lionel

You still think outsourcing is a good idea?

Dave Farquhar Toy trains , , , , ,

Don’t be fooled by the topic I put this in: This has potential implications for any area of manufacturing.

Lionel, the most famous U.S. maker of toy trains and model railroads, has been found guilty of industrial espionage and ordered to pay $40 million to competitor MTH Electric Trains.

What happened? Well, both Lionel and MTH outsource their production. As it turned out, some work that was done for MTH ended up in Lionel designs as well.I really don’t think anyone has a good grasp of what happened, but the story I heard is that a contractor who worked for MTH’s subcontractor designing locomotives moonlighted for Lionel’s subcontractor, and that he reused some work that he did on an MTH design on a Lionel design. MTH claims Lionel knew about this. Lionel claims it did not.

Regardless of who you believe, somebody was wronged. R&D work for one company ended up benefiting its competitor, and now that mistake is costing lots of money.

As a consumer, I’m disappointed because I’ve been led to believe that Lionel and MTH do their own designs and outsource production to Korea and China. Evidently they outsource some of their lucrative R&D as well.

Apologists for both companies have said that Korean companies tend to be related by blood or marriage and that workers routinely move from company to company, taking trade secrets with them and using them. That’s the corporate culture. U.S. corporate culture, of course, is exactly the opposite. We demand that you somehow forget all of your proprietary trade secrets when you change employers. Or at least don’t use them in your new job.

The products involved in this case aren’t the $20 locomotives you see at Hobby Lobby or Toys ‘R Us either. We’re talking premium products that sell for five figures here. I’ve seen them in person–they’re definitely impressive looking. But they’re playthings for people who make six figures per year, minimum. I like O gauge Lionel stuff an awful lot. But I don’t expect to ever own one. They cost more than I’m willing to pay for a computer.

I suspect that with those kinds of profit margins, they could have afforded to build them in Michigan or New Jersey, where Lionel understands how its workers work and its workers understand how its employer works. That’s the scenario if you assume Lionel is innocent. If you assume Lionel is guilty, well, that scenario makes industrial espionage much more unlikely. It’s always best not to allow yourself to be tempted to do something wrong–it’s easier to avoid temptation than it is to resist it.

And if they’d had to raise the price of a $1,400 locomotive by another $100, I doubt too many people would have screamed. Especially if the words “Proudly made in USA” were prominently featured on the package.

There’s some question whether there’s even room in a $100 million hobby for both Lionel and MTH. When your industry is worth $100 million as a whole, and you have to share that pie with four or five competitors, you can’t really afford a $40 million jury award, can you?

Saving a few bucks in labor and R&D may have just cost Lionel its life.

A Bing in Marx clothing

Dave Farquhar Toy trains , , , , , , , , , , , , ,

The sign said “50% off all items $25 and under. Other items, make offer.” I spied a table full of beat-up Marx trains. I picked through them. There were two 3/16 scale tinplate boxcars and cabooses, paired with a Marx Commodore Vanderbilt locomotive, marked as a “set.” Price: $79. At least two of the cars were missing wheels and the loco had bad paint. Heaven only knew if it ran. The bundle wasn’t worth $20. Likewise for a six-inch bundle. Two common six-inch cars, rusty and one missing a coupler, paired with a locomotive with no wheels or engine or paint–about 90% naked, except for rust–for $65. I’d have been willing to pay $7.

I almost overlooked the three six-inch passenger cars that were almost completely devoid of paint. It’s a good thing I didn’t.

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Shopping an estate sale for trains

Dave Farquhar Toy trains , , , , , , , , , ,

My girlfriend loves shopping at yard sales, flea markets, thrift stores, and basically everywhere people look for bargains.

I’m not into that all that much. I’m a guy. So I just asked her to keep an eye out for tools for me if she happened to be garage sale-ing.

This week she found an estate sale with tools and trains. It started at 7:30 this morning. So I dragged myself out of bed to go.The description said "electric trains." Usually when people say electric trains, they mean old American Flyer, Lionel or Marx, because that was what those companies used to put on their boxes. "Model trains" usually means HO or N scale. Nothing against those, but they’re not my thing. And besides, you can buy those anywhere.

