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Re: From The Inventor Blog

Postby Mark Reyland » Thu Jan 13, 2011 7:05 am

Mark Reyland
Green Belt
 
Posts: 150
Joined: Sun Mar 29, 2009 6:31 am
We'll be there...Will You?

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As you may or may not know, there are over 100 independent inventor clubs in America.

Ranging from small to large, very active to almost lethargic, these groups of creative people are often the seed of innovation - The catalysis for those inventions and products that impact our daily lives.

As with all groups of this kind, there is normally a driving force. In South Florida that’s the one and only Leo Mazur. Soft spoken, kind, yet charismatic Leo believes with all his heart if he can get a group of talented and creative people in the same room they can make a difference for society.

Leo believes in this theory so deeply, that in addition to the tireless work he does as President of the Inventor Society of South Florida, Leo wants to make an even bigger impact by developing, coordinating, and even funding the Inventor Expo “Resources 2011”

RESOURCES 2011 – An Inventor Expo

Presented by the Inventors Society of South Florida at the Palm Beach Convention Center February 12, 2011 from 10am to 8 pm.
Free to attend, Free to exhibit, and Free to attend the educational lectures.


“RESOURCES 2011” is focused on introducing inventors to how the “Industry” thinks and works so they can become the valuable resource they should be.

The expo is a free event where Inventors can showcase their Products and Inventions to manufacturers, product scouts, and investors. You will also find distributors, licensing firms, wholesalers/retailers and marketers, and of course the general public for that all important consumer feedback.

Service Providers including prototype makers, marketing experts, and patent attorneys will also be exhibiting and providing information about what they can do to move the inventors through the process.

Come and hear Industry Experts from all over the country Share their behind-the-scenes knowledge of what it takes to get a product to market

Inventors Society of South Florida (ISSF) is a non-profit organization that is dedicated to the advancement of the Independent Inventor through the use of Education, Motivation and Collaborative Support.

For more information about “RESOURCES 2011” Inventors Expo or ISSF monthly meetings contact Leo Mazur (President ISSF) at mazurelectric@earthlink.net , 561-676-5677 or visit http://www.inventorssociety.net

Re: From The Inventor Blog

Postby Mark Reyland » Fri Jan 14, 2011 7:28 am

Mark Reyland
Green Belt
 
Posts: 150
Joined: Sun Mar 29, 2009 6:31 am
Clear and Convincing evidence?

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Recently I received a very nice letter from a gentleman involved in the Microsoft Corp. v i4i Limited Partnership case currently pending before the Supreme Court.

This case may have a significant impact on the protection inventors currently enjoy from awarded patents so I asked one of our corporate members to explain the basic facts of the case. Here is what Dr. Dariush Adli, a well respected Patent Attorney and avid inventor supporter says about the case.

Microsoft Corp. v i4i Limited Partnership

What should the proper legal standard for invalidating an issued patent be? That is the question before the U.S. Supreme Court. A decision is many months away, and yet, the Court's decision to hear Microsoft Corp. v i4i Limited Partnership, 598 F.3d 831 (Fed. Cir. 2010), has, by itself, made news. This is because each year, more than 5000 petitioners ask the Supreme Court to hear their case but the Court only grants a small percentage (1-3% in a typical year) of such requests.

The U.S. Supreme Court's decision on that issue could profoundly affect the relationship between the patent owners and their licensees and between the patentees and accused infringers in patent litigation cases. The outcome is also likely to affect the value of patents, business investment in research and development, corporations' bottom line and even the health of the U.S. economy.

In Microsoft Corp. v i4i Limited Partnership, 598 F.3d 831 (Fed. Cir. 2010) the United States Supreme Court has granted certiorari to address whether the statutory presumption of validity continues to apply when an issued patent is attacked based on prior art which was not considered by the United States Patent Office (USPTO) when the patent was allowed.

