Everthere Carriers isn't the only company, big or small, wrestling with the idea to move manufacturing to China.

Economically, it just makes sense, said Jonathan Leightner, a professor of economics at Augusta State University and an expert in Asian economies.

China and many other countries have lower labor wages, which keeps costs down.

When competitors already have gone to China, sometimes it's also necessary for a company to do the same to stay in business, he said. With competitor carrier companies already in China, Everthere Carriers is "feeling the squeeze," Dr. Leightner said.

Both companies and consumers benefit from Chinese manufacturing, he said.

"U.S. consumers benefit because ultimately we can get it for a better price," he said.

The cost is the manufacturing jobs, but "dollar for dollar, we gain more than we lose from that trade," he said.

Auggie Tantillo, the executive director of the American Manufacturing Trade Action Coalition, a fair-trade lobbying group, disagrees.

"There's a bottom-line issue being overlooked," he said. "In order for someone to consume, they need to have a job. They need to have a job that allows them to purchase more than the basic necessities of clothing and shelter."

Mr. Tantillo cites long-term studies that show about a third of employees who lose manufacturing jobs won't find work, he said. Another third find lower paying jobs and only the remaining third find an equivalent, he said.

For companies considering moving manufacturing overseas, there might be other drawbacks, officials say.

Economists can't predict what will happen to China's government and economy in the next decade, Dr. Leightner said.

"Who knows what the current leadership of China is going to do?" he asked.

Although he hypothesizes that China will continue to move toward a free market and democracy, it all depends on who is in power, he said.

Transportation is costly and sometimes unreliable.

It doesn't look as though Avian flu is going to affect transportation in the United States, this year at least, but in China it's another story, Dr. Leightner said.

Understanding the culture, the communication gap and legal red tape are other variables that could hinder a successful move.

"It takes some effort," Dr. Leightner said.

Anybody who shops at a deep-discount store can understand the benefits of China, however, Dr. Leightner said.

If people purchased only "Made in America" goods, many prices, such as clothing, would go up at least tenfold, he said.

Mr. Tantillo argues that "hidden costs" are in effect now as a result of jobs moving to China and limits should be imposed to control these costs.

Reach Tony Lombardo at (706) 823-3227 or tony.lombardo@augustachronicle.com.

Building a Business

Building a Business is a new, yearlong series in which The Augusta Chronicle follows the progress of a local start-up company, Everthere Carriers LLC, as it attempts to take its fledgling product to a national market. The following is the first story. Updates will be made monthly.

 • Series will follow company's journey
 • Area men get education in business as they mass-produce novel carrier
 • Go to manufacturers, designers with ideas
 • Trade show marketing is success for local business
 • Patent process is easier with help
 • As sales grow, Everthere is turning into full-time job
 • Product's success is dependent on testing
 • Local business picks up by latching onto Internet
 • Company revamps Web site to draw business
 • Everthere settles into new offices
 • Negotiating lease can be challenging
 • Family support is important to fulfilling dream
 • Work-life balance is one key to success
 • Licensing lets buyers tote interest
 • Logo-product partnership is beneficial to both sides
 • Everthere Carriers staff works together for success
 • New hires ease burden of increased workload
 • Everthere Carriers takes new product to health exposition
 • Preparation is important at trade event
 • Firm wrestles with issue of foreign labor
 • Cheap overseas work has its drawbacks
 • Everthere Carriers bids farewell to productive 2005
 • Everthere Carriers has come a long way
 • Q&A with Everthere's Steve Threet