When I got there, it was right at 7:30. It looked like they’d started early because there were lots of people there. I noticed a lot of people glancing at the trains but not staying long. I took a look. The glossy brightly-colored enameled bodies instantly told me it was pre-war stuff. I looked at the prices. $85 for a refrigerated car. $28 for a gondola. $24 for a caboose. These guys had gone to the library and looked up the values of the cars. I know because the guy told me so.

"Are these prices about right? I went to the library and looked them up."

I explained to him that the Greenberg price guides tend to be skewed in favor of the east coast. Prices are higher there, partly because the cost of living is higher out there than in the midwest, and partly because there’s a bigger following over there. Lionel and Marx were both New York companies. Gilbert was a New Haven company. Flyer was a Chicago company before selling out to Gilbert, but that was prior to 1938. There’s more appeal to the stuff on the east coast because you find people whose grandfather or great uncle worked for one of those companies, or some other connection.

What I didn’t tell him (but should have) was that those prices are for mint condition. And while his items were in nice shape, they were anything but mint. Most of them would grade to excellent, or very good. Stepping down a grade knocks anywhere from 10%-50% off the price of the item.

The cars also weren’t 100% original. At some point the couplers on the cars had been replaced with Lionel post-war couplers. That’s an upgrade, which is probably why the original owner had done it, and whoever did the upgrade did a good job, but from a collector’s point of view, it lowers the value. It’s an advantage to people who run the trains, but someone like me isn’t going to pay extra for it.

The prewar freight set that was priced at $137 total at this sale probably would have been priced closer to $75 at Marty’s Model Railroads, frankly. Marty probably would have given him $40 total.

He also had two passenger sets. They would have graded out to Good, possibly only Fair. They, too, were priced at mint.

There was a nice prewar engine. I forget the number. It was priced at $250 for the engine and tender. That’s a fair price if it’s a whistling tender, if the engine is in perfect working order, and the paint is good. The paint was really good on the engine. But it probably at least needed a lube job. With no way to test the engine, there was no way I was going to pay $250 for it.

I spied a couple of postwar Marx diesels, priced at $50. It was an A-B pair, with the B unit being a dummy. A quick examination revealed the front had been cracked and re-glued. Diesels tend to go for more than steam engines the same age, but in that condition, and untested, a Marx should only go for $20.

I also spied a couple of pairs of Marx metal switches. They were the electric variety. I’m told metal Marx switches were prewar. I don’t know about that, since all of the metal ones I’ve ever seen were in a lot with postwar equipment. Maybe they were put together after the war with old parts. Marx was known for that. At any rate, the Marx metal switches are highly desirable. The later plastic switches sit higher than your track, so you have to shim your track for the locomotives to run right. These don’t. Also, the design allows Marx and American Flyer engines with thicker wheels than Lionels to pass through them. So a metal Marx switch lets you run any train you want. And unlike the Lionels of the same vintage, they run off a fixed 18 volts, not from the track, so they tend to work more reliably.

The only Lionel switch that compares is the Lionel 1121, which Lionel didn’t make for very long. It’s easier to make the 1121 self-tending, but in all other regards the Marx is better.

The switches were priced at $10 per pair, including the original boxes, control panels and wires (but the wires need to be replaced). That’s not a fabulous price, but it’s fair. I paid $10 per pair for some plastic Marx manual switches at Marty’s back in December. Marx switches tend to sell for $10 per pair on eBay, but then you have to deal with shipping.

So I bought the two pair of switches, and nothing else.

Later, my girlfriend told me they wouldn’t take her check. So I guess it’s a good thing I only got the switches. I wouldn’t have been able to get any more even if I’d wanted to, because I only had $24 in cash on me.

It was a mild disappointment. I took a quick look at the tools and saw the same thing. Prices were very close to what I would pay at Sears. Only at Sears, I’d get a warranty on it, and if I bought $100 worth of stuff, I’d get a $5 off coupon on my next purchase.

