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DESA Heating Products to Expand to Bowling Green Facility, Move Production Back From China

07/16/2008

Over the last year DESA has begun bringing back a significant percentage of its manufacturing from China, due to changing times in the world economy. Factors such as the continuing rise in the cost of oil, the weakening of the U.S. dollar compared to foreign currency, and the recent rise in wages for Chinese workers are making manufacturing in China no longer as economical as it once was. The continuing spikes in the cost of oil are making transportation increasingly expensive, especially for larger, heavier products such as the consumer and professional heaters that DESA produces. Bowling Green's centralized location will not only allow DESA to save on transportation costs, but will expedite the shipping process. The company now can ship products to over half of the U.S. in about one day - compared to the average six to eights weeks timeframe to ship from China.

"Bowling Green, Kentucky, is an ideal location for DESA Heating Products' expansion because we are located within a day's drive of 70 percent of the U.S. population, we have a large labor base with whom we have a very solid relationship, and we enjoy a low overall cost of doing business here," said Claude Hayes, president of retail heating for DESA.

 

 

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