DJ Products, Inc.

The plight of the American automobile industry should serve as a cautionary tale for all U.S. manufacturers and businesses. To survive in today’s global marketplace, you must be flexible, embrace change, and constantly re-shape your business to meet future trends. Survival is as much about preparing your business for the future as it is about being competitive today.

Detroit’s problems are complex and have been exacerbated by a 15% sales drop as the economy has worsened, but at their core is the failure of U.S. auto executives to acknowledge the trend toward more fuel-efficient cars and to innovate. Rather than meeting the challenge posed by rising well-made, fuel-efficient Asian competition, Detroit continued business as usual, putting its efforts into advertising and Congressional lobbying to support bigger, better, fuel-guzzling cars. And until the rising cost of gas bit us in the wallet, the American public played along.

The sad thing is that back in 2000 Detroit did flirt with a program to push fuel-efficient vehicles but abandoned the effort as too expensive and unnecessary. It makes you wonder if the auto industry would be in cardiac arrest today if industry leaders had had the foresight to imagine the future and the courage to make the hard decisions necessary to prepare for it.

In the material handling industry, DJ Products faced this dilemma successfully. With the vision to spot new trends and the flexibility to act, DJ Products was one of the early responders to need for ergonomic material handling equipment. Well before the high price of repetitive stress injuries became a national cause, DJ Products saw a need to design material handling equipment that would reduce the potential for musculoskeletal injuries and improve the health and safety of workers.

DJ Products manufactures ergonomically-designed motorized carts and powered cart, equipment and vehicle movers that eliminate the pain and strain of manually pushing and pulling heavy carts and wheeled equipment. Our products are less costly, smaller, more maneuverable and more versatile than traditional material handling equipment used to move carts and equipment, such as forklift trucks, walkies and riding tugs. Forward-thinking business owners are revitalizing their operations and positioning themselves for the future by turning to ergonomic equipment to meet their material handling needs.

With an Obama administration expected to increase ergonomic standards and requirements in the next year, a proactive approach toward worker health and safety is a  smart business move. And it’s a decision that will have a positive impact on your bottom line. The cost of most ergonomic equipment purchases are recouped in the first year in savings on medical costs, insurance, workers’ compensation and lost work days. A move to ergonomic equipment also provides a substantial benefit in improved worker morale and increased productivity.

To find out how ergonomically-designed material handling equipment can help prepare your business to meet the challenges of the future, contact the ergonomic experts at DJ Products.

Insourcing is the new buzzword in U.S. manufacturing circles. U.S. economic woes are causing many manufacturers to replace outsourcing with insourcing, an unexpected boon for American workers. The declining value of the dollar against foreign currencies, skyrocketing transportation costs caused by high fuel prices, and decreasing export demand resulting from the global economic downturn are making it more cost efficient for U.S. manufacturers to produce their products at home.

The same economic forces that sent U.S. jobs overseas are now bringing them home. Manufacturing costs in Alabama are currently running 3% below those in China, causing companies like Exxel Outdoors, Inc., which makes sleeping bags for Wal-Mart and other customers, to execute an “about face” on its production priorities. Since the Wall Street tumble, the company has hired more workers, added new equipment and beefed-up production at its Haleyville, Alabama plant, while cutting production at a joint venture in Shanghai. In 2007, 60% of Exxel’s bags were made in Shanghai. This year, the company will make more product at home than abroad and expects to produce 90% of their product at their Alabama facility by 2010.

Exxel founder and CEO Harry Kazazian is predicting a 20% increase in company revenue this year to $42 million. He credits insourcing as a major factor in his company’s success during a tight economy. Since 2005, he has seen the yuan appreciate 17% against the dollar, pushing up Chinese wages, material costs and freight costs. Kazazian says moving production from Shanghai back to Exxel’s Alabama plant just made financial sense.

“Labor is China’s advantage and our weakest link,” he said. “But they can’t compete with me on my just-in-time” production cycle. Exxel can deliver a sleeping bag from its Alabama facility within three days where shipping from China can take two months.

According to government statistics, U.S. manufacturing is contracting at the fastest rate since 2001, the last time America dipped into a recession. As countries around the globe struggle with the growing financial crisis, there has been a marked decrease in export demand. Without demand for the prodigious output that originally spurred outsourcing over the last decade, producing goods in the U.S. is becoming increasingly cost efficient. Smart companies are re-evaluating their outsourcing policies and making the switch to insourcing.

It may be a bear market, but this is no time to hibernate. If you want to weather the pending economic winter, you can’t afford to crawl into a cave and wait for better times. This is a time when the old saying, “You snooze, you loose,” rings true. Competition gets more cutthroat when times are tough and only the smart survive. Everyone’s going to be reining in expenses to maximize their cash flow, and many will limp along with out-dated equipment or technology, afraid to make any capital investments until the economy eases up. Savvy businesspeople know this is faulty thinking. Even in a poor economy, certain capital investments not only make sense, but give you a critical edge over your competition.

What kinds of capital investments make sense? Industry experts say capital expenditures that give you both immediate and future value should get top priority.

• Equipment and technology that make and keep you competitive are essential, especially in a tough economy. You can’t afford to lag behind competitors or you’ll be left choking in their dust. As U.S. industry moves ever closer to integrated automation, you’ll need to embrace state-of-the-art technology and equipment to remain competitive.
• Equipment that decreases your fuel expenses will become increasingly valuable as oil production continues to drive world economy. Battery and electric-powered equipment not only produces immediate savings in fuel expenses, but decreases future dependence on fossil fuels. 
• Businesses shouldn’t overlook the powerful message that energy efficiency sends to customers: that you care about the environment and the planet we live on. As global warming heats up, more businesses will be choosing environmentally-friendly partners over energy-wasting ones.
• Ergonomic equipment that improves worker safety and significantly decreases medical, insurance and workers’ compensation expenses will gain even greater importance as healthcare costs rise. Both presidential candidates are furthering healthcare platforms that will force U.S. businesses to shoulder an even greater burden of our country’s healthcare costs. Equipment that decreases the direct and peripheral medical costs of worker injury will benefit your bottom line. 
• As the U.S. workforce shrinks, ergonomic equipment will play an important role in maintaining worker satisfaction as well as safety. As competition for workers increases, businesses will need to offer workers more tangible job benefits. Use of ergonomic equipment shows your workers you care about their health, safety and comfort on the job. And it has the added benefit of making your operation more efficient and more productive.
• Ergonomically-designed equipment that allows a single worker to accomplish a greater volume of work safely will also reap savings in a shrinking workforce. With presidential candidates promising to penalize businesses for taking jobs overseas, the ability to maximize productivity with a minimal American workforce will gain importance.