It was a mild disappointment. She was disappointed too. I’m going to assume it wasn’t typical. She told me it wasn’t a very good estate sale.

I think I’ll go back tomorrow afternoon, towards the end, and see if the trains are still there. Maybe then he’ll be looking to deal. Marty can charge the prices he does because he’s willing and able to sit on inventory for months or years. Individuals usually can’t or won’t do that. But he was charging more than Marty would.

If not, there’ll be more next week, or if not, the week after. ‘Tis the season, and very early in the season, at that.

Creating vignettes on a train layout

Dave Farquhar Toy trains , , , , , , ,

I keep seeing listings on eBay in the O gauge model railroading section for something called “Homies,” which the slimy salespeople say are the hottest thing in model railroading.

Yeah, whatever. I found some. I bought some. Here’s what I think of them.

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A Soviet train on eBay!?

Dave Farquhar Toy trains , , ,

I’ve read about Soviet toy trains, but I’ve never actually seen one for sale, until today.

I expect this Soviet O gauge toy train car on eBay to go for $200, possibly more.Of course, the Soviet trains are more of a novelty or curiosity than anything else. They’ll run on Lionel track, and the voltage is close enough that a Lionel or compatible transformer will run them just fine. But running them?

The Soviet trains are a close enough copy of 1939-1941 American Flyer that I suspect it would couple up to a Flyer train just fine. That would be the trick to running any of this stuff. Modern Lionel trucks and couplers would probably bolt on just fine, but I wouldn’t dare modify something like this. I won’t even change the couplers on any vintage train, even a $15 Lionel caboose, unless the originals were damaged.

I’d debate even running a Soviet train car on track, but then I remember, these were toys and they were meant to be enjoyed, so if it ran once–which it almost certainly did–it should run again.

So I’d buy a couple of Flyer passenger cars, change the coupler on the front car so it would couple with a Lionel locomotive and tender, and have that bad boy running around on track again in the middle of a Flyer train. If I had $200-$250 that I didn’t know what to do with, that is.

Few of these Soviet trains were made. They were made to be given as gifts to boys who found favor with the Soviet government. Some made it out of the country for various reasons, as could be expected, but supposedly it’s now illegal to take one out of the country, as the Russian government has declared them a national treasure.

Sure I want one. But hey, there are lots of things I want. I won’t be placing that bid.

Munich\’s unexpected migration costs prove nothing so far

Dave Farquhar Linux , , , , , , , ,

I saw an article in the Toronto Star in which Steve Ballmer was, um, well, talking gleefully about the city of Munich’s highly publicized and controversial migration to Linux, server to desktop, costing more money than expected.

So I suppose Mr. Ballmer is prepared to reimburse one of my clients for its unexpected expenses in migrating from VMS to Windows then, eh?

Yeah, that’s what I thought.I wouldn’t call myself a migration specialist, per se, but it seems that during my career, just as often as not I’ve been involved in projects that are migrations to something or other, and more often than not, they’ve been migrations to Windows. I helped one of the first OS/2 networks outside of IBM itself migrate to Windows NT. I helped lots of smaller clients migrate from various versions of Mac OS to Windows NT. I’ve done a couple of small projects that migrated something Windows- or VMS-based to Linux. Last year I helped a client migrate from VMS to Windows 2003. Right now I’m working on a project that migrates another client from VMS to Windows 2000/2003.

I’m not trying to prove that I’m a migration expert, but I do think I’ve learned a few things along the way. And one of the first things I learned is that if you’re trying to migrate in order to save money right away, you’re migrating for the wrong reason and your project is probably going to fail very quickly. It’s very hard for a migration to save you that much money that quickly, and if it does, then that means its predecessor was so broken that somebody ought to be fired for not replacing it five years earlier.

The other thing I’ve learned is that a migration always always has unexpected costs, for a very simple reason. It’s impossible to know everything that’s going on on your network. I don’t know everything that’s going on on my home network, and most of the time, I’m the only one using it.