US legislation provides that, in infringement litigation, an issued patent shall be presumed valid. The burden of establishing invalidity of a patent lies with the patent challenger. In Microsoft Corp. v i4i Limited Partnership the alleged infringer cited invalidity based on prior art which was not considered by the USPTO before issuance of the asserted patent. The Federal Circuit, noting that an issued patent is presumed valid, said that it was for the alleged infringer to prove invalidity by clear and convincing evidence.

Microsoft and its industry allies, such as generic drug manufacturers and others, who would benefit by a lower invalidity bar, are pushing hard for the rule change. They argue that the presumption that the patent examiner considered the prior art when the patent was allowed does not apply when the examiner in fact did not have the opportunity to review the relied-on references. They reason that this deference to the PTO makes no sense where the PTO did not actually have the relevant prior art in front of it and therefore did not actually decide that the patent was novel as compared to that piece of prior art. Therefore they ask, why should the courts give deference to a decision that the PTO did not actually make,

Opponents of the rule change, led by inventors, entrepreneurs, investors and businesses that rely on licensing revenue derived from their patents, argue that the current rule has served its purpose well over the past thirty years by protecting and promoting innovation and entrepreneurship. They reason that changing the rule would create uncertainty, discourage innovation, reduce the value of patents and will have a negative impact on the national economy. They also argue that making the rule change would create havoc on the PTO by causing applicants to inundate the PTO with cumulative and marginal references and reduce efficiency of courts and driving up the costs of patent litigation by requiring courts to conduct a mini trial to determine whether the offered evidence is truly new or merely cumulative to what the examiner considered. - A decision is expected next Fall.

You can find out more about this case and other legal issues effecting inventors by contacting Dr Adli at adli@adlilaw.com or http://www.adlilaw.com

Re: From The Inventor Blog

Postby Mark Reyland » Mon Jan 17, 2011 7:05 am

Mark Reyland
Green Belt
 
Posts: 150
Joined: Sun Mar 29, 2009 6:31 am
Drop it kid!...

I was contacted by a very nice young lady not long ago who wanted to tell me about her and her sister-in-law's baby product. She has done so much work on marketing, and made it so much further than most inventors, I wanted to bring you here story.

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I'm Meredith, and after graduating with a degree in Public Relations and Marketing, I was eager to start putting my knowledge to use. I was very fortunate to find a job right out of school but I had to resign when I my husband’s Air Force career relocated us. I never found a job I enjoyed as much as my first and every time we moved I found it more challenging to find work. My sister in law was a mother of two that had come up with a new and innovative idea for a children’s product. She contacted me and asked if I would be interested in putting my marketing background to use by bringing her idea to market. “An Invention?” It sounded crazy but the thought of creating a job from home and having work wherever we moved was too tempting. Shortly after, I formed a business and I became a owner of Sister Chic LLC, and co- creator of the children’s product we now call, dropper stopper.

The dropper stopper is a product that keeps cups and toys clean and close. One end attaches to sippy cups, toys, bottles etc. and the other end secures around strollers, highchairs and car seats. It’s a great tool for moms that don’t have the time to keep bending over or chasing thrown or dropped items. We like to say it puts an end to the pickup game!

Today, dropper stopper is a patented and trademarked product that can be found in over 300 specialty stores throughout the country. Baby Couture Magazine featured dropper stopper among the “Best Products and Inventions you can’t live without as a Parent” and Cool Mom Picks told ABC News Online, dropper stopper was the best toy leash of its kind.

I have been so pleased with how well our product has been received but I’m even more thankful that I pursued the idea. The personal satisfaction and education that you will gain from a project like this is indescribable. It was certainly a long road and I made my share of mistakes along the way but in the end, I was able to turn my passion for marketing into a successful business. I encourage others to do the same, believe in yourself and your abilities. If have the passion and drive, the possibilities are endless.

Find out more about Dropper Stopper at http://dropperstopper.com/

Re: From The Inventor Blog

Postby Mark Reyland » Tue Jan 18, 2011 7:37 am

Mark Reyland
Green Belt
 
Posts: 150
Joined: Sun Mar 29, 2009 6:31 am
I have a question...

