WHERE FOREIGN SOURCING MAKES LITTLE
SENSE
Watson, Inc.’s plants are located in New York, Illinois, and
California. Watson produces a piece of high-tech diagnostics
equipment. Wholesale cost is over $10,000.00 per unit.
It is protected under U.S. patents, and the company
holds exclusive technical expertise in the assembly process.
The unit is composed of over 40 pieces, of which 10 are
manufactured by Watson and the balance come from vari-
ous third party suppliers. Watson is thus approximately
25% pure manufacturing and 75% assembly.
Watson’s plant is 30 years old, but was upgraded and
modernized 7 years ago.
The workforce is nonunion and mostly made up of
younger, college-educated or technically trained workers.
Watson has been approached by a Taiwanese ...