You might say I’m scatterbrained. I say you might be right. But let me give you an example from a network other than mine. In my first job, they decommissioned DOS-based WordPerfect years before I was born started working there. But since the system didn’t prevent people from installing software, people just smuggled in their copies of WordPerfect from home, installed it, and went right on using it, creating new data. Then I came along to migrate them to Windows NT, and they planned the same charade all over again. Only this time, they weren’t able to install their copy of WordPerfect. When told it was illegal to install and we weren’t going to do it, they said they needed that data in order to do their job.

That, my friend, is an unexpected expense.

The city of Munich undoubtedly has data in obsolete formats, being used every day by people, without anyone else knowing about it. I have a client still running something they rely on every day in dBASE II. Yes, TWO! Yes, when the account manager told me that, I made a joke about CP/M. For those of you who haven’t been around that long, dBASE II was obsoleted more than 20 years ago, although some people continued to use it after it was replaced by dBASE III. Some longer than others, it seems…

In this line of work, you find weird stuff. I know weird stuff is attracted to me, but I know I’m not the only one who finds this.

And weird stuff like that, my friend, can sometimes be an unexpected major expense.

The unexpected expenses my current client paid in its current migration paid for me to have a box full of my dad’s old Lionel trains fixed up better than new, and then to buy a bunch of new stuff. Trust me, it wasn’t cheap. And trust me, only a percentage of what my employer got trickled down to me.

I’m sure the city of Munich went into this knowing some or all of this. I’m also sure this wasn’t about money, even though Microsoft is gloating about money now.

What Steve Ballmer wants everyone to forget is that Microsoft came in with the lowest bid. Maybe not initially, but in the end they did. And Munich went with a Linux-based solution anyway.

Why? I’ll tell you why. New Microsoft Office releases every two years. New versions of operating systems every three to four years. New bloatware service packs that guarantee you’ll have to replace your hardware every three years, released every year. Annual antivirus subscription rates. Lost productivity when a virus slips through the cracks anyway. Lost productivity when spyware breaks some required business app.

MCSEs work cheap, and the software is inexpensive at first. But you get nickled and dimed to death.

Linux is more costly than expected this year. But the next four years will be less expensive than anticipated.

And Munich may be betting on that.

Learning about scratchbuilding the hard way

Dave Farquhar Toy trains , ,

I haven’t had a lot of free time the past couple of weeks, and as you’ve probably gathered, I haven’t been spending a lot of it in front of a computer. I’ve been in the basement, learning how to make stuff for the train.

Along the way, I’ve learned a few things, mostly from experience rather than from books. I still have a long way to go.Not all paints and finishes are compatible with one another. When I tried to spray one brand of glossy finish atop a different brand of black paint, the paint crinkled. Spraying paint thinner on it would have done less damage.

Aside from the hard lesson on paints, clones of the old 6-inch 4-wheel Marx train cars are very simple to build. That must have something to do with why they cost 59 cents when they were new.

The look of lithographed tin can be reasonably approximated by printing a design on, of all things, plain paper, then spraying it with the same glossy finish that ruined the paint job on the first car I built. Attach said paper with spray adhesive, and only the very observant will notice your car isn’t tin litho.

Styrene plastic is very easy to work with. You can build simple things from it very quickly, so long as you use an MEK-based solvent, rather than the cement that comes in tubes. Solvents give a stronger bond, and after holding the joined piece together for two minutes, you can continue to work with it.

Aluminum is essentially free, and can be cut with scissors, but joining it is a pain. Joining two pieces with solder is very difficult. Epoxy is easier, but it’s harder to work with than the plastic solvents.

Tin and brass are extremely easy to solder. I now know why so many hand-built metal models are made of brass. It’s strong, reasonably easy to form, and not terribly expensive.

Sheet metal is dirt cheap at onlinemetals.com, but the $3 worth of brass that it takes to make a train car will cost $10 to ship, even if you have them deliver it by stagecoach UPS ground.

It’s very easy to end up paying $12 for a rustbucket Marx train car on eBay, and it’s more satisfying, if you have the requisite ability, to watch cars you made yourself go around your track than to watch cars you sniped with four minutes left. (I’ve only done that once. The rest I bid the way nice people do.) So most of the time you’re better off with your $13 worth of brass, whether you bought it online or at the local hobby shop.