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At the UIA we get hundreds of questions a month from inventors about a variety of subjects, in fact we get so many questions we have a person who's job it is just to answer them. We thought it would be a good idea to post some of them on the Daily Inventor Blog so others could get the benefit of both the question and the answer.
______________________________________

Question: Do any of you have quick rules of thumb for estimating materials cost? I've heard 10% of the retail price of similar products, or 1/6th of retail.

Answer: There really is no set rule for estimating material costs on manufactured goods short of making samples. Normally what’s done is the factory is given the prototype and uses it to dial in the production, material, and decorating costs. What they give back to you is an all-inclusive number representing the “Manufactured cost”.

In this number are the materials, the labor, the decorating costs, the tooling or mold costs spread across the number of manufactured units, the packaging costs, and the ship pack costs.

_____________________________________________

Question: Where is the "Best" place to search for a patent? I know about the USPTO, and I know about Google, but are those the best places to be looking when I start my initial search?

Answer: The USPTO, Freepatentsonline, and Google Patents are sites people use the majority of the time.. Google is ok except they seem to be behind by 1 to 2 months after a new patent issues. The USPTO is a good site and that’s where I spend most of my time. It took me years to be able to master searching on there, now I can narrow a search down pretty quick.

http://www.freepatentsonline.com/ is a really cool site for the novice and the so called expert. I use it mostly for patent application searches. You can search publications after the 18 months are up. I find this to be so important and most inventors never do it before or after they apply. I search applications and patents after I have applied for a patent. I like to see what patents and applications pop up after I apply, it gives me a heads up.

Which ever site you use learn to master it the best you can. It will be frustrating at first but hang in there, one day you will cruising along and realize this is pretty easy.....Just remember when searching applications someone may of choose to not have there application published....there nothing you can do about it. .....its the nature of the beast.

____________________________________________


Question: What is a "Landed" price?

Answer: A "landed price" means the all inclusive price of the product delivered to your door. It includes freight, taxes, and all associated import fees. You will also hear it called FOB (Freight on board) the destination..."FOB Columbus Ohio" means the cost including delivery to Columbus Ohio.

Re: From The Inventor Blog

Postby Tania » Tue Jan 18, 2011 10:12 am

Tania
White Belt
 
Posts: 34
Joined: Wed Jan 13, 2010 8:27 pm
Mark Reyland wrote:Question: Do any of you have quick rules of thumb for estimating materials cost? I've heard 10% of the retail price of similar products, or 1/6th of retail.

Answer: There really is no set rule for estimating material costs on manufactured goods short of making samples. Normally what’s done is the factory is given the prototype and uses it to dial in the production, material, and decorating costs. What they give back to you is an all-inclusive number representing the “Manufactured cost”.

In this number are the materials, the labor, the decorating costs, the tooling or mold costs spread across the number of manufactured units, the packaging costs, and the ship pack costs.

_____________________________________________

Question: Where is the "Best" place to search for a patent? I know about the USPTO, and I know about Google, but are those the best places to be looking when I start my initial search?

Answer: The USPTO, Freepatentsonline, and Google Patents are sites people use the majority of the time.. Google is ok except they seem to be behind by 1 to 2 months after a new patent issues. The USPTO is a good site and that’s where I spend most of my time. It took me years to be able to master searching on there, now I can narrow a search down pretty quick.

http://www.freepatentsonline.com/ is a really cool site for the novice and the so called expert. I use it mostly for patent application searches. You can search publications after the 18 months are up. I find this to be so important and most inventors never do it before or after they apply. I search applications and patents after I have applied for a patent. I like to see what patents and applications pop up after I apply, it gives me a heads up.

Which ever site you use learn to master it the best you can. It will be frustrating at first but hang in there, one day you will cruising along and realize this is pretty easy.....Just remember when searching applications someone may of choose to not have there application published....there nothing you can do about it. .....its the nature of the beast.


