Koyaan is quite correct to say that unless price is definately no object, manufacturers need a global supply chain. Note, however, that Outlaw is rather unique in their price category to offer a wide range of amplifiers that are "Made in the USA". These days, things such as AV receivers and surround processors at affordable pricing almost have to come from an off-shore factory.

Actually, I was going to give the 997 a higher rating for being made in the USA.

As Koyaan has stated, more and more manufactures are moving offshore. A great short term business model, until no one in the US has a job. Then these companies will have no customers. It's not a competitive price, it's a low price while still maintaining a double digit profit margin. I know, I spent six months in China setting up a plant for a company I used to work for.

There isn't that much labor in these units, all of the boards are made on automated machines. Labor cost is the big cost saver which includes benefits and taxes. But when you figure in VAT tax and shipping costs it doesn't make sense unless you’re making a million widgets or the process is very labor intensive.

Sorry for the rant, but I've seen firsthand how this works. If companies would automate their factories here there wouldn't be a big need to build in China.

Brax,
IMO you're right on. This has been something I've been thinking about recently in light of the economic meltdown. I will remain an Outlaw customer because of their amps. They are more money than a comparable product from Emotiva, but Outlaw amps are made in the US. I would rather have my money go to a company that provides US jobs. Your point about no one having jobs is well taken...as I peruse many of the audio forums I frequent, I'm starting to think 'where are some of these people getting their money'? When so many people have either lost their jobs or are in danger of losing them, I still see people mulling over whether to spend $5k on this component or that...at this point I'm not considering another purchase because of what the economy could bring in the next year. That might change, but the way I feel right now about things makes me very uneasy. Some people will always have money to spend no matter what happens, but if a company like Outlaw (or Emotiva or AV123) are built around selling products to middle class Americans, that could be in deep jeopardy if things continue the downward spiral. I guess my point in all this is kind of the same as yours...who will be buying any mid level to high end gear when the jobs go away? Sorry for my rant too.

Wouldn't it take automation and low wages to match the Asian market?

Part of the challenge for a company like Outlaw comes from their size and structure. Outlaw doesn't own any manufacturing facilities. They partner with other companies that do own manufacturing facilities. I think that Anthem builds their processors in Canada (which is one reason the Statement D2 lists for just shy of $7,000), but I doubt they are eager to hire out their facilities. I don't know where Lexicon builds the MC-12 (which, last I checked, runs about twice the cost of a D2 if you get room correction and HDMI). There's not really anybody else I can think of who might have domestic manufacturing facilities that are set up to build a surround processor or receiver. With Outlaw's manufacturing motto , that makes it hard for Outlaw to build processors state-side.

I'd like to see Outlaw build more domestically, but to be honest I'm impressed that they build as much as they do. Their partnership with ATI (who builds amps in California for a number of companies) has produced a long-running series of very good multichannel amps that have all been built here in the US. Their speakers are built domestically, as well, although the subs are built overseas. When you add up the products they currently sell that have the "Outlaw" name on the front, eight are built in the US (six amps and two speakers) and eight are built overseas (two processors, one amp, three subs, and an assortment of cables).

I'm not calling out Outlaw, just a general statment.

My concern has nothing to do with the economics of manufacturing offshore - and everything to do with not supporting China in any way, shape or form.

Unlike most of the Mall Wart mentality, I'm even willing to pay more, even significantly more, to buy from somewhere other than China.

Malaysia sounds good to me (at least in comparison to China.) So an Onkyo PRSC886P at $1600 versus an Outlaw 997 at $1399 (less the $100 discount for Model 950 owners)? That would be $300 very well spent in my books.

No, the factories (most any) are not automated. They pay such a low wage, labor is cheaper than investing in automation. Not only that, but what are you going to do with a Billion people.

I work in manufacturing now, I just put into place an automation cell that will pay for itself in 1.1 years. We did go from 3 operators to one but at least that one was in the US not China.