The real victims are the owner and the employees of DeLano Service Inc. This is unfortunate for a homegrown company
Ottawa, Ontario (PRWEB) January 31, 2009
BE Innovative Group Inc. (BIG Inc.), maker of the popular SAT Game For Dummies, the board game that helps teens, parents and educators with SAT preparation, announced today that they may be the latest company affected by the economic crisis hitting North America.
After waiting days to hear back from their manufacturer on the delivery date of the new and improved version of their board game, SAT Game for Dummies, BIG Inc. CEO, Elsbeth Vaino, found an article in The Allegan County News, notifying local residents that DeLano Service Inc., the American owned, century old board game manufacturer that makes SAT Game for Dummies had closed its doors.
The news was a blow to the company, that had orders backed up pending delivery of a new shipment. "In December we received the new prototype and found some printing errors, which delayed the scheduled January delivery. We notified buyers, offered other purchase options, and rebates, but when I read that [Delano] had closed [its doors], my heart sank."
The news came as a shock to BIG Inc., and resulted in embarrassing emails to buyers, advising them that product would be further delayed. Still, the company's primary concern is with DeLano owner Juan Mendez, his family and employees. "It is inconvenient for us, naturally, but we can manufacture elsewhere if need be", says Vaino. "The real victims are the owner and the employees of DeLano Service Inc. This is unfortunate for a homegrown company". BIG Inc. and DeLano Service Inc. have worked closely together over the past year, trying to drive down manufacturing costs on SAT Game for Dummies, in a joint effort for both companies to remain competitive and profitable.
American labor and facilities are inarguably more costly than many overseas options, yet the implications to the North American economy if companies choose this route are serious. With constant pressure to drive down the cost of goods, in order to sell into Wal-Mart, Target and other dominant mass retail chains, the decision many North American companies face seems more about where to move manufacturing, not whether to move manufacturing. Compensation costs of $5.78 in Hong Kong, $1.07 in the Philippines and $2.75 in Mexico versus $23.82 in the United States are hard to ignore. "I understand people like low prices, but I hope they are aware that when they shop at Wal-Mart, they are contributing to the loss of American jobs", says Vaino.
Over the past year, though a recession seemed inevitable, the irony of taking business out of the United States in order to manufacture a product, designed to promote US post secondary education was never lost on Vaino. "We have discussed manufacturing in Asia many times because it is definitely cheaper, but we just can't bring ourselves to do it. It's bad for our economy; it's bad for their environment; and from a business perspective, it's difficult to manage quality".
Honeywell is a good example of an American born business that has recently moved manufacturing overseas where currently 60% of the world's toys are made. Mattel, who took the China route, "before China was cool" , now makes 65% of their toys there. Still, there are small companies like BE Innovative Group Inc., whose leaders, like Ms. Vaino refuse to bend. "We will do everything we possibly can to keep our business in North America. When companies like DeLano need and want our business, we will be here to give it to them. It is just the right thing to do."
For more information please contact:
Chief Creative Officer, B.E. Innovative Group Inc.
Tel: 613 565 6851
BE Innovative Group Inc. designs, develops and distributes innovative products to existing markets. The company's current focus is to revolutionize test preparation by offering gaming solutions. In 2008 they entered into a licensing agreement with John Wiley & Sons Publishing to launch SAT Game for Dummies.
This press release was written and released by BE Innovative Group Inc. and does not reflect the opinion or views of John Wiley & Sons Publishing or the opinion or views of any other company involved in licensing agreements with John Wiley & Sons Publishing.
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