You can fabricate your own Lionel- and Marx-compatible axles using 3/32-inch brass rod from a craft or hobby shop, cut to 1 3/4 inches in length for Lionel, or 1 7/8 inches for Marx. Put a dab of solder or epoxy half an inch inside to keep the wheels from going in too far.

Fixing a Marx 490 O27 toy locomotive

Dave Farquhar Toy trains , , , , , , , ,

Note: Please don’t do what I did in this post. Chances are you’ll make things worse in the long run.  If you’re looking for information on fixing a Marx train that won’t run, go here for instructions on how to do that.

I fixed my Marx 490 locomotive this weekend. I used the tips in The All Gauge Model Railroading Marx Trains guide. Scroll down to the heading titled, “The Marx motor.”

I was skeptical because these instructions call for WD-40, and it seems I’ve read a hundred other places never to use WD-40 on any model train. But my Marx 490 wasn’t running well, and it would cost more to have it professionally repaired than it’s worth.But before I continue, let me interject something. If you’re here from Google because you just found a box of old trains that say “Mar” on them, the company is Marx, not Mar. And the trains look a lot like Lionel, but they’re not Lionel. In a few rare instances, Marx trains are very valuable. But in most cases, a Marx isn’t worth as much as the box a Lionel came in. Which is why I said it would cost more to repair my Marx than it was worth. I just had two Lionels repaired for $25 each, plus parts. You can usually get a Marx 490 with some cars on eBay for $25.

But that’s not to say Marxes don’t have charm. They certainly do.

There. I feel better now. Back to the story. Where was I? Oh yeah. WD-40. I didn’t use WD-40 on my Marx. I used Gunk Liquid Wrench instead. Two reasons: The main purpose behind WD-40 and similar oils is to clean, rather than lubricate. They leave a little bit of lubricant behind, but not a lot. Gunk Liquid Wrench, like WD-40, is primarily a solvent. But it has synthetic oil in it, whereas WD-40 has kerosene in it. In my mind, this makes Liquid Wrench a better choice for this purpose because what little lubricant it leaves behind when the solvent evaporates will be of higher quality and last longer than WD-40’s lubricant.

But there was a second reason. Liquid Wrench was on sale, so it was cheaper. I also thought long and hard about Marvel Mystery Oil in a spray can–it works in cars and airplanes something wonderful–but opted for Liquid Wrench because the instructions called for a penetrating lubricant, and I didn’t know if the Marvel would exhibit the same kinds of properties. I’m a journalist-turned-computer tech by trade, not a chemist.

But first, I tried omitting the WD-40 step and just cleaned it with Goo Gone and TV tuner cleaner. Like I said, every time I turn around I read somewhere that you shouldn’t go near a model train with WD-40. Between the TV tuner cleaner and the Goo Gone, the train looked brand new very quickly. I was impressed. It ran very nicely too, but the next day it didn’t run at all. Figuring that now I had nothing to lose, I broke out the Liquid Wrench.

After a spraydown with Liquid Wrench, it ran too well–it flew off the track and fell 4 feet to my concrete floor. Ouch. That left a mark. One corner of the cab busted off, and it took me a good 15 minutes to find it. After I’d let the locomotive run 20 minutes–with a big load this time, to slow it down and keep it on the track–I re-glued the broken corner with some Tenax-7R plastic welder. Tenax is great stuff–apply a small amount of it, hold the pieces together for a minute, and they’ll stay. It’ll take 8 hours for the joint to completely dry and reach full strength, but after just a minute, the joint is as strong as it would be with every other glue I’ve ever tried on plastic.

Lesson learned: Keep your test track on the floor. Or surround it with pillows. Or use a Marx transformer that can send just a couple of volts on its lowest setting, so slow actually means slow.

The next day, I ran my 490 the opposite direction on my track–the first time I’d ever run a locomotive that direction on the track. And guess what? I found a bad spot on the track. It derailed–again–and the piece I’d glued fell off in spite of the cushions I’d placed all around my table.