BUSTED!- you copy pasted these questions and answers from the, now closed, mentor site from almost 2 years ago. :shock:

http://theinventorsmentors.forumo.biz/t ... ting+costs

http://theinventorsmentors.forumo.biz/t ... r-a-patent
Last edited by Tania on Thu Mar 03, 2011 1:51 pm, edited 1 time in total.
style does not= Co-inventor
"One method used by some patent attorneys is to ask the question- If the idea of this person had not been contributed, would the invention exist, as it is claimed?"
http://www.yale.edu/ocr/pfg/guidelines/ ... rship.html

Re: From The Inventor Blog

Postby Mark Reyland » Wed Jan 19, 2011 7:45 am

Mark Reyland
Green Belt
 
Posts: 150
Joined: Sun Mar 29, 2009 6:31 am
Inventing a way to help

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To inspire the hope of achievement in the lives of less fortunate children

How does a contractor go from swinging a hammer to helping create an organization giving children with God given potential but no resources, a little hope – a chance to succeed?

During my 20 years in the construction and contracting industry I had successfully taken hundreds of projects from conception to completion. These projects would eventually inspire me to become an inventor, and a life changing back injury would motivate me to take that chance.

After all, I had been storing ideas in my head for years, why couldn’t I be an inventor? It seemed like every day I was trying to figure out something new. I had no idea what to do, or where to go... but that didn’t matter; I was going to be an inventor!.

My drive to be an entrepreneur had consistently led me to be a leader in all the projects I had ever been part of, and my motto of “There’s a billion ways to make a dollar, but only if you never stop moving.” had always served me well. So I started opening my mind to the learning process for becoming an inventor, and confusion quickly began to set in. What a can of worms! Where does a person really start? I kept digging, and eventually I was fortunate enough to find help from kind and caring people who had taken the journey before me, and to whom I will always be eternally grateful.

I had always cared about other people, but the more I started focusing on inventing, the more I found myself focusing on ways to make a real difference in this life.

Time passed slowly, but then it happened. My old friend Josh Mason came to me and threw me his three minute pitch on this crazy soccer idea... or so I thought at the time. (Funny how our minds don’t always grasp things right away) It occurred to me a short time later, “He wasn’t talking about soccer, he was talking about making a real difference!” I called him back to see if I really understood, and sure enough, I had caught up to him.

So “Streamline Kids” was born. From that point on we spent the entire time nose deep in research, and eventually formulated a business plan to lay out the course we were about to embark on. By that first spring, we had enough to go on, and the business of getting down to business had begun. We founded Streamline Kids Inc, an Iowa based 501(c)(3) non-profit corporation. The intent is simple and worthwhile – To help children participate in all kinds of existing extracurricular activities, by funding the costs for families who can’t afford them. From Sports, to Scouts, to Band Camp, Streamline kids is focused on making sure these kids get the opportunity to participate.

This is a larger problem than any of us realize. I know I took it for granted when I was a kid participating in sports, and after school activities. But I was a kid, I didn’t know any different! Today things have changed, prices have gone up, and some incomes have gone down or disappeared all together. I am also now a parent, and know what it means to want the best for my child.

It’s an uphill climb - We started talking about Streamline Kids, promoting the project at every opportunity. Eventually we gained support, and the team began to grow.

Today, Streamline Kids has assembled a Board of Directors, and an awesome team of volunteer staff working diligently to reach the goals laid out in the business plan. The Streamline Kids family of children continues to grow with no end in sight. We actively partner with schools and community outreach organizations as we continue to explore the many ways we can affect some change with this program.

But we have not done it alone. We know we won’t be able to help every child attend these confidence inspiring programs without support. The growing list of corporate sponsors who have found Streamline Kids to be a worthwhile cause is truly impressive. With the help of corporations like these, and individuals like you Streamline Kids will have the ability to help a growing number of children every year - to impact a life in a positive way is the gift our supporters give these children through us.

