DESA began bringing back a significant percentage of its manufacturing from China last year, because of changing times in the world economy.
Factors such as the continuing rise in the cost of oil, the weakening of the U.S. dollar compared with foreign currency and the recent rise in wages for Chinese workers is making manufacturing in China no longer as economical as it once was, according to the company.
The continuing spikes in the cost of oil are making transportation increasingly expensive, especially for larger, heavier products such as the consumer and professional heaters that DESA produces.
Bowling Green’s centralized location will not only allow DESA to save on transportation costs, but will expedite the shipping process. The company now can ship products to more than 50 percent of the United States in about one day compared with the average six to eights weeks timeframe to ship from China.
“Our production team has also made a great impact in helping us to reduce costs and produce superior quality,” said Claude Hayes, president of retail heating for DESA. “Our team expects quality, and that expectation has helped us raise the bar in producing the best quality products with the highest level of efficiency. Our sales team has now spread our product base to most major retailers.”
DESA currently employs 450 workers at its 250,000-square-foot plant in Bowling Green. The company will make improvements to its existing facility, as well as add building fixtures and new equipment to accommodate the expansion.
“Our superior relationship with our work force has been integral to our decision to expand,” Hayes pointed out. “The partnership we have with Sheet Metal Workers Local 433 has enabled us to focus on our total quality initiative and given us the advantage of having the most productive labor force for our type of products in the nation.”
John Hindman, secretary of the Kentucky Cabinet for Economic Development, said the ocmmonwealth’s central location, coupled with its logistical advantages and productive work force, make it ideal for companies relying on shipping products to customers across the globe.
“The Cabinet is pleased to work with DESA Heating Products and the Bowling Green community to make this expansion possible,” he said.
For MORE NEWS BRIEFS, click here.
Means the article is accessible only to our magazine subscribers.