Then I remembered that Tenax is amazing stuff if your two pieces fit snugly, because unlike some glues, Tenax doesn’t fill in the gaps at all. The break must not have been clean enough to give the Tenax adequate surface area to create a very strong bond. So I re-glued with epoxy, since epoxy will fill gaps. It held this time.

So now Marxie has a battle scar and he’s probably worth half what he was worth a week ago, but he runs very well. It’s short on ability but long on heart–it struggles pulling loads that won’t make a Lionel break a sweat. But it’ll pull them, and you can see it working hard doing it. And where a Lionel will just give up on a grade with a curve with a long load of cars, the Marx just keeps spinning its wheels, ever faster, until something manages to catch and it propels on its way.

I think that’s what I like about it. It never gives up.

There are a few other things to like about them too. Like I said before, you can buy a Marx locomotive for less than the price of the box a Lionel locomotive came in. Marxes are easy to take apart–mine’s held together by four joints, easily pried apart with a small slotted screwdriver. And the motor is simpler than a Lionel, so it’s easier to understand. If you want to learn how to fix toy trains, Marxes are easy to learn on, and if you mess up, you ruin a $15 locomotive rather than a $100-$1,000 locomotive.

Wikipedia hits 200,000

Dave Farquhar net.culture , , , , , , ,

Over the weekend, Wikipedia reached the milestone of 200,000 entries in its free encyclopedia. Dan Gillmor praised it in his syndicated column.As usual, Slashdot got wind of it, and as usual, people who’ve never even seen the thing started spouting off about how something that anyone can change can’t possibly be accurate or useful. (Wonder how many of those people run Linux?) At least one person ran over there and vandalized some pages to demonstrate his point. And I’m sure the edit got reversed within a few minutes when someone noticed a change in a watchlist. I, for one, visit occasionally and whenever a change pops up in my watchlist, I look at it out of curiosity. Sometimes I learn something and sometimes I find defacement, which I can then fix.

But I guess if Slashdot discussions were the only thing I ever read, then I wouldn’t have that high of an opinion of something written by random people at will, either.

A more valid criticism is that Wikipedia, by its very nature, can never be accepted as a source for scholarly work. But then I thought back to the papers I wrote in college, and I don’t believe I ever used an entry out of any encyclopedia as a source in any paper that I wrote. And being a journalism major who was 3 credit hours away from a history minor and who filled most of his electives with English and political science classes, I wrote a lot of papers in college. When I wrote my paper on the influence of William Randolph Hearst on the William McKinley administration, I may have looked up both Hearst and McKinley in an encyclopedia to get background information, but I doubt it. Why use an encyclopedia when there are so many good, specialized texts available?

There is still valid use for questionable sources in scholarly work anyway. One professor actually encouraged us to look in Mother Jones and American Spectator when possible, just to get the views from two extremes on the topic at hand. And Wikipedia can give you leads to follow, even if you don’t end up citing it in your bibliography. The material in Wikipedia came from somewhere, after all.

I’ve had a love-hate relationship with Wikipedia for the past year or so. I left it entirely when I got tired of an overzealous editor deleting my additions. I guess I wasn’t the only one who complained about her; she’s since disappeared. I used to look at the day in history and try to fill in the gaps; for example, I noticed on one of Jesse James’ anniversaries that he didn’t have an entry, so I put one together. Unfortunately, high-profile stuff seems to be what attracts both vandals and overzealous editors.

So when I came back, I decided to concentrate on things like baseball, obscure old computers, and things that have connections to Missouri, particularly Kansas City and St. Louis. Those are more my areas of expertise anyway, which makes writing them a lot less work, and the topics are obscure enough that I’ve been mostly left alone. Those edits that do pop up usually are true improvements, rather than someone going on a power trip. My entries get linked much less frequently on the front page now, but I’m happier.