As for me….at this point in my life, the end of every day comes when I find myself humbled to be a part of such a great organization striving to make a real difference. I often think about the path I’ve taken, and come to the conclusion that it is inherent in all of us to want to give a part of ourselves to something greater than ourselves. Inventing Streamline Kids has become this for me, as it has grown into something far more than the simple little “idea” it started with.

Thanks Josh! We invented a way to give back!
____________________________________________________

You can make a difference by supporting StreamLine Kids. Contact them at Contact@streamlinekids.org or go to http://www.streamlinekids.org/
STREAMLINE KIDS
Address: 1001 12th St.
Marion, Iowa 52302

Re: From The Inventor Blog

Postby Mark Reyland » Thu Jan 20, 2011 6:28 am

Mark Reyland
Green Belt
 
Posts: 150
Joined: Sun Mar 29, 2009 6:31 am
HEY...where am I going to park?

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Most inventors know there are two main ways to get your product to market - Licensing and Manufacturing. We also know when an inventor chooses to manufacture goods themselves they find out the distribution process is the hardest part of the entire process.

Don’t get me wrong, many inventors successfully take products to market every year, and some do very well. However, there are many who don’t. The reality is there are inventors out there who have a garage or storage locker full of merchandise and no active plan for recovering any of their money.
So, on behalf of your wife or husband who wants to park their car in the garage again, I asked Donnie Lewis to talk a little about the secondary market where stock like that often gets converted to cash.


It’s a New Year, and time to clean out the closet and finally move that product you invented but never sold. Whether you are a Wholesaler, Distributor, or an Inventor I am quite sure there is some overstocks or excess merchandise sitting around that needs to be moved.

I have found many people think the 288 Bicycle tires and horns they have will ultimately sell. That magic customer or big box retailer is going to ride in on the white horse and save the day. However the reality is there comes a point in time where the value of the good’s is diminished as newer and better products are always being introduced and those tires and horns become obsolete.

It really doesn’t matter for the most part what the product you are holding on to is, it’s going to happen and you will sooner or later have to write it off, throw it away, and chalk it up to experience.

That’s where I come in. Having sold closeouts, excess, packing changes and overstocks for over 21 years my experience has shown that everything will sell at a price. From a single pallet to a warehouse full of goods, the process of selling into the secondary market is the same. It starts with a phone call and a decision to make it happen..

Who knows the next new deal may be just around the corner.
________________________________________________
Don Lewis is a professional broker of secondary merchandise

Lewis Associates of Ohio, Ltd.
614-231-1324
lewisassociates@gmail.com

Re: From The Inventor Blog

Postby Mark Reyland » Fri Jan 21, 2011 7:11 am

Mark Reyland
Green Belt
 
Posts: 150
Joined: Sun Mar 29, 2009 6:31 am
Who knew?

Is the 1940's Film Goddess Hedy Lamarr really responsible for pioneering spread spectrum technology? ....It's True

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Have you ever heard of "Spread Spectrum"? Well, it shouldn't surprise you that most people haven't. Afterall, it's the technical basis that makes wireless communications work in cellular phones, faxes, and other wireless communications systems. It's currently utilized in "wireless" LANS, integrated bar code scanner, palmtop computer, radio modem devices for warehousing, digital dispatch, digital cellular telephone communications, city/state or country networks for passing faxes, computer data, e-mail or multimedia data. And it's use is on the verge of potentially explosive commercial development, especially in relation to the internet.

However, what's IS surprising is that the inventor behind this amazing process is an incredibly beautiful and talented actress of the 1940's! Her name is Hedy Lamarr, known as "The Most Beautiful Girl in The World", who first became famous for her scandalous skinny dipping scene in the 1933 Austrian art film "Ecstacy" (which at the time was banned by the U.S. Customs Department). Often quoted as saying "Any girl can be glamorous. All she has to do is stand still and look stupid.", Lamarr starred with Clark Gable, Spencer Tracy, Judy Garland, appearing in approximately 25 films during her film career.

