I pulled this information from the Texas Poolsharks site. It was posted by Tim from www.paroleboards.com.
Tim wrote...
"This letter was sent to Transworld in response to an aritcle about Chinese decks and the overall effect of the Chinese taking American jobs ... (with their government subsidized wood manufacturing plants) ... by the leading Canadian manufacture of wood for skateboards.
Pay close attention to what happened the last few years to the furniture manufacturing industry on the East Coast ... and then remember where he says the money goes ...
If you care about skateboarding ... get involved."
Dear Mr. Harbaugh:
Thank you for your insights and ideas you submit in your columns in TransWorld SKATEboarding Business magazine. I always appreciate your hard line on doing what is best for the business in general.
I am the sales manager here at LaGrand Lumber & Veneer, Inc. and am very alarmed by the Asian influence on business here in the States in general and especially with the skateboard industry. We supply hard maple veneer from our three mills to skateboard-deck manufacturing plants throughout the U.S., Canada and sometimes abroad. In an average year we sell nearly (quantity withheld by author). Of this amount, (25 percent to 30 percent) is skateboard veneer, which we have been supplying for nearly 25 years.
As you are probably aware, the furniture industry has taken huge hits from imported components shipped in from China. Over a dozen plants have been closed forever in North Carolina because those companies now order their components and completed goods from China, idling over ten-thousand workers. I have clients in the component manufacturing business here in the States that have lost over 50 percent of their business to Pacific Rim countries.
This is trade they'll never get back.
Meanwhile, when you and I go to buy a new piece of furniture for our home, ...
... none of the cost-savings benefit reaped by the manufacturer is gained by us. ...
That same 3,000-dollar sofa made two years ago completely in the States still costs 3,000-dollar even though it cost far less to produce overseas.
...The manufacturer and the Chinese government are the winners.
While furniture imported from China, made from Chinese raw material may be acceptable in appearance and performance, my experience with skateboards is totally different. As was indicated in the article "Skateboard Science" (by , TransWorld SKATEboarding Business, April 2002) Chinese raw material (veneer) does not match hard maple, which has been the standard forever. The veneer, touted as "China maple" is in fact not maple. It is a species of birch. Tests performed at the Forest Research Laboratory in Madison, WI prove that this species has approximately the same physical characteristics as soft maple, a species long ago abandoned by the skateboard industry.
I have two customers who bought China maple veneer from a sales rep here thinking they were buying North American hard maple. That rep should be tarred and feathered (or worse), but that's another topic. Anyway, they manufactured the decks and sent them out through their normal distribution channels. In short order, literally thousands of decks were returned in various states of ruin and decay. Decks were split, broken, and mushy. All due to the quality of veneer used to manufacture them. One customer nearly lost his largest account because of the poor quality. He was able to salvage the account when we provided him with the necessary veneer to quickly replace the order.
My fear is that as a raw-material supplier I should have seen this coming long ago, and it may be too late to react. I believe that if we don't do something soon, cheap imported decks will become the standard. Once riders become accustomed to a lower standard, they will no longer know the difference and imported decks will be acceptable. I know this may be insulting to the current rider who can tell the difference, but my concern is perpetuating the business, and I'm afraid the young, new rider won't know and won't be told. You should know that what really convinced me to write to you is an experience I had yesterday with an export agent. He called requesting a quote on container loads of skate veneer going to China. Upon quoting him our standard prices, he laughed and told me that if I wanted to do business with China, I needed to learn how to lower my prices. We price veneer based on the cost to produce plus a reasonable profit margin. I asked him what benefit I would gain from hurting my loyal U.S. customers by selling overseas for less and losing my profit margin. He laughed and responded that I'd have my foot in the door when the Chinese totally take over U.S. skateboard manufacturing.
There is no doubt that manufacturing is down due to the economy. However, there is also pressure coming from beyond the economy, and if we don't react now while we are slow and have the time to react, we will all be left in the dust when the next surge (and I'm confident there'll be one) comes.
I am venting this on you because you are a connected person who people seem to listen to. We do as much as we can to promote the industry, including attending shows and working on promos with our customers. Try as I may to get the message out that quality and integrity starts with the raw material, it seems to fall on deaf ears.
Is the skateboard-manufacturing business preparing to roll over and allow imported decks become the standard? Should I start looking for new markets to replace our skateboard-veneer sales? Should I "learn how to lower my prices to China"?
Please advise.
Best regards,
Dale Rosema, Sales Manager, LaGrand Lumber & Veneer, Inc.