Another thing that I’ve taken to doing is to always check Wikipedia whenever I’m researching something. Sometimes Wikipedia has good information, but may be missing some detail I found elsewhere. Sometimes it has very little information. In either case, I try to enter the information I found. I recently created entries for Lionel Corporation, American Flyer, and Louis Marx and Company. Of course I got interested in them because of my recent renewed interest in toy trains, and during the time period I’m interested in, those companies were the big three in the United States. Some of the information about those companies is difficult to find online. Or it was. Now it’s in Wikipedia, which makes it easier to track down.

According to Wikipedia’s records, I’ve contributed to 323 entries. Most of those are pretty minor. There are lots of people who’ve contributed a whole lot more than me.

But I often notice a domino effect on my entries. Soon after writing the Lionel entry, I wrote one for O gauge model railroading in particular, and made an addition or two to the main model railroading article. Soon, other people were making their additions to specific gauges and scales, or creating them when entries didn’t exist. Within a few days, Wikipedia had some good information on the topic. It’s anything but exhaustive, but I’ll put it up against any other encyclopedia’s offering.

One difference that I have definitely noticed about Wikipedia, as opposed to conventional encyclopedias: Wikipedia has a much better pulse on pop culture. I’ve often lamented that people who have entries in the more traditional encyclopedias don’t have entries in Wikipedia, but every teenybopper band that’s come along in the past couple of years has an entry. But I guess ultimately that’s going to prove to be Wikipedia’s strength. In 30 years, it’ll be possible to go to Wikipedia to find out what the hubbub about Justin Timberlake was about. And in 30 years it may be the only place. (One can only hope.)

And in 30 years, those people who deserve more attention undoubtedly will have gotten their entries as well.

I definitely encourage people to look up their topics of interest over there and think about adding some of their knowledge.

Outsourcing hurts all of us

Dave Farquhar Society , , , , , , , ,

Cringely has written eloquently about the effects of outsourcing to India.

Outsourcing hurts more than just IT.Every day, I drive past an old factory. I don’t know what’s in it now. From its appearances, not much, because I’ve never seen any traffic around the place. The sign and the smokestack says “International Shoe Company.” Curious, I did a little bit of digging. It seems that at one time this was the largest shoe manufacturer in North America. It’s pretty obvious that it isn’t anymore. It’s not for lack of people around to staff the factory–there are plenty of people in the neighborhood. From the looks of some of them, they could use a job. But the factory sits, abandoned, for one simple reason.

We don’t want to pay people $5.25 an hour to make our shoes. Those of us who are willing to pay people $5.25 an hour to make our shoes can’t, because not enough other people are willing.

So the once-proud factory sits.

I drive past a smaller operation every day too. It’s boarded up and fenced up, and overgrown with weeds. A faded sign says, “Missouri Candle and Wax Co.” It obviously never employed as many people as ISCO did. But there’s a neighborhood all around it. I’m sure at one time it supported a few households in the neighborhood around it.

Not anymore. The neighborhood’s in better shape than the candle place, due to some rehabbing that’s going on. But I guarantee the people moving into those houses don’t work anywhere in the neighborhood, because the jobs aren’t there anymore.

The jobs aren’t there because we don’t want to pay people $5.25 an hour to make our candles.

Now, I can kind of see paying lower prices for shoes, in some cases. You need shoes. I can’t so much as walk to my car without shoes, some days. If you don’t have a lot of money, you’ll buy the cheapest shoes you can find. It’s a matter of survival.

But candles? Candles are a luxury item.

Like Cringely says, the government isn’t going to do anything about it because the government doesn’t care. Big business wants to offshore, and modern Republicans don’t seem to believe big business is capable of doing anything wrong. If big business says it should outsource, well then, God Himself must have handed them a stone tablet that says, “Thou shalt outsource.” Democrats won’t solve the problem because Democrats need needy people in order to keep their jobs. So Democrats profit from offshoring just as much as Republicans, although for different reasons.

Richard Gephardt suggested solving the problem by instituting an international minimum wage. That would solve it neatly–if a Chinese worker makes $5.25 an hour, then suddenly it’s cheaper to pay the $5.25-an-hour worker who lives next door to make your candles and shoes and computers.