Ironically, her real life, one of unusual twists and turns, is truly the stuff that movies are made of. Born Hedwig Eva Maria Kiesler, she grew up in Vienna, Austria and married millionaire Friz Mandl, a Nazi sympathizer who dealt arms to Hitler. During her four year marriage to Mandl, she listened and learned about advanced weaponry when he took her to all his business meetings as his showpiece wife.

She grew to hate the Nazis as well as her husband and escaped to London, where she met Louis B. Mayer. He brought her to the United States and gave her a shot in Hollywood by giving her a movie contract, a new name, and a new life - though she never forgot about the war that was brewing back in Europe.

She met American composer George Antheil, dubbed "the bad boy of music", and with his help devised a plan to to help the war effort. What they came up with was an idea for a sophisticated anti-jamming device for use in radio-controlled torpedos.

Two years later, when Lamarr was just 26 years old and one of the great sex symbols of all time, they were awarded U.S. Patent Number 2,292,387 on August 11, 1942, under the name "Hedy Keisler Markey" and George Antheil for a "Secret Communications System."

They donated the patent as their contribution to the war effort, however, the invention would not be implemented during World War II and only came into use 20 years later during the 1962 Cuban Missile Crisis when it was installed on ships sent to blockade Cuba - three years after the Lamarr-Antheil patent expired. Neither of them ever received any compensation for their patent.

During that time, Lamarr was also interested in accepting a position under Dr. Kettering who had formed the first "National Inventions Council" for the government. However, she was encouraged to stick with her successful acting career and to help the war effort by selling war bonds. This she did, raising seven million dollars in a single evening.

The "Secret Communications System" has since been in extensive use in military communications. But most importantly, their patent also catalyzed the use of Spread Spectrum, which is a highly efficient way of using radio frequencies at the same time, without interferring with each other. This is the basis for the cellular phones, faxes, and other wireless communications systems in widespead use today.

Who would have known that a glamorous female movie star of the 1940's would defy all stereotypes and create a communications system that was decades ahead of its time and is only now coming into widespread use?

Origionally printed on American Inventor online edition

Re: From The Inventor Blog

Postby Mark Reyland » Mon Jan 31, 2011 7:19 am

Mark Reyland
Green Belt
 
Posts: 150
Joined: Sun Mar 29, 2009 6:31 am
Wow..What a week!

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Last week was a long, tiring, but totally fulfilling week at the UIA. It started weeks before as we worked to get ready for the Inventor Spotlight and Inventor education seminar at the PGA show in Orlando Florida.

I’m happy to report it all worked out great! The Inventor education seminar last Wednesday was not only well attended with 97% occupancy, but well received by the inventors who attended as speakers like Forbes Riley, Bill McHenry, and Kenny Durham (to name just a few) took the time to answer questions about all things inventing.

But the PGA Show Inventor Spotlight…That was huge. 18 inventors coming together to show the golf world their new innovations – from a grip to keep your club handle dry, to a pop up course marker, and even a disposable sweat band for your hat. The inventors spoke, and the golf industry listened. The listened so well in fact, several inventors wrote orders with retailers’ right there in the booth.

With 45 thousand people walking by, the excitement of the moment, and the prospect of an order, it’s often easy to lose track of the motivations behind inventing. This came shining through as I had a very nice discussion with an inventor named Patrick Pinkart.

For those of you who have not had the pleasure of meeting Patrick, I will tell you he is a soft spoken man, with a tenacity rarely seen in people. Patrick is in every way a survivor and as I spoke to him about his invention I found myself thinking about the much deeper meaning behind why we inventors do what we do.

You see, Patrick broke his neck in a diving accident back in 1986. This however, didn’t do anything to squelch his love of Golf, or his desire to play it. What it did do was drive him to place where he could take this unfortunate turn in his life and make it something that benefits others. - That is exactly what Patrick did.

Patrick invented the Quantum Grip. http://www.quantumgrip.com/index.php

It’s a great product that allows people with diminished grip strength to not only play Golf, but to do many other things they may have had to stop.
But make no mistake - this product, born from adversity and forged by determination is not just about Golf. Quantum Grip is about independence, and inventing it was about making a difference for people Patrick had never even met.

