Archive for April 9th, 2011

IS OUT-SOURCING THE WAY TO GO?

April 9, 2011

Canada produces more maple syrup than any other country in the world.  We also produced more hockey sticks than any other country in the world. Not any longer.

Sher-Wood, making hockey sticks for more than 60 years in Sherbrooke, is transferring its hockey stick production to China to slash costs. About 40 employees will lose their jobs although the head office employing 110 will remain in Quebec.

This is  a sad tale, the end of a storied Canadian plant making the world’s best  hockey sticks.

Could the company have  continued to make sticks in Canada.?

Seems not.

Had Sher-wood stayed in Canada making sticks, it would have been swamped by cheaper competitors  and sooner or laater would have been forced out of business altogether.

By going overseas to China to make sticks more economically, the company remains as a going concern.

Is out-sourcing the way to go?

What do you think?

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