But Richard Gephardt isn’t going to be our next president, and Richard Gephardt knows just as well as you and I know that there won’t be an international minimum wage coming down the pike any time soon. It’s just election-year rhetoric.

That means you and I have to solve the problem.

Cringely said one thing that I disagree with. He said companies who offer good customer service grow. Maybe sometimes they do, but if that were true, virtually everybody would be bigger than Wal-Mart, because at Wal-Mart, “customer service” is synonymous with “customer returns.” If you need to know where you would find mineral oil, it’ll take you half an hour to find an answer to your question. If you’re lucky.

I guarantee if you walked into A. G. McAdow’s in Pharisburg, Ohio in 1883 looking for mineral oil, my great great grandfather could tell you if he had it and where it would be. He’d even know what the stuff was.

I’ll tell you what customer service is. It absolutely shocked me when I got it last week. I went to Marty’s Model Railroads, and I’ll admit, the reason I went there was because they have the best prices I’ve found locally on used train stuff, and I can get it without the hassle of bidding on eBay. I asked Marty if he had a Marx coupler. He went and looked. He came back and said he didn’t have a coupler but he had an entire truck, and asked what I wanted to do with it. I said I wanted to make a conversion car. He pointed me to the cheapie bin, told me exactly what I should look for, and then when I found an $8 car that was suitable, he took the car, along with the Marx truck, into the back room, drilled out the Lionel truck, and came back with the one-truck Lionel car and a nut and a bolt. We put the car back together on his counter, by the checkout. Then he charged me 10 bucks.

Ten bucks would have been a good deal if he’d just handed me all the pieces and said good luck. But with his tools in the back room, he was able to do in five minutes what would have taken me most of an hour.

Later that week, I took in two Lionel locomotives for repair and bought another conversion car–this time, not because I knew I’d get the lowest price, but purely because I knew he’d treat me well.

When I go to pick those locomotives back up, I need to tell him that’s exactly why.

Marty’s business is growing, but I don’t know if that’s because of outstanding customer service or if it’s simply because he’s the only shop left in eastern Missouri that fixes Lionel trains.

Activists talk about thinking globally and acting locally. Building a sustainable economy requires less global thinking and more local acting.

Don’t go to Lowe’s and Home Depot if there’s a corner hardware store you can go to. The last two times I’ve gone to a local mom-and-pop hardware store I got help without asking for it, got exactly what I needed, and got out of there faster than I’d be able to get out of the big-box store. And as far as the price, I probably made up for it on gas. Remember, Lowe’s and Home Depot are megacorporations. More of the money you spend at the mom-and-pop place will stay in the area.

Don’t go to Wal-Mart if you can get what you need someplace else. Target is a megacorporation too, but it puts more money into the communities it works in. But if there’s a locally owned business left, frequent that.

Don’t go to chain restaurants if there’s a locally owned place you can go to instead. It seems like St. Louis has a thousand delightful locally-owned restaurants. There is no reason whatsoever for a St. Louisan ever to eat at Olive Garden.

And wherever you go, check to see where the product you’re buying was made. I needed a putty knife the other week. The cheapest one was made in China. The one on the peg next to it was made in Canada and it cost 10 cents more. I bought the Canadian one. Neither one helps the U.S. worker, but when I buy the Canadian one, I know the guy who made it was paid a fair wage, and that’s worth the extra 10 cents to me.

Sometimes you have to get creative to avoid these things. If I want model train stuff, Lionel and its competitors all seem to be building everything in China. But I don’t have to buy new stuff.

The same goes for clothes. If all the clothes you like are made in countries that operate as the world’s sweatshop, buy used ones. At least then the operation that created the sweatshop doesn’t profit a second time. Besides, used clothes are cheap. And no one will ever know those year-old clothes weren’t originally your year-old clothes.

DVD players are all made in China today. So there, the decision is pretty easy. Buy the cheapest one. Then you’ve got more money left over for the times when you do have a choice.

Finding a list of countries whose workers earn a living wage has proven difficult for me. Does anyone else out there have such a list?

Of course, I would first prefer to buy locally made and then used, given the option.