suffer the delays and expense of having our product shipped
from outside the country. It is our intent to continue the design
and manufacture of our electronic products in the U.S.A.
Of course, the subject of Blackstone Models comes up as well.
We design them here but, at present, can only economically
produce them in China. Nobody would be happier than we to
manufacture these products here. Watching wages overseas
rising, customers are often under the impression that we could
now successfully bring this manufacturing on shore. The labor
rate in China has increased from $0.90 per hour to $2.00 per
hour. It is still a fraction of the domestic minimum wage of
$7.50/hr. There are so many manual assembly processes in the
making of a model that we can’t assemble it here and deliver it
at a cost that the market wants.
4: SoundTraxx’ personnel recording a diesel loco on site
4