As is often the case, we lose sight of the meaning behind innovation, the reason we may have been blessed with talents and gifts that allow us to do something few others can. It’s at that moment we meet people like Patrick Pinkart and the real meaning comes back into focus.

Re: From The Inventor Blog

Postby Mark Reyland » Tue Feb 01, 2011 6:15 am

Mark Reyland
Green Belt
 
Posts: 150
Joined: Sun Mar 29, 2009 6:31 am
Made in China? ...Maybe not

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It all sounds depressingly familiar: Master Lock Co., in the throes of a restructuring and under shareholder pressure to control costs, has been shipping jobs halfway around the world. "We're strategically going at it, when it makes sense, where it makes sense," said Master Lock senior vice president Bob Rice.

In a new twist, however, it's China where Master Lock's costs are rising disruptively. The company has responded by pulling production back to Milwaukee, where the manufacturer of iconic padlocks was founded in 1921. Master Lock and other companies have begun to reassess China:

• Labor unrest rippling across China is pushing wages higher in a nation with a supposedly inexhaustible supply of cheap workers. Thirty provinces have raised their minimum wages in the past year, some more than 20%.

• Further inflating prices of Chinese imports, Beijing engineered a 20% weakening of the dollar against the yuan in the last five years, bending to pressure from Washington, which bristles at China's tight control over its exchange rate.

• Shipping rates from Chinese ports spiked fourfold in the 12 months through August to their highest levels in maritime history, according to Universal Cargo Management Inc. in Los Angeles.

Master Lock was bringing work back to Milwaukee during the recession, Rice said. The company's flagship industrial campus, with nearly seven football fields of unionized factory floor space, is at capacity for the first time in 15 years. "We're not done yet," said Rice, echoing economists and trade officials who expect Chinese wages to rise further as the dollar continues to fall. Whether it's called near-sourcing, on-shoring or re-shoring, America's outsourcing infatuation with China has cooled a few degrees.

General Electric Co., which exports water heaters from China to the U.S., is preparing to add water-heater production later this year at its Louisville, Ky., plant, the first new product added there in 50 years. Wham-O Inc. is shifting a share of its Frisbee and Hula Hoop production back to the U.S. "The main reason is cost of production," said Wham-O chief executive Kyle Aguilar. "We are making progress toward our goal of producing half of all Frisbee discs in the United States."

No one suggests that America is on the brink of a manufacturing renaissance, or that the reverse flow of jobs is anything but a trickle. But the jobs that flow against the tide reflect a slight but hopeful tilt in the trade equilibrium. "One thing is certain," said Pieter P. Bottelier, senior professor of China studies at Johns Hopkins University in Washington, D.C. "Production costs in China are on the rise for various reasons, including unit labor costs, energy and transportation, taxes, land and China's real exchange rate. This will help the U.S. to regain competitiveness in several industries."

As Rice selectively shifts production back home, mainly in the form of combination locks, subassemblies and keys, Master Lock has added some three dozen jobs in Milwaukee in recent years, bringing total factory head count to 379. That compares to 1,300 at its peak in the early '90s before the company was blindsided by a proliferation of low-cost Asian copycats. That sent Master Lock into China in 1993 and then into Mexico. "We went there in survival mode," Rice said of the early outsourcing. "We're businessmen. We do what's right for this company."

Milwaukee's industrial history is littered with empty factories, many in the vicinity of Master Lock. Ensconced in one of the nation's poorest inner cities, Master Lock's formula for job creation is a combination of high volumes and as much automation as it can afford, Rice said. Often no more than a single technician oversees multiple banks of automated equipment, capable of shaping parts within one-3,000th of an inch. Master Lock's system produces a shiny new combination lock every 2 ½ seconds, each with a unique six-digit combination printed on a sticker on the back.

By John Schmid of the Journal Sentinel
http://www.jsonline.com/business/112759 ... r=facebook
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