been made in the US since 1990 -- that's convenient left the business while our next guest trying to change that by building large.
Flat screen TVs in Michigan and creating -- hundred new jobs but bush honesty is president of elements electronic.
The rate to -- Aren't so how is it back to Michigan made TVs are going to cost less than those made in China and shipped over here.
Actually they're probably not going to cost less the key is that they're gonna cost the same we'll be able to produce televisions in Michigan.
And put them up for sale through our customers and then ultimately to -- to the consumer at the same price that we would have we -- -- from China.
So then if it's at the same price why change it what's your motivation for bringing this here in the US.
Well for the long for us for the long term the trends seem to indicate that over time we will be able to do it for a lower price over time.
With the increased costs and fuel with labor cost going up in China and other factors we believe that we can have a more stable.
Plan here and make more money over time and lower the costs.
-- -- if you're using parts in China and then assembling everything at the plant in suburban Detroit from what I understand.
What is your forecast then for setting up your own supply chain and then also part -- -- the question is -- you -- expect prices to rise.
In terms of exporting that -- TV's from China.
If so phase one of the plan is that we will import the parts from Asia because as of today there really are no suppliers to the TV business in the United States.
But over time phase two of the plan which we would call to -- 2013 and beyond.
We will Begin to attract suppliers to our business and with that we will hope we gotta get the parts and components especially the big parts and more expensive components.
Produced here locally by by domestic suppliers.
You know if you look at the manufacturing picture in the US it's actually improving -- manufacturing as measured by the at ISM is it was -- management.
-- showing improvement for like the last 29 months or something even at today's Philly Fed index I believe was a little weaker than expectations my point is we're seeing improvement but it's still historically -- -- What needs to be done big picture to improve the manufacturing sector in the US.
All that's probably question for smarter people than now but I do think -- Well I'll give it a shot look I believe that the certainly there are long term trends that are happening.
And businesses that are looking closely at their costs will see that they can Begin to do some things in the United States to bring these jobs back.
And of course the right relationship between government and business might be able to help that way -- businesses could be incentivized to come back the United States and do some of their.
Assembly work here so.
I think the long term economic trends around labor and fuel prices and duties those three things in particular could bring more and more jobs back to the United States.
Michael that's a great answer appreciate it.
Wanna know how you're doing.
We all know what viewers -- we're CEO of Polaroid.
It was -- by Tom Patterson serving fifteen years in prison for running a billion dollar Ponzi -- you were charged with doing absolutely no wrongdoing but trees have that.
Relationship if if that is.
At all hurt your business.
Actually no it hasn't our relationships with our customers are good.
And our business well we did suffer as a result in 2008 and early 2009 -- a result circuit city's bankruptcy they were our largest customer at the time.
Element and speaking to element.
That that hurt our business and of course there's Great Recession that we're all living through so.
You know we we as business we got Smart we we we we shut down anything that wasn't making money.
And as we relied on our customer relationships and our factor relationships the -- through it and you know -- agreeing passion front of us now.
OK thanks so much Michael Shaughnessy elements electronics thanks